Tuesday, February 10, 2009

Was Today's Market Dump Preordained?

I pulled an intraday look at pricing on the S&P. Included on the chart is an intraday oscillator based on buying pressure. As you can see, price trend is in the direction of the oscillator. And, often buying pressure predates price movements. Yet, while the financial media was cheering yesterday, buyers had started to walk away from the market as is clearly contained within the red vertical lines . Smart short term traders would have been short today's market. Better known as buy the rumor and sell the news or more likely that Wall Street had some indication of what Geithner was going to announce today and had planned to dump the market in a tantrum of disapproval for a Treasury framework that leaves Wall Street responsible to clean up much of their own messes. Government cannot fix this problem. There is no free lunch.
posted by TimingLogic at 2:11 PM