No ego here, but I did buy some QQQQ calls at the close. So far, all I see is a perfect entry, subject to change, of course. When something breaks out of a price channel like the Q's did, then comes back to backtest-I love to use the backtest as my entry point. A reasonable stop will provide a limited risk-and the reward in this situation can be quite substantial. As far as NOTHING to be bullish about-I think that word covers a bit too much ground. My ewave count calls for a bounce at the minimum, soon, for one. For another, sentiment polls aside for a moment, equity players showed by their put buying today they have become VERY bearish, with equity PC at 1.08 Sure, I know it's just a rough number, but it's a huge one, as well. I know it goes against exactly what you are saying, but, that PC level is an indicator to me, when combined with my other TA. I suppose, moms and dads may now be able to load up on puts, get paid, no problem-but I'll need to see that first- as their history prohibits me from assuming it. Or, just maybe, as it has happened time in and time out in the past-they may be just a bit early with those puts-and have that cash taken from them with stealth speed. At any rate, with a stop in place-I'm willing to chance that for the equity players-it won't be "different this time".
Spooky
Markets are closed NEAR at LT Major Supports, actually slightly closed below it.
We have "CPI" number tomorrow, and nothing indicates that we have a good probability that market will trade up except that 60m and daily charts are showing positive divergences and many traders are positioned for market-break down as you noted.
Market sentiment is extremely bearish. This signaled "Reversal" in the past, but I think that this time seems to be different.
Markets are oversold, so we will see a bounce. If we have successful bounce, the LT supports become stronger. But so far, only bears/short-sides are making QUICK FORTUNE... unfortunately....
Good luck
Edited by Trend-Signals, 14 August 2007 - 06:45 PM.