No replies to this topic

[arbman]

NYMO is barely negative, it means if this market is going to fall from here, it has a lot of room to fall. NYSI trended down for a month and the bounce did not amount much to turn it around. OTOH, there was some serious short pile up over the past 2 days and, NYMO is barely negative and a sharp squeeze can turn NYSI up as well... Nice!!! So the trend is down, but barely damaged after 3 weeks of decline, although so far it was able to only add up to 60-70 points, NYMO is also divergent, then you also simply have a down trend with NYMO reset and it is about to dive and there is a gap at 1280 sucking like an Hoover... The real question is where will the money come from to push this market at this late stage of QE, certainly Bernanke could say that they will continue to gradually reduce, but they won't begin another QE for sure! OTOH, he will want to get ahead of the market to prevent a panic... Basically, either way there is a big move coming, I will simply go with delta neutral, we may still only see a wide range rather than decisively trending down... Best of luck.

Edited by arbman, 03 June 2011 - 03:29 AM.