Tuesday, March 17, 2009

Don't be surprised on WED (fomc)


if there is one of the strongest mid day-reversals we have seen in a LONG long time. (up/flat.....to.......down)


lots seem to be hoping for miracle news from FOMC, they "better" deliver, b/c its seems priced in by the bulls to me.
Focm has a strong history of being a rally into....sell off after for the longest. If the first "impulse" is bearish AFTER, its going to last a while.
We remain in a bear market, till (imo) the rsi resistance line that has been there this ENTIRE bear....is broken.




Posted by Erik at 6:47 PM

6 comments:

  1. AnonymousMarch 17, 2009 at 7:25 PM

    I am confusing where is the blue (moving average)

    Thanks

    ReplyDelete
  2. ErikMarch 17, 2009 at 7:27 PM

    blue = rsi resistance


    purple = rsi support

    ReplyDelete
  3. AnonymousMarch 17, 2009 at 7:29 PM

    Thanks! We are at the top of the RSI blue line right now.

    ReplyDelete
  4. In Debt We TrustMarch 17, 2009 at 10:22 PM

    FOMC will just reveal that they will continue buying "Triple AAA Rated" ABS to support the bond mkts.

    The Fed's goal is to narrow the yield spreads in ABS trading - nothing more.

    Speculation on whether they will buy Treasuries is just speculation and I will not take a position in bonds until afterwards.

    ReplyDelete
  5. AnarMarch 18, 2009 at 6:31 PM

    DXO Daily - ema13/34 about to cross! chart looks like a beauty, your thoughts?

    ReplyDelete
  6. In Debt We TrustMarch 18, 2009 at 9:21 PM

    OK I was wrong about the Fed not buying bonds but right about continued abs purchases.

    But I did not have a bond position and cautioned people not to take one - long or short in the face of an unpredictable event like the FOMC.

    I am going to wait for a pattern to consolidate on the long bond before trading it again.

    ReplyDelete

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