Thursday, August 27, 2009

Morning Briefing for August 27th: Breakdown


We've broken below the overnight lows from 8/25, as risk aversion themes--selling in commodities, buying of Treasuries, buying USD--are weighing on stocks (ES futures above). Selling pressure is significant, with no NYSE TICK readings even making it to +500 so far this morning. I am watching to see if we accept value below those 8/25 lows; if so, we're setting up a short-term downtrend, which is following the many non-confirmations that I have been blogging about.
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2 comments:

Hitch said...

How do you know that it will be only "a short term downtrend?"

Matthew C. said...

Interesting morning. We opened flat which is fairly unusual and I didn't see buyers show up immediately in the first 2 minutes, so I put on a short which immediately went green right afterward. I figured if buyers weren't showing up right out of the gate then long holders would start dumping shares, and sure enough they did.