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.


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.