Trading Blogers

It is a well engineered, government supported manipulation that Well Fargo , unfortunately, reported 0.55, a fake number, still 10 cents below expectation.br /br /But the FASB rule change allows them to report it like this. They can state a false net income number, as long as they disclose the writeoffs in brackets down below.br /br /The stock is under tremendous distribution since the open, despite the fact that this is a pre-holiday trading day. br /br /WFC, considering a PE ratio of 16 which is over the top given the current conditions, is worth only $8 today. However the market doesn’t only price today’s conditions but 6+ months future. br /br /So WFC today is worth $2-$3 like all other major banks you know of.br /br /Here is the thing you should be careful. Conventional wisdom today changed. Masses now think that they will get the same reaction after all other bank earnings. There is no free lunch in this business. If the market unloads WFC after the news, which is the current case, this mind-set will be a trap to the broke-house. Because these banks may not see these prices for the rest of their business lifes.br /br /So within the grand schema I gave yesterday, SP500 continues its congestion within 800-850 range until earnings season is over. Therefore I am shorting the upper boundary and buying the lower boundary of the range during this time frame.div class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-1571714541570046906?l=xtrends.blogspot.com’//div

If today was not a pre-holiday trading, Wells Fargo would close negativediv class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-7160039696719872727?l=xtrends.blogspot.com’//div

I have other important things to do for the rest of the day. Market is slow, it is not worth for additional 2 points. See you later.div class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-706179255244483431?l=xtrends.blogspot.com’//div

Like I said yesterday, I think SPX is congesting between 850-800 area during the earnings.br /br /We have tested the lower boundary of the range last night. I have 2 hours sleep as I stayed awake all nite to help bulls. I think immediate target for ES is around 828.div class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-2254569962838418326?l=xtrends.blogspot.com’//div

upto 811… my little contributionbr /br /Edit:br /I was a freshman in high school when this movie was released. I am a huge leg man, she has awesome legs. I wished Teri wasn’t wearing the tights in this scene br /br /object width=”425″ height=”344″param name=”movie” value=”http://www.youtube.com/v/x8Wcmbk_a1Qhl=enfs=1″/paramparam name=”allowFullScreen” value=”true”/paramparam name=”allowscriptaccess” value=”always”/paramembed src=”http://www.youtube.com/v/x8Wcmbk_a1Qhl=enfs=1″ type=”application/x-shockwave-flash” allowscriptaccess=”always” allowfullscreen=”true” width=”425″ height=”344″/embed/objectdiv class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-1763852949398500409?l=xtrends.blogspot.com’//div

Not a big one but I do not know if the gap fills on SP. It may or may not.br /br /One thing I keep in mind that the market is topping out. Tops are process, we will see some congestion between some range before the bottom falls out. My best guess for the range is 850-800 on SPX.br /br /Another thing as a part of the big setup I keep in mind is we will print the top this month if we didn’t already. This is important because at one point, it will help me to stick with the trend once breakdown happens. br /br /But for now, in my opinion there is a short term setup in place suggesting some upside test.br /br /As usual, I will not go long any rally as they are all subject to be fake-outs.div class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-6176293312712509436?l=xtrends.blogspot.com’//div

I am no longer short ES/SPdiv class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-2046740080919175152?l=xtrends.blogspot.com’//div

This leaves me with 50% ES SP shorts (except stocks and ETFs)div class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-8333693838306713190?l=xtrends.blogspot.com’//div

As expected , 840 level was the top, at least short term.br /Of course we do not know for sure that this will turn into an important top yet but like I said and showed several times before, there are too many xTrends evidences that 840 area was the top that can possibly lead us to sub 600 level over the intermediate term. However, there are interim target levels before we get there. For example 750 area could be a decent ST support.br /br /I am 80% short SP and ES from 840, I will be fully short on the first opportunity I get. (Watching 825 area on ES)br /br /PS: This is a holiday-shortened week. Volume will likely decrease towards the weekend. Expect the market to extend intraday moves in the direction of the underlying trend.div class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-3728072424991652311?l=xtrends.blogspot.com’//div

div class=”blogger-post-footer”img width=’1′ height=’1′ src=’http://res1.blogblog.com/tracker/2192317321691025209-2045795221394506840?l=xtrends.blogspot.com’//div