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Tuesday, September 15, 2009

Tuesday Morning Update

Whatever the president said in his speech last night, it inspired a 3 minute rally in the market, followed by an immediate selloff. I thought that yesterday's action did not change the technical picture much, but I tried to look at the chart this morning as if it was the first time I had ever seen it (a moment of Samurai inspiration). Support at 1036 lept out and bit me. The middle point was a bit of a problem, as there were two obvious point to put it. I chose the lower one at 1045 (again, Samurai inspiration), which puts the top line at 1054. XLB is leading, XLK and XLI not far behind, with XLP, XLV and XLF in the red (die, XLF, DIE!!!). The market has bounced back after the morning selloff thanks to the PPT overwhelming bullish sentiment of the investing public.

Sometimes I think if I made definitive calls, called other bloggers names if they made a different call, which my readers would then follow and get their accounts wiped out, then when proven wrong I would just say I was right but "early", I would be better known than I am now. There is something in my makeup which prevents me from doing that, I think it's called "ethics" or something like that. Last night I thought the Russell would gap up into the 50% retracement, then sell off, but it was not a call, just something I saw as a possibility. We got everything but the gap this morning. Not that I'm patting myself on the back for my brilliant non-call, but I look at things as probabilities rather than certainties.

I have 137 new highs so far. I tried looking for some non-ballistic, non swine-flu hype breakouts this morning, and found good looking charts in GSIC, HMIN, and LINE. There is nothing on our watchlists reporting, however there were a couple of notable reports this morning. Denninger has his take on BBY, which is a must read, and KR is down huge, 8%.

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