Still overbought !!!

5/6/09

All major stock indexes are still propelling upward even in super overbought condition. However, it is getting closer to have a big correction/pullback. It should not be any buying here unless you are daytrading. Bank Stress testing result will be annoucned after tomorrow market close and there will be non-farm payroll number report on Friday. Would these two factors can give the excuse for sell off??!

My Chinese Blog about technical stock charting !!

5/5/09

Please go to cigstockchart.blogspot.com. to see the chinese version.

Told y??! Mr. Obama is screwing us the Taxpayer!!

5/5/09

As we noted this morning, lawyers representing Chrysler said in court yesterday that the government would not be getting its $8 billion of loans back, including about $4 billion in debtor-in-possession financing.

Well that news was so stunning -- so obviously an admission that the bankruptcy itself is a bailout to the union -- that we had a hard time believing it. But it's totally true.

The administration confirmed the news to CNN:

Some of the main assumptions listed by Robert Manzo of Capstone Advisory Group were that the Treasury would forgive a $4 billion bridge loan given to Chrysler in the closing days of the Bush administration, a $300 million fee on that loan, and the $3.2 billion in financing approved last week by the Obama administration to fund Chrysler's operations during bankruptcy.

An Obama administration official confirmed Tuesday that Chrysler won't be repaying the loans. A portion of the bridge loan may be recovered by Treasury from the assets of Chrysler Financial, the former credit arm of the automaker which is essentially going out of business as part of the reorganization.

Wuoooooooo!! Told u all long time ago. However, I am not clever than anyone of you. We are got fcuk up by our own government. Do you all know how much $8 billion worth??! Damn,...I do not want to post any chart or make any comment about stock market.

Head Fake or for real ??!

5/4/09

I am wrong about this intermediate high was marked on 4/30/09. Well, the last friday action did not confirm the bearish reversal pattern(Evening star) I expected anyway. However, the uptrend is intact and today violent action breaks upper trendline, it could be bearish to going on. Still, I need to see if tomorrow gap down and keep sell off and more to come. Although I am bearish, the short and intermediate term are still bullish. Trade with cautional bullish is essential now. If this bulls can keep on, the next resistance would be 960-970(200 MA area).
The news is out, we got 10 out of 19 banks need raise more capital from WSJ tonight. Ooops, we all know that most banks are insolvent. Let's see how market and government play with those zombie banks!!

WTF our scheme Fed !!!

5/4/09

Please read closely on the following news from WSJ today:

The Federal Reserve Bank of New York shaped Washington's response to the financial crisis late last year, which buoyed Goldman Sachs Group Inc. and other Wall Street firms. Goldman received speedy approval to become a bank holding company in September and a $10 billion capital injection soon after.

During that time, the New York Fed's chairman, Stephen Friedman, sat on Goldman's board and had a large holding in Goldman stock, which because of Goldman's new status as a bank holding company was a violation of Federal Reserve policy.

The New York Fed asked for a waiver, which, after about 2½ months, the Fed granted. While it was weighing the request, Mr. Friedman bought 37,300 more Goldman shares in December. They've since risen $1.7 million in value.

Mr. Friedman also was overseeing the search for a new president of the New York Fed, an officer who has a critical role in setting monetary policy at the Federal Reserve. The choice was a former Goldman executive.

...............

The message I would like to comment is: Government is OK that Our NY Fed Chairman Mr. Friedman own GS stocks and served to be borad member in GS Corporate borad. What the FXXX??!! Damn, should there occur conflict of interest?! WTF to our Washingston Administration. I am so so angry. Well, it means our government is screwing us up. Period. They have different standards everywhere despite Mr. President "Good Guy" image. Good luck to us all.

Good Forecast from IBD Ads !!!

5/4/09

I guess anyone have seen this internet ads or TV ads showing off how IBD had forecast the bloody selloff last year. However, if anyone of you has kept followed up with my blog, all of you can remember how I post my point of view on 9/3/08-9/5/08. Here I repost it:

Very bearish ahead

9/3/08

Yesterday the major indexes were withdraw all the gain they had which already told us it was going to be very bearish. Normally, the recent pattern is up after 3 down days in a row. But if we really are looking detail in daily chart of Dow & S&P. We could find out each downtrend started by a determined downward day like yesterday. This Friday we will have non-farm payroll data which would be again ignited another sell off?! I am here to say our intermediate tops are reached as yesterday highs. Be careful, folks, another leg down may be on the way soon. Good luck!

Major move is coming

9/4/08

I guess people could see what is going on next here!? Watch out the S&P 1260 mark. I remain bearish on coming days. Market need to retest the lows of July or this year.

Dow on the way to 10,000

9/5/08

This daily chart of Dow tells me that market is indeed going to retest july lows. Moreover, the pattern may indicate it is more likely going to trade lower. Double top appeared after each intermediate uptrend tops. See once the uptrend line support broken, it followed one distribution day. In order for sure if it has legs down to lower, I need to see at least one more distribution day. Now, it is morning hours of 9/5/08. I will try to analysis more this weekend. BEAR RULES period.





See!! Awesome!!. Anyway, it is just a review. I do recommend people order IBD if they are new to stock market. Wall Street Journal is more likely Journal kinda of Newspaper.

Sell in May, go away??!

5/4/09

It has been awhile since I last wrote something here. The above is a vision stats. We are just trading the 2nd day of May. It seems this is very strong Bear Market rebound.