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Direxion Daily Financial Bull 3X ETF Message Board

  • CosmicHemorroid CosmicHemorroid May 3, 2009 3:56 PM Flag

    Something to consider for Monday

    If you believe the idea that:
    1 - Institutions are sitting on the sidelines
    2 - GS is running the market (check out recent Zero Hedge articles)
    3 - We need VOLUME to get over the resistances at 875 and 888

    Then take a look at the SPY chart on the 60 minute, or even better, 178 minute, and you'll see what's happening.

    Each time we hit a resistance top, they (GS) drop it back down to support, and then bring everyone around (day traders, swing traders, program traders, etc.) and shoot for another top. Everyone piles on and we hit a new high.

    T4D and I were having a discussion and we are in agreement that there's a SPY channel and gap around 861 that needs to fill first. High odds, as he likes to say. This will involve some retracement for FAS.

    Here's the take:
    The GS trading desk is running this market...........I am 90% sure of it. When they want to make a big move up they bring it down to strong support and do a hard reversal. They do this because then they have the day traders, program trading, short covering and swingers on the ride helping the push upwards.

    That combination is how they will bring the Big volume.

    We have not seen this yet.

    In my analysis I weigh heavily on this pattern.

    This is just me throwing it out there at this point........but its an initial thought:

    Mon/Tues they will test MAJOR support lines on Financials and CRE and at some point in time do the reversal.

    Once the reversal kicks in they will run it very hard.

    I am going on the stress tests being released AH thursday in this analysis.

    Wed should in theory be a +20% FAS day.

    The tricky part is Friday am because what should happen is a massive GAP up in the AM and then a hard reversal down.

    But Friday has more risk in it................high risk high reward.

    I think initially that Monday am either we see an open a bit down and pressure or a gap up that quickly fades. So a GAP up short side play has great odds of success.

    Thoughts, considerations, flames?

    (Because we want to learn!)

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