Monday, September 26, 2011

Calling a bottom......really?

I've read a bunch of stuff tonight from folks suggesting the lows are in, or at least the lows for a while, of course hedging that we will go back down eventually. Most of the reasoning is "we had every chance to take out the lows, and we didn't. We stayed firm Friday and Monday's action was bullish".

Monday's action was mildly bullish, not even good. Every chance to go down? We got crushed Wednesday and Thursday last week, we are taking a breather.

Here are my reasons why it wasn't even close to a great day for the Bulls on Monday:

1) Where was the volume?

2) Where was the NASDAQ 100? It lagged after being the clear leader these past few weeks.

Need any more reasons? I don't.

I think that we were up Monday because there is a plan (whether its good bad or indifferent doesn't matter) to save the Eurozone, and we have some Window dressing kicking in.

I'm not calling this a bottom yet. I still think we will take out the lows and at a minimum test 108.84 on the SPY. For now, I'm calling it a dead rat bounce.

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