We are headed for a big down opening today after the NFP report. As you can see this chart shows a buy on it, what does that mean? How could that be there when I was so bearish a few days ago, basically Friday?
That buy signal is a short term mechanical timing signal based on the Vix and a few other things, it is not a long term entry. If you look at the bottom of the chart, you will see the oscillator turning down confirming the down momentum we are obviously seeing in price. Bigger picture for a downside move this is what we want to see. However................
The gap down open we are about to get could very easily be reversed for a short term bounce, again the idea I have previously discussed about trapping the most people. I will be taking short term profits in some of the short positions I put on the other day on this open. This does not mean I am bullish, it means it is time to ring the register a bit on a big trade win. I will not be taking this buy signal and going long.
I was listening to one kid on CNBC this am after the number was released, who was essentially being consdescending to Bill Gross about his future outlook, when Bill Gross has been dead on correct with what he has done in recent months is so typical. I do not know why people can't set their ego's aside and just believe what they see. I know personally that when my ego gets in the way in trading, I lose money virtually every time. Who the hell is he but another liberal on the spin band wagon? The report was not good, any moron can see that. I would like to see his account statements to see how much money he makes or likely loses in trading with his profound insights that make him superior to Gross. Better yet he is probably an economist who does not even do any investing at all, and is wrong most of the time and it does not matter.
Gross has been right, why not give him his kudos and respect his opinion, even if you disagree. After all he has made billions from being right over time.