WE GOT THE BOUNCE NOW WHAT?

Blogger at the moment will not let me load any charts, and I have lost my patience at this point. Sometimes Blogger just does not work, what can I say.

I wanted to post a chart today that shows that the Bernanke 500 has now reached a point where my COT Synthetic indicator is in the sell zone. As I have mentioned in here previously, one of the flaws with that indicator is that it switches to the opposite extreme too quickly on bounces. I still have not figured out the best way to use it. The weekly target areas I have for shorts are still quite a bit above, so I am not looking at shorting this yet. Even though I am sure Ben is tired of day trading stocks at this point, I do still feel there is no way the Fed is going to walk away from propping up the stock market here. They know this thing will collapse instantly the second they stop manipulating it, and that is bad politics right now.

As a result it would not surprise me one bit if this bounce becomes a ramp up that just accelerates. I only short weakness so if that happens no shorts will be entered. I do not have a trade in either direction in the indexes, but think short term traders should be long right now. As to the Bond market which I have been looking for a short entry, it has been holding strong and I have not done anything there yet. The possibility certainly exists that we are going down Japan's well chronicled road where we will have low rates for a very long time. As we watch the stock rebound, the fact that the Bond market is not declining yet is indicative of strength. When our hero Ben talks today maybe something will change, but it does seem to be an assumed given that what he says will be a lie. Isn't it a sad day when most of the public assumes that a speech by the head of our Federal Reserve will be filled with lies, and further that it is acceptable?

I am flat right at the moment. I have been looking to buy the DX and short the currencies, and do not have any signals yet. I think the metals have now bounced too much to be shorts anymore so it is likely they are buys on pullbacks now.

Sorry for the brief post