Thursday, July 21, 2011

Wall Street Outlook: Dow Jones Off 16 Pointts After Rallying 1.6% In The Previous Day, 21-07-2011

Wall Streeet recap: Dow Jones off 16 points after rallying 1.6% in the previous day

The Dow slipped 15 points after surging 1.6% (the biggest in 2011) in the previous session as investors are awaiting firmer resolutions on the ongoing jitters over the debt ceiling talks and fears over the euro zone crisis.

Meanwhile, banks led a rebound in European markets on positive newsflow that the euro zone bailout fund could be used to buy secondary market bonds and extend credit to in-need countries.

After the bell, Intel reported results that topped estimates.

Daily Dow Jones Is Moving Range Bound Within 12300 -12700 Points Pending Debt Credit Solution


1 comment:

  1. Let me explain one time. Much of the market is set up to deceive, by nature, just like a cheetah's camouflage. Sure, there are illegal, blatant, collusion type manipulations of the market, but that is not what I am talking about.

    Certain patterns recur. The "smart guys" see a support or resistance and they place a leveraged bet. Then after 3 to 6 ---5 minute bars of "waffling around, confirming trend”, whatever, then the ticker bounces back to hit the same line again, maybe even pop that line a little harder/deeper. By then the "smart" money has moved their stops to breakeven, proud that they "predicted the market". Then they get stopped out. And then they don't go back in until the trend is “confirmed” this case maybe around 67.63, at that point expect a sharp snap back to the upside, send the retail running for the buy back button, as in “Sheesh, I knew this short position was going to be trouble”. Then maybe a Bearish Engulfing or a Dark Cloud cover and THEN when retail been whipsawed and had their lunch money taken, THEN the real move may commence.

    Example here in my favorite risk on risk on indicator NZD/JPY


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