Wednesday, October 22, 2014

Dead Cat Bounce? Meow

This bounce back don't feel right to me.

S&P500: 1932
Nasdaq: 3942
R2K: 1106

00.46AM, 22 Oct 2014

#timestamp

I gotta admit, I was a bit greedy to not take profit on my shorts last week when we were clearly oversold, but I was holding out for the waterfall decline, which of course, might never come.

That said, with today being the 3rd last day ever of POMO unless QE4EVA is unleashed, things might take a fundamental shift very fast and very soon. I just read a DB report by the cool-headed Jim Reid about the amount of CB money that has been injected. Looks like the party might be ending soon. Perhaps then, bad news might actually be bad news once again.

Technically, we're not oversold anymore, but neither are we strongly overbought.

Anyway, don't mind my ramblings. I'm being squeezed now like nobody's business! Sour grapes, probably, haha!

2 comments:

  1. Hi
    What is pomo. Pls enlighten me.
    Thanks

    ReplyDelete
    Replies
    1. Hi Anon,

      POMO is permanent open market operations, a.k.a. Quantitative Easing. The Fed uses POMO to execute their QE program, but they are stopping already, unless they come up with another round of QE, haha

      Delete

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