Qick Market Thoughts 9_28_10

Consumer Confidence Number SUCKED today… there is no other way to put it and yet the securities market finished up. Yeah, yaeh.. the dollar was down contributing to the swing in the market.. whatever – the dollar was down because of POMO, which in turn, moves the market up. Then the machines kicked in to create artificial exuberance.

So, what do we do? Simple, if the retail investors are on the sidelines, then those of us that are left need to play with the machines and the FED. Until the retail trader comes back (currently 30% less than usual volume from retail), the FED is just as important as the technicals and more important than the fundamentals.

Great summary of what happened today and why not to bet against the market on POMO days… we may pull back tomorrow (no POMO), but with more POMOs around the corner, be careful going short the market and let’s stick to the day to day picture. Next POMO day is Thursday. POMO may not be able to support the markets against scheduled news out of China, GDP numbers, and Jobless Claims.

POMO as seen through AAPL (286.86 ↓-1.48%), AMZN (159.70 ↑0.21%) intraday charts today.

Happy trading. See you tomorrow.. slow news day, so let’s play the hell out of those technicals. Focus will start shifting towards the data points on Thursday and Friday, so I expect a low volume day tomorrow and I assume we’ll be down a little. As you know, we failed to break through 1150 in the SPX today. The machines started selling there again in late afternoon. Might be tough to get through this level tomorrow. However, I’m not ready to short the market, however. Gotta play what’s in front of you – as of right now, we’re still technically in an uptrend.

My current sentiment is slightly bearish and heavily in cash until we get some good news or 1150 is broken with volume.

I’ll be in the BullsOnWallStreet trading room all day tomorrow. Stop by and let’s make some money!