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The Prop Jobs
March 27th, 2009 at 2:39pm · 2 Comments
As a comment on today’s earlier thread noted – “the prop jobs are impressive.” Yes, the ubiquitous ‘they’ seem to be attempting to to push prices higher all day. But our volume oscillator tells the true story, which is that there is no real buying of stocks accompanying these futures buying squalls. As such, these rallies are doomed to fail.
Tags: General Market Commentary · Market Internals · S&P 500
2 responses so far ↓
1 LovesBeta // Mar 27, 2009 at 3:22 pm
This might be just for the end of quarter window dressing. I am short; However, I have been burned before ignoring price action by itself, and price seems more or less holding for now within the past five days window. I would figure price will likely hold till they are done squaring their books (NASDAQ yesterday almost had a gain for the first quarter
But, we could also break out just by price action; where then it would likely bring new volume. Having said that, I am with you Chris on the toppiness of the action, specially in the context of the overbought situation.
2 LovesBeta // Mar 28, 2009 at 3:08 pm
To add to the divergence indication, except two days, the volume has been going down as this rally has progressed:
http://i713.photobucket.com/albums/ww139/LovesBeta/SnPVolumeMarch28.jpg
Peculiar though was the action around the 50dma (in orange circles), that had a break out look to it; But that could have been a fake move since the break out through 50dma was on lower volume than the first attempt; but not sure either way.
Not useful for short term trading, and mostly reflecting Financials problems that could change with M2M accounting (could come down to 50), is the S&P P/E. But still the value could cause some people to think twice, as it is projected to be almost 200 for the second quarter.
www2.standardandpoors.com/spf/xls/index/SP500EPSEST.XLS (Excel spread sheet)
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