Today's action was driven by options expiration manipulation. I won't read much in to it. The market came close to breaching last week's lows but then it rallied. It should be no surprise to some one who knows how things get manipulated in the expiration week.
I can sense the storm brewing but can't see it yet. Next week is crucial. I am positive that the market is heading towards making new lows. The smart money is doing a brilliant job of sucking in suckers by manufacturing fake rallies.
I said on Oct 8th that GOOG is flirting with disaster, it can go to 310 soon. Since I mentioned it, it visited 310 twice and bounced back from that level. It announced earnings after hours today. It traded up to 390 after the earnings announcement i.e. a jump of almost 50 after hours. The reason for this elation is that they were able to beat the lowered estimates by reducing the capex spending. This is why I say some suckers never learn. Let's see if they are right this time. I know history is not on their side.
4 comments:
Hi Vinaydh,
Nice Blog, excellent insights. Thanks for sharing you thoughts!
With all due respect; The odds to a trend reversion now is clearly very high so your post explain just well what caused the short rally and reminds me of a song:
Five to one, baby
One in five
No one here gets out alive, now
You get yours, baby
I'll get mine
Gonna make it, baby
If we try
-The doors
Fernando
Thanks again!
It is refreshing to see somebody really sharing insights that markets would go down . Hope people listen and protect their life's savings and exercise caution.
My pleasure Fernando and thanks for liking the blog.
Thanks m. Exactly my thought. Capital preservation is paramount right now. It's easy to make up for the lost opportunity but not the lost capital
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