Bear Trap Archive
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The World is Coming to an End. Why am I not Afraid?
The stock market is stealing everybody’s earnings lately (even mine). The stock market slump has been fast and brutal. Its current six week decline is the longest since 2001 and that is saying a lot. I will be watching the SP-500 1250 levels. If that level does not hold I will become a perma-bear and [...] -
Interesting Stocks for 6/30/2010.
Today we are looking at the following longs with interest: DISCA: Discovery Communications. Tested support with low volume. It seems that the bearish action yesterday was generated by high frequency trading algorithms hunting the trade stops in the market place. CMG: Chipotle Mexican Grill. Will it bounce with the rest of the market? Stock market [...] -
Market Restesting the February Lows.
The stock market is a tough mother-efer. Pardon our french. We have not seen an inverse ETF turn bullish since the week of April 19. Yet, the indexes turned against our longs with force today. It is our opinion that this correction does not feel bearish. We are at support in two of the three [...] -
The Short Power.
I read yesterday on Twitter that the current correction is a bear trap. A bear trap is a correction in stock prices that institutions create to purchase more shares at lower prices. The rumor is that institutions want to force prices down to the 200 day moving average line on the major indexes and then [...]