Thursday, September 22, 2011

A great unload

8:34 am (Hawaii) That was dizzying, almost. The Dow Jones gained 100 points in four minutes, from roughly -450 to -350. I wouldn't have noticed except I've been watching FAZ all morning, and it went from just below 73 to sub-70 in that same time span. Huge 1-minute candlesticks, bearish, like someone with a major position had to unload regardless of price.

It was then that CNBC noted that a report in the Financial Times mentioned the possibility of the EU speeding up the whole process dealing with sovereign debt. From there, FAZ stabilized and the Dow sold off again. FAZ eventually ran back to 72+ and is currently at 71.44.

I don't think the unloading is over. FAZ gained 14% yesterday and even now is still up 9.4% for the day. The heavy selling in the past 20 minutes has been met by almost as heavy buying. This is probably going to turn out to be better to leave the minute-by-minute viewing and keep a stop order in — a very wide one. Just shows how eager traders are to cash in these profits on the slightest hint of bullish news for US or Euro banks.

Longer term, I'm convinced FAZ surpasses recent highs of 73+ and 81+ before hitting 100. For now, the fluctuations have me involved with a lot of tweaking in the near term. Adding more shares this morning was a possibility, but I left that alone. Getting out in the near term might work best. I didn't get in early (yesterday at 65) and the market is severely oversold at this point.
FAZ 1-minute chart
Truly a spaz, keep the hardhats on

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