Obvious Support

• stevenplace
• June 18th, 2011

It’s Never That Easy

Technical analysis textbooks are always full of hindsight based patterns that were clean. It’s easy to analyze them after a pattern has fufilled.

But when you’re in the middle of it all, it’s a different story.

That’s because patterns can fail, or be messy, or human psychology gets in the way.

This week I try and sort through the mess with a longer term look at $SPY as well as an explanation of how trends end.

The key to remember is that we’ve been in a giant, mean-reverting range since the beginning of the year, and until there is evidence to the contrary, we need to assume that this theme will contine.

In this Week’s Stocktwits Brunch, we discuss:

• why the market didn’t capitulate due to $SPY put sellers
• what the greek bailouts really mean and a trade in $FXE
• how leading stocks have broken down, and how new ones are emerging, like $FTO, $HOC, $MRO, and $KKD of all things!
• your individual requests from the stream

You can watch the show below:

The information in this blog post represents my own opinions and does not contain a recommendation for any particular security or investment. I or my affiliates may hold positions or other interests in securities mentioned in the Blog, please see my Disclaimer page for my full disclaimer.

blog comments powered by Disqus