August 11, 2011 (You Guessed It)

I actually was thinking of not commenting on the movements of this one person or entity who plays the S&P 500 just to save some time, since the numbers of the Nasdaq 100 are what's really important as far as looking for important lows or highs. But it's just so hysterical, I have to continue. So we had another giant up day today, after yesterday's giant down day coming after this guy (I'll call him Mr. Knee-Jerk from now on) reduced his down money. And, you guessed it, he jumped big-time into the down side. The numbers so far this week for the S&P 500:

Monday: 70.23/145.18 (he might be totally out here or maybe a little on the down side, and we have a modest down day, relatively speaking)

Tuesday: 64.97/231.50 (he jumps in on the down side, and we have a huge up day)

Wednesday: 70.24/181.59 (looks like he sells some of his down position, just in time to miss a huge down day)

Today, Thursday: 69.96/262.77 (this time he throws the kitchen sink at the down side, and of course we have another monster up day)

How much abuse can this guy take? Will he keep his down position into tomorrow after losing 7-1/2% today? We shall see.

And for the all-important Nasdaq 100 numbers, they once again remained about the same today, even slightly more positive, after Wednesday's big down day. Just showing the final number when you divide the larger number by the smaller number for the Nasdaq 100:

Monday: 2.39

Tuesday: 2.69

Wednesday: 2.55

Today, Thursday: 2.65

So once again showing no fear, even after the big move down in the markets we've had. I say this is very bad news for the markets. Again, there is no way we've reached a bottom with these numbers, even a temporary bottom, let alone an important bottom. And I should define what I mean by temporary bottom. By temporary bottom, I mean a low where, if you look at a charting for the year, this low would stand out, although not a very, very important low like we had in 2008 or 2009, whatever it was, after the last big drop. We can have rallies at any time lasting days to even a week or two, but I'm not calling that a temporary bottom. So I'm saying even if we continue to rally for the next day or two or three, or even a week or two, which I doubt, but it's possible, we will turn back down and continue down to lower lows. My blog guarantees it. (Always remember, I could be wrong. Judge for yourself.)

By the way, I heard in Europe they're thinking of banning short selling. I hope I'm showing that that would be an extremely poor idea. I remember they did it in our last big move down, in parts of the markets. It's the shorts jumping on the bandwagon that stops a big move down.

Rob