November 17th After The Bell Review

History repeats. The eternal optimism that is Wall Street is slowly fading into desperation. As the fallout from MF Global continues to spread, duck n cover becomes the trade.

We see today looking at the Financial ETF FAS, able to blow right past the line in the sand with no problem. A repeat of July-August seems to be in the making as I have noted 1-2-3 set up. Look for financials to bully back next week up to the declining 15 day sma, before the real fireworks begin. The bulls time is about up.
Today OIL gave us sell confirmation that we talked about last week. The DOJI candle followed by a long down day selling pressure sets up the pull back. CCI(30) is still in an uptrend, so for now we are looking to see what happens at the 38% retrace line in the sand. We should expect a bounce at that level.


Tim Kathlina