Next Friday

We have expiration next friday and mergers have been crazy. The world is buying dollars. It (the dollar) has been holding support very well. Oil and Gold looked weak to me. Bonds and comodities had a bearish day in my opinion.



We have divergence number one. This is a non confirmation in dow theory. Transports new high and dow no new high.



We also have divergence number two. Which is more of a sentiment divergence. This was the small speculator index. They are extremely bearish. When small speculators have been bearish this has been bullish for the market.



Also these notes:



The put call ratio for individual stocks was very low. When equity calls are being bought it isn't nescessary bearish. It could mean some stocks need a parabolic move to puke up some shorts and create buyers.



The put call ratio was very high for the indices. This means that big money managers are hedging thier long positions. Or the smart money is buying puts on the market as a whole.



It also very hard for me to cut my shorts at such move. I would rather wait out the storm unless we close above 10,725.