Posted by: stockscooter | May 29, 2012

Runaway Gap?

The S&P, just gapped higher this morning.  Technically, no one would have bought this index this morning, based upon hourly data ending last week.  It reminds me of my post about the dollar surging higher on a gap.  When a security gaps like this, when the big money managers and huge traders know it shouldn’t, and they are typically betting against such a gap, a huge short-covering will follow.  Watch the sky here, because things could become explosive for the S&P 500, right when you think it shouldn’t.  A huge upward run in the next two days could turn my monthly indicators to bullish from bearish, as we end the month.  High risk/High volatility trading is at hand, so be careful out there.  This thing could rip in either direction, at any time.  BTW, this could be signaling a start to a 5th wave of the rally that started in October 2011. For this to happen, there must be big news coming.  If it is, the insiders, such as politicians and their buddies, must be the ones loading-up their shopping carts at these prices. because no one else would take this risky bet, with traditional information.

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