No Mercy

Hello my Investors, Traders and Readers friends.  Today, I would like to share with you some ideas and concepts with regard to the current market situation. I would like to evaluate this point and prepares for what may happen in the next few weeks or months. To do this, I have divided the subjects in 17 points:


1 .-  The fall of the market during the last week (and partially in the previous also) has been violent, widespread and growing volumes of shares.
2 .- During this decline, have been broken a number of important support levels.
3 .- In general, companies have reported good results during the earning season.
4 .- In recent weeks, macroeconomic information that was available to the market was negative. I refer mainly to the GDP, ISM and Job reports.
5 .- The problem of the debt ceiling was resolved incompetently. The delay in reaching a solution generates a lot uncertainty and wear on the main political leaders.
6.- Rumors in relation to the U.S. credit rating downgrade, was present throughout the duration of mishandling the issue of debt ceiling. Unfortunately, the Friday afternoon S & P confirmed the bad news. This is fuel for the fire.
7 .- The bad news from Europe contributed to market jitters.
8 .- The market is oversold.
9 .- The first good (relative) news came on Friday with the unemployment data. By then, the market was already very upset.
10 .- There is a perception that investors are preferring to keep cash at the prospect of the arrival of bad times.
11 .- The above conditions would favor the market rebound.

12 .- The support levels were broken so important, it most likely is this rebound is only in the short term.
13 .- In my opinion, any rallies are in now should serve two purposes: to sell long positions and take short positions. To do otherwise today it seems very dangerous.
14 .- I think it is very important watch about what might happen to commodities. If gold, fuel, agricultural and other important commodities begin to correct significantly, the fall of the market may be even more pronounced.
15 .- It is essential to be aware of the support and resistance levels of the major markets.
16 .- In my opinion, it is appropriate to review the ETF's operating in the opposite direction to the markets. (see next post). Some of these are breaking very important resistance levels.
17 .- Finally, I would remind you that ultimately, no matter the direction taken by the market, what matters is the side that we put ourselves.