Something Interesting - 12/8/11

Here is Gartman's interview with cnbc. There are not too many people i trust in the market. Gartman is surely on the list. (He is very expensive. :( )




Here is the Colby letter:

The S&P 500 Composite (SPX: 1,261.01) absolute price rose to challenge the highs of the previous 2 trading days and its 200-day SMA on 12/7/11, only to reverse to the downside in the final minutes, again failing the test of resistance.

As I have been noting here, SPX appears to be encountering resistance near its 200-day SMA, now at 1264.00 and declining fractionally every day.

Because the 200-day SMA is so widely followed, predatory traders might try to plant more late-day false rumors, which appear to be mindlessly reported by the gullible media, in an effort to close SPX above its 200-day SMA, in order to trigger buy orders to sell into. Note that since 1/3/2000, of the 106 instances of the SPX closing above or below its 200-day SMA, 88% of the 200-day SMA crossover signals would have resulted in a loss, going both long and short, following the trend in the direction of the crossover.

Short-term price momentum oscillators have stalled out. Longer term, the 50-day SMA has remained bearishly below the 200-day SMA every day since 8/12/11.

Do you see what he is saying? Last time it was the FT rumor. Yesterday it was the NIKKEI. Yes, it is dirty. All things are ON. BUT, what are you expecting?

On Economy itself.
Here is a good summary of the EUR crisis by Reuter.
http://graphics.thomsonreuters.com/11/1 ... tings.html

More things I am reading. Here is  
"Why Gold Stocks Have Underperformed Gold"