TCM Notes : 5/28/09

• Distribution day number 5 took place in the Nasdaq today, but it still closed above it's 200dma. Everybody else remained the same with : 4 for Dow, 3 for SP500, and 2 for NYSE. IBD says once you get 5 distribution days it's a level that historically marks a top. Well we'll see. It does make sense since the Nasdaq led the markets higher it can most certainly take us lower. Everything reversed on the lackluster auction on some 10yr Treasuries. 10yr yield stands at 3.72% now. Up some 17bp in the afternoon alone. So this is a problem for the Fed who is trying to get rates lower to help aid the housing market. There is no problem for those who have been holding strong and long on TBT. I've written about it several times and it filled it's 53 gap from back in November on Tuesday. I expect this thing to test it's all time highs at some point. Like all the other ultra shorts this one should have some massive violent move to the upside and that will be the end of it. Until that time.....the beat rolls on.
• Keep those eyes focused on those retracement levels. These will be the best places to take a good risk/reward trade set up.
• Almost forgot about Moody's. See how they backed off and reaffirmed the AAA rating of the US. They understand what the consequences would be if they cut that rating. Traders are still pushing short sales in the name as David Einhorn said in a conference yesterday that he's shorting the name. Of course Chanos was the early mover about 4 years ago on the name.