If you have ever heard "gaps usually get filled" maybe this is very good example.
Falling from $18 to $13 left HOLE as you can see, not an orderly zig zag move but an ubrupt one that left $18 in the dust....you can see GAP, open are on chart.....then rise from $13 to almost $18....for most part filling GAP or IN where prices were missed on gapper down.
That accomplished......prices have moved back down.....that would have been a nice play if managed properly....even if didnt work out, one could have enterred on higher low and used previous low as stop loss....with exit strategy perhaps the filling of gap, once done taken profits.
Just my 2 cents on the popular talk about gaps....and perhaps one example.
DOW under pressure today, what evidence of improving housing or economy is evident?
D
4 comments:
nice example, thanks, 1305 proved to be good resistance in the SPX.
On Sept. 7, 2006, Nouriel Roubini, an economics professor at New York University, stood before an audience of economists at the International Monetary Fund and announced that a crisis was brewing. In the coming months and years, he warned, the United States was likely to face a once-in-a-lifetime housing bust, an oil shock, sharply declining consumer confidence and, ultimately, a deep recession. He laid out a bleak sequence of events: homeowners defaulting on mortgages, trillions of dollars of mortgage-backed securities unraveling worldwide and the global financial system shuddering to a halt. These developments, he went on, could cripple or destroy hedge funds, investment banks and other major financial institutions like Fannie Mae and Freddie Mac.
The audience seemed skeptical, even dismissive. As Roubini stepped down from the lectern after his talk, the moderator of the event quipped, "I think perhaps we will need a stiff drink after that." People laughed -- and not without reason. At the time, unemployment and inflation remained low, and the economy, while weak, was still growing, despite rising oil prices and a softening housing market. And then there was the espouser of doom himself: Roubini was known to be a perpetual pessimist, what economists call a "permabear." When the economist Anirvan Banerji delivered his response to Roubini's talk, he noted that Roubini's predictions did not make use of mathematical models and dismissed his hunches as those of a career naysayer.
But Roubini was soon vindicated. In the year that followed, subprime lenders began entering bankruptcy, hedge funds began going under and the stock market plunged. There was declining employment, a deteriorating dollar, ever-increasing evidence of a huge housing bust and a growing air of panic in financial markets as the credit crisis deepened. By late summer, the Federal Reserve was rushing to the rescue, making the first of many unorthodox interventions in the economy, including cutting the lending rate by 50 basis points and buying up tens of billions of dollars in mortgage-backed securities. When Roubini returned to the I.M.F. last September, he delivered a second talk, predicting a growing crisis of solvency that would infect every sector of the financial system. This time, no one laughed. "He sounded like a madman in 2006," recalls the I.M.F. economist Prakash Loungani, who invited Roubini on both occasions. "He was a prophet when he returned in 2007."
Over the past year, whenever optimists have declared the worst of the economic crisis behind us, Roubini has countered with steadfast pessimism. In February, when the conventional wisdom held that the venerable investment firms of Wall Street would weather the crisis, Roubini warned that one or more of them would go "belly up" -- and six weeks later, Bear Stearns collapsed. Following the Fed's further extraordinary actions in the spring -- including making lines of credit available to selected investment banks and brokerage houses -- many economists made note of the ensuing economic rally and proclaimed the credit crisis over and a recession averted. Roubini, who dismissed the rally as nothing more than a "delusional complacency" encouraged by a "bunch of self-serving spinmasters," stuck to his script of "nightmare" events: waves of corporate bankrupticies, collapses in markets like commercial real estate and municipal bonds and, most alarming, the possible bankruptcy of a large regional or national bank that would trigger a panic by depositors. Not all of these developments have come to pass (and perhaps never will), but the demise last month of the California bank IndyMac -- one of the largest such failures in U.S. history -- drew only more attention to Roubini's seeming prescience.
what is up with these freaks in washington, this has got to stop.1 billion? Come on~~
The Senate fixture from Delaware, Joe Biden, has promised to give your money to the tin horn dictator Saakashvili and Georgia.
“The United States will consider providing $1 billion in emergency aid to Georgia, a top U.S. lawmaker said Monday on his return from a visit to the conflict-torn nation,” reports Dow Jones Newswires. “When Congress reconvenes, I intend to work with the administration to seek Congressional approval for $1 billion in emergency assistance for Georgia,” said Biden. “This money will help the people of Georgia recover from the damage that has been inflicted on their economy and send a clear message that the United States will not abandon this young democracy.”
Actually, Biden has promised to jack the debt up another billion or so. The U.S. debt is well over a $100 trillion, so what’s a mere billion? The government says the debt is only $10 trillion, but the Federal Reserve, as in Federal Express, says it’s closer to $100 trillion, which means it is over that amount.
At any rate, Biden is simply taking orders from the globalists. Biden is head of the Senate Foreign Relations Committee. It might as well be called the Council on Foreign Relations Committee because that’s where the marching orders come from.
Russia punched some pretty big holes in the globalist plan for little Georgia, the NED-CIA created client state, so the American people have to ante up.
Next up, Poland. After Russia takes out Bush’s “missile defense system,” we’ll be called upon to make up the difference.
Playing with fire there the idiots!
Pulled my damn hamstring.....
D
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