I think chart has as much validity as anything else I have seen. I hav eenough data points to have decent confidence the blue trendline which was broken WAS IMPORTANT and many times (not just end of quater marking up like today for the banksters) these breaks get BACK TESTED.....so we will see how this plays out.
Each corresponding VIX peak brought a ST SPX Bottom.
We have a 4 months descending MOMO tops from our MACD indicator....obviously not a sign of strength...a good sized divergence.
We have 4 data points that form the RED SUPPORT LINE from those 4 lows....where PRICE bounced.
SO IMHO we are between these 2 areas and ONE WILL WIN OUT.
The GDP # is a BS bogus hyped number, now all the officials can run around and tell you how great the plan is, how much better everything is getting....and YOU look around and say WHAT?
AFTER THE 911 attacks consumer confidence was around 87, people were afraid to fly, go to malls, go outside....fear all over the place.....NOW after 7 months of rally, after 60% historic rise....COnsumer sentiment is 47 YES 47 .
Good luck with this.....I stay unmoven and I have done pretty well timing my shorts and cover. I am trying to get those that see this for what it is to understand....the market is going to rip as many a new one it can......we have oversold condition, another 88% plus down volume day....we talked about the GDP wildcard and the reaction, end of qtr fraudster games to PUMP up their payouts and performance...
so I took my gains, met my goals, didnt get greedy....another winning trade.....only thing I could have done better was to get on the other team and play the bounces.....I'm working on that....my system needs a bit more tweaking and I need to block out the truth of reality and think as the other team does......I would have closed that trade today at close or on ANY pop FRI
IMHO the BREAK IS REAL.....the rally is not
D
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