These last 3 days have been very challenging for me. Primarily due to technical problems at the desk. After losing connectivity to all exchanges on Sunday night, I spent 24 hours straight working with the folks at Trading Technologies to troubleshoot and solve the problem. Started with the guys in Singapore (thanks Francis!), then over to the folks in London (thanks Sean!), then to Chicago (thanks Paul!), and finally Dan the network man in Wisconsin! Long story short, we made an investment in a new router yesterady.
Anyway, the markets move - even without my participation! And move they did. I remain 100% short on the DOW and S&P - getting a little too deep in hole for my comfort. However, the moment of truth has arrived. We are in the 1060 zone and the DOW is head banging 9800. If we are going to reverse, my studies say NOW!
I offer one chart today and then some unrelated observations. First the chart, it is the daily chart of the S&P for the last 1 year or so.
All that matters here is that ANY TIME that we pierce (or even touch) the upper BB while it is near flat, we correct. This is the case as far back as I can see. In fact - you should look back on your own at the top of the prior bull run. You will see that this event was the lead indicator for all of the major drops that followed.
You can add the traditional fib-grid from the August 08 shelf and even through a pivot grid from the very base of the rally (post July consolidation). They all line up with the piercing of the top band. We will now correct.
The market may seem irrational to all right now, but I assure you - the smart money is selling and a correction is now underway.
Good luck.
1 comment:
Well, lets hope we correct. the q is, correct to where...
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