Financial history doesn't repeat itself, but it often rhymes. You can't be stupid enough to trade off anything I say.... I'm lucky they let me out of the straight-jacket long enough to trade.

J. P. Morgan

"Sell down to your sleeping point"

Monday, March 16, 2009

A chart

We are still within our trade channel. There is also another traded channel, which I ... Well it's a more rational trade channel, the lower boundary indicated by that red line.

The market goes through 2 stages, Impulse stages and consolidation stages. After the bears got their nuts chopped off for 5 days trying to hold overnight... I doubt that is going to happen for a while.(though behaviorally it seems like a good time to try it.).

We are in a strong uptrend, quantifiable edges has pointed to a strong 20 day trend, which is what I expect.

The 50DMA is 40 pts up from here or so. Which could point to a possible wave 4 pullback(or sideways motion) on monday, we are overbought, and could move some sideways... BUT in this consolidation we have buy signal re-establish itself on the SMI. The MFI had a solid pull back and is still not a sell....

Let us talk about sentiment, we still have ROTTEN sentiment.... EVERYBODY IS A BEAR... and they are angry to have missed that bottom ANGRY!!!

SO.... maybe pull back to the red line.... maybe... but this thing just feels like we are going up hard... And the only decent consolidation should be at the 50 dma

No comments:

New Economic Indicators and Releases

What does Blue Horse shoe love?- Blog search of "BHL"