3 MONSTROUSLY POSITIVE TECHNICAL EVENTS LEADING TO AN ORGY OF BULLISHNESS
The end of the consolidation fell onto the lap of the bulls today...right on schedule. That schedule was mentioned here and on Twitter/Stocktwits numerous times since last week:
And here again http://www.zenpenny.com/wp-content/uploads/2012/08/DOW6.gif
And on Sunday for good measure http://www.zenpenny.com/wp-content/uploads/2012/09/SPY.gif
The significance of today's move up should not be taken lightly. It was perhaps the most significant technical event since the low for the year in early June.
I would say that it was THE most significant technical event of the year if the Dow had decided to join in a break of the ever-important pink trajectory, pictured here.
What we got today was the following:
1. The S&P 500 screamed upwards. A fantastic breakout above a tight consolidation range.
2. The Nasdaq Comp destroyed its generational trajectories. Those trajectory points are picture here. More significantly that destruction of the trajectory points happened on an enormous expansion of the daily range. Makes it all the more significant.
3. The VIX got pummeled right as it touched its generational trajectory. I'll have a review of that in the weekend chart review on Sunday.
The leaders in this orgy of bullishness: Semiconductors, financials and small-caps. The nefarious threesome that always shows up to these events, bringing the full cadre of heat to the awe-inspired spectators.
You know who I see missing out on this rally? All the supposed braniacs that like to think more than they like to make money. Those who put intellectual ego ahead of what the market is telling them. I apologize in advance, but you have to be A) a mouth-breathing invalid B) a knuckle dragging troglodyte or C) a relative newcomer to investing to have not seen the fact that this market was begging for this outcome.
Since a majority of those I see are not newcomers by any stretch, I have to imagine that Wall Street is a breeding ground for invalids and troglodytes. A fact that I would be 100% content with if only they would admit their tendency towards erroneous judgement (mouth-breathing) and foolish behavior (knuckle dragging).
Instead what you get is a vast array of elaborate justifications for how, what and why of a rigged system that only faces one eventuality: destruction. You get maniacal reasoning, coated in pseudo-intellectual jargon to somehow validate the erroneous assessment of those who keep getting the markets wrong.
As we have found out over the past several years, there are lots of ugly things about the financial markets. The one elegant trait. That piece of beauty that can never be denied is the fact that you can't lie. The market will grade you immediately, regardless of class, creed or gender. Your work will be exposed for what it is as soon as you put money to work behind your efforts.
All the meanwhile, the behavior of those humanoids among us who have managed to blend in will be tolerated. They are, after all, a necessary component of the market ecosystem. Their tracks easily discernible by the feeling of hot breath and knuckle prints, stretching for miles. Watch for them. And most importantly, be wary of the song they sing.
