4 LONG-TERM CHARTS THAT WILL OPEN YOUR EYES AS TO WHERE THE INTENTIONS OF THIS MARKET LIE
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IN THIS MARKET ATTEMPTS TO CONVINCE INVESTORS TO SELL SHOULD BE BOUGHT
The same group of rudimentary-minded analysts of short-term movements in the markets are declaring today as an obvious end for the run we have experienced since the October lows. Citing among other things, the various sentiment measures such as AAII and the put/call ratio that have been consistently keeping investors off balance for the entirety of this rally. And then there is the obvious technical perfection of a bearish kind that came with today's steady decline into the close. It is as if the market is going out of its way to sell the bearish theme to the gaggle of price driven investors that occupy the current market. Why is the market so eagerly selling the message with today's technical debacle if its intentions are as nefarious as some think? Isn't the intention of the market to deceive through slight of hand as opposed to warn through blatant acts of violence against investors? This is the classic example of the obvious trade being the wrong trade in the market. The depth of my argument doesn't end there, however. Here is the technical picture from an alternative point of view: 1. I took the time to look at single bars in the Nasdaq Composite where the open was the high for the day, followed by a close at the lows for the day that exceeded a loss of 1.5% versus the previous close, as we experienced today. I excluded gap downs, as these are typically event driven as opposed to momentum driven declines. There have only been four prior incidences in 2013 prior to today. In all of the incidences to date, the market bottomed no more than 4 days after the blatantly bearish bar formed. Here is a look at the chart showing each example: click chart to enlarge 2. In yesterday's post, I touched on the fact that the Nasdaq 100 had not even come close to touching the trajectory in an attempt to retest. While this was very bullish behavior, the fact that we caved in today doesn't negate the bullish scenario at all. In fact, the market is now taking part in a standard retest of an important trajectory before moving higher. I would have preferred a continued consolidation followed by a move higher. This, however, still fulfills the bullish requirements for continuation to the upside: 3. The Russell has been leading the march down over the past several days. Take a close look as to what is dead ahead. The bottom end of the channel that has been supporting the...
5 CHARTS THAT ARE MIGHTIER THAN BOTH THE CUP AND THE SWORD FOR THE WEEK AHEAD
NASDAQ 100 S&P 500 DOW TRANSPORTS...
4 CHARTS DEMONSTRATING BULLISH EXHIBITIONISM FOR THE WEEKS AHEAD
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4 CHARTS THAT WILL BRING YOU JOY EVERY MORNING DURING THE WEEK AHEAD
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THE RESISTANCE LEVEL THAT MATTERS THE MOST FOR THE BULLISH CASE GOING FORWARD
We saw last week that the S&P 500 passed its test of support with a dramatic thrust off a key trajectory dating back to the 2009 lows. We now look for the next driver of the markets to propel it past the mud pit that has marked October trading, thus far. There is one level of overhead resistance that matters the most for the markets in Q4. It, of course, has to do with technology. And, of course, it has to do with the top 100 technology companies on the Nasdaq. In true Q4 fashion, the index that will usher in an end to this governmental led vacillation of the absurd variety is the Nasdaq 100. Here is the view: click chart to...
4 CHARTS THAT WILL ALLOW YOU TO PRESERVE AND PROTECT DURING THE WEEK AHEAD
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HERE IS THE ONLY CHART YOU WILL NEED FOR THE REST OF 2013
Symmetry matters in the markets. It is a point I have attempted to emphasize consistently over the past few years. The chart below shows about the most perfect example of symmetry in action during a bull market that you will ever see. The ramifications are bullish in nature, with a significant probability of this week's low being it for 2013. click chart to...
