The Jan 2000 top was marked by a Diamond top formation. Well today it has formed again!
The Dow, S&P, and Canadian stock index have all formed a diamond top. And it doesn't sit well for the markets.
If we break 10825, the average decline from a diamond top formation is 21%. So Good Luck market bulls.
For the bulls to press on, we need to see another attempt to break 10,950.
Tuesday, March 30, 2010
Sunday, March 28, 2010
Weekly Quote on US Spending
"They say that when the party gets going you need to take the punch bowl away. Well this is the dullest party I've ever been to and I'm an Accountant."
Wednesday, March 17, 2010
Wednesday's Quote
"Bear Markets want to hurt everyone."
It is quite typical for significant tops to announce themselves early, and actually occur late.This is a tool of Bear Markets to kill and discourage shorts, because Bear Markets do not want anyone to make money, Longs or Shorts.
It is quite typical for significant tops to announce themselves early, and actually occur late.This is a tool of Bear Markets to kill and discourage shorts, because Bear Markets do not want anyone to make money, Longs or Shorts.
Tuesday, March 16, 2010
NEW UPDATE: to clarify previous pot
If we do not get a sell off soon, i have reason to believe we rally to 11,100 in the next three weeks into mid april.
Major tops usually take a lot longer time to transpire than we anticipate. So, even though indicators are signaling a sell off soon, that move may be delayed.
We have a bearish head and shoulders pattern in the GDX (Gold miners) which leads me to believe gold will sell off during its seasonal bearish time of year. More often than not Gold sells off from May to August.
In summary: This market looks like it can make new highs. However, in the not to distant future (three - four weeks) I believe we correct for 6 months, all the way down to 8,500 level.
Major tops usually take a lot longer time to transpire than we anticipate. So, even though indicators are signaling a sell off soon, that move may be delayed.
We have a bearish head and shoulders pattern in the GDX (Gold miners) which leads me to believe gold will sell off during its seasonal bearish time of year. More often than not Gold sells off from May to August.
In summary: This market looks like it can make new highs. However, in the not to distant future (three - four weeks) I believe we correct for 6 months, all the way down to 8,500 level.
Monday, March 15, 2010
A Major Move IS DUE!
The EURO vs Dollar looks to be setup for a major move after consolidating for a number of weeks.
Even though it's probably more prudent to wait, i'm leaning towards more weakness in the Euro. My hunch is tomorrow after the FOMC announcement, the dollar will "FIRM UP" pretty dramatically. This coincidentally comes in line with the spring equinox trend change move that is due in the markets.
So, the dollar will get stronger and the markets will tank. Still looking for a catalyst for sellers to come into this market as this light buying raises serious doubt that a rally further can continue.
Last week was also the 5th lightest volume week ever! Not to mention we had the longest strip of up days in a 20 years.
Even though it's probably more prudent to wait, i'm leaning towards more weakness in the Euro. My hunch is tomorrow after the FOMC announcement, the dollar will "FIRM UP" pretty dramatically. This coincidentally comes in line with the spring equinox trend change move that is due in the markets.
So, the dollar will get stronger and the markets will tank. Still looking for a catalyst for sellers to come into this market as this light buying raises serious doubt that a rally further can continue.
Last week was also the 5th lightest volume week ever! Not to mention we had the longest strip of up days in a 20 years.
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