The putative triangle may be turning into a trading range, and, based on the squirrel markets of the last few days, it may also be headed for that test of the low. If we were looking at it as a triangle then the upside breakout (fake) followed by the downside breakout, followed by the euphoric 400 point day qualifies as a breakout down, with a rally back to the breakout line. Given the pitiful (and pitiable) reactions of the Bush administration to the coffin corner state of the nation we see no end to the present trend. (Down.)
It is not unusual to see minor pattern differences between the INDU and the DIA. The former is the decision making tool, implemented in the DIA.The rapid fizzle of Tuesday’s roman candle day is …. pitiful?
Meanwhile our readers are rolling in profits because they have taken our letters seriously and are long OIL, GLD, SLV, IEF and out of any stock which has broken its uptrend.
These are not illustrated here. No need to.
The consequences of not honoring sell signals is illustrated every year. Enron one minute, Bear Stearns the next.As our readers know we generally do not go hunting for these issues. But, when a reader sends a query on a symbol we do take a look at it and comment if there is something interesting.
We have pointed out XLF in the past. Notice the violation of the horizontal line and the pullback to it — the same as in the BXC case. A common technical phenomenon.We have not said much about the recession talk and the subprime mess and the budget deficit as we couldn’t get it out without turing to blue obscenities. The situation is, of course, an obscenity. While plummeting from the coffin corner the pilot says everything’s ok and the relevant (or irrelevant) officials look for band aids and talk about preventing a similar situation in the future.