Lots of questions floating around. Rocket ships generally leave earth (shooting at the moon) with an explosion. So do rallies. Wary of everything about this market we identify the day as a sort of doji — which candlestick analysts look at as a ideogram indicating equilibrium between buyers and sellers. Not exactly what you want for a rally, but it may be a sign. The signal would be stronger if the day had finished on the high. Nonetheless we know that an upwave is overdue here and this might be the first shot. We scaled out of some gold on the Variant 2 signal, still holding part of our position and doubled up in C which also jumped on the rocket. We are around the full moon. We don’t trade on astrological signals — (do we, Karnak?) but full and new moons get our attention because the loonies trade on the phases. C’s spurt was caused by their saying that had a profit the first two months astounding everyone. If the government changes the mark to market rule — as it should for this market anyway –the books will look a lot better. It’s just entries on paper anyway. If this is a rally, and if it persists for awhile we will get a chance to see whether this is the bottom, or just a way stop on the way down. As always you never know till later.
- Post author:WHC Bassetti
- Post published:March 10, 2009
- Post category:Letters
- Post comments:0 Comments