Tipping point? What’s the point?

 

We have been looking for the start of the downwave for some days.  In these cases you never know till later, but that is soon enough.  Today we bought GLD and sold our Qs.  It is possible this marks the top of the upwave for the market in general but we will not know that till later.   See exaggerated volume 4-6 days ago as prices fell, right on the 200 day moving average and near the horizontal resistance line.  Add to that the length and strength of the rally.  We suspected and said so that the breakout looked like a bull trap.  In fact we think the entire rally was a bull trap.  But — hey — what a trap.  Maximum alertness and agility now demanded.

This Post Has 2 Comments

  1. saherne@firecomms.com

    hi william
    is it possible that the dollar may strengthen further due to deleveraging if the markets fall over again.It would provide a paradox and the greatest amount of pain to the greatest number of trading participants just like last years episode.Or is popular sentiment on the dollars demise set to self fulfill itself? cheers

  2. WHC Bassetti

    Actually only my maman and childhood friends call me william anymore. Everybody else calls me Charles unless they met me in a Spanish bar. To learn that nickname you have to be in one of those bars. The dollar is stuck in a conundrum right now. A large sidewave. I will post a chart and coment.

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