Volcano Eyjafjallajokull disprupts air traffic. Earthquake Goldman disrupts markets.

Posted on Apr 17, 2010 by in Letters

2010-04-17-indu

The year in dog time.

2010-04-17-indu2The market in real time.

Our letter yesterday was not written with insider knowledge.  Unfortunately.  But it came true from one minute to the next.  Of course Goldman is the excuse.  But the reason is technical.  48 days without a downwave gets all the contrarians itchier than a garden of poison oak.  The jungle drums have been beating for a couple of weeks with the bears being pinched on their shorts, and growling for some meat.

Essentially what we said yesterday still goes.  You can struggle against your fate or just relax and let the downwave play itself out.  Which it will.  There is a pretty good support line about 10750 and ample support in that zone.

We will be adding to our positions when the downwave plays itself out.

Stay tuned, because we will be thinking about this over the weekend.

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