Archive for May, 2010

Reading the message from the market. Poisoned pen letters? Billet doux?

Posted on May 29, 2010 by .

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2010-05-28-induhOrdinarily we let the markets do what they want to do on the hourly basis.  And the markets do what they want to to us on an hourly basis.  And there are times when we look at the hourly charts to see what the foretell (if that is possible) on a daily basis.  On this hourly chart we can see broken downtrend lines and the arresting of the downtrend.  In fact you might even see a kilroy (or H&S) bottom forming here.  The exaggerated volume on the 23rd looks like a volume climax.  Old traders, like ourselves, get itchy in times like these and try to beat the market by trading, instead of trending.  Many bleaching skeletons lie on the deserts of past markets of dead traders.  We’ve left a bone or two in those deserts ourselves.  That’s why we constantly encourage our readers to remain above the day to day naked mud wrestling.

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Had enough already? Say uncle or we’ll hit you again.

Posted on May 27, 2010 by .

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2010-05-27-induYawn.  As Peggy Lee used to sing, Is that all there is?

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Bungee markets continue. Dow faints of dizziness.

Posted on May 25, 2010 by .

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2010-05-25-induOnce again today looks like a reversal day.  The Dow was down 290 points in the first five or ten minutes and spent the rest of the day clawing its way back to finish 22.82 down.    We have called these bungee markets and the term is vividly descriptive.  The trading day two days ago looked like a bungee reversal day– evidently wasn’t.

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Change of direction? Change of rhythm? Musical chairs again?

Posted on May 22, 2010 by .

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2010-05-22-induAnalysis is a funny business.  It’s a good thing that it’s only money at issue here and not blood and lives.  What’s that?  Money is blood?  Well, yes, it can get serious, but if you take it that seriously it is life and death.  But you know what they say — if they can’t take a joke….

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Broken major trendline. Serious consequences.

Posted on May 20, 2010 by .

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2010-05-20-induWhile it is entirely possible that prices will climb back above the trendline now being violated taht is not the way to bet at the moment.  As for the knife catchers they are trying to treat this sell off as a buying opportunity.  And it may well be.  But that is not the way for prudent investors to bet.

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