Watch closely as we break hallowed rules…for Halloween…

Posted on Oct 15, 2011 by in Letters

First.  The market blew away the two nearest highs, destroying the declining pattern.   Someone referred to the Oct 4 low as a bear trap, as well it appears in retrospect.  Didn't trap us because we didn't trust it anyway.  In fact we don't trust anything about these markets.  Subsequent price behavior illustrated once again that a failed signal indicates the next signal in the opposite direction will be a profitable one  (in general).  In general that was true in spades as the S&P surged 13.9%, pinching the toes of bears.  (Us, in general, though we caught a part of the wave on a trade.)

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