We habitually mock, satirize and excoriate the punditry, the financial press, politicians, the Texas Rangers, modernized productions of Shakespeare, supply side economists, Groupon, IPOs, Meg Whitman, banksters, psychopathic CEOs, faux Shakespeareans– but we digress and haven’t even half covered the list, so we will stick to the financial press and punditry over the past several months. SIX STOCKS TO BUY NOW! SEVEN STOCKS TO MAKE YOUR FORTUNE! BUY BUY BUY!
These people were wrong and the only reason they haven’t got egg all over their faces is that the market went on a tear upwards. So they look like geniuses. But they were wrong because the sideways wave (whirlpool) which lasted from August to October could just as easily have dropped down the drain to the antipodes and been jumped on by kangaroos. It is a violation of good tactics to buy in such a pattern. Good technicians wait till the boundaries are cleared one way or the other. These are the same people who bought Enron — because it was a good value — and Worldcom. They deserve our scorn even though they didn’t get caught this time. We speak of investors. Traders should have made a fortune during this period.
As to the so-called bear trap on Oct 3, it never tempted us because it didn’t meet Magee’s penetration rule: 3%.
Our flag which looks a little tattered, but is still acting like a flag — so far is, if it really is a flag, should target 1348 as there were about (m/l) 116 points from the low of the wave to the bottom of the flag, so we should see a comparable flagpole on the upper half. Do we believe this? How many times do we have to say we don’t believe in anything –except uncertainty? These are just tools. Do we believe in a hammer? Do we believe in a screwdriver? (When it’s made with good vodka.) Do we believe that jockeys are honest? Do we believe the horses are honest? Do we believe that people lie cheat and steal on Wall Street? (A good week for that, actually.)
But we digress into the realm of philosophy (and criminology). We are long the euro (bought when the press confidently expected the euro to travel to see the kangaroos in the antipodes), gold, silver, TBT and the Qs and the UPRO.
Illustrated, the new long side Basing Point and stop (5% filter).