Friday had some subtle characteristics of wave ending phenomena. In a pattern of rising volume Friday’s stood out. In the TLT (not illustrated here) there were hints of wave ending behavior. Also we got facebook out of our hair. As someone remarked, a cultural catastrophe. And, for our money, a fad which even teenagers will tire of. We were tired of it before it had its first billion users. A billion? A billion people are undressing in public? But we digress.
Also of interest in the Qs here is the pattern. This looks like a bear flag, and if it is then it should have reached its objective. Not to overgeneralize from one issue, but the other majors had similar volume patterns and similar feelings including a candlestick bar with interesting implications — open down, run up, reverse, run down, reverse up and close off the lows.
Those European socialists have not finished working their juju on us yet — Angela will founder and sink bubbling nein, nicht stimulus. And PnF objectives, and measuring objectives have not yet occurred, but we think the bears will make one last effort to drive the market down and create a bear trap, and then take the market up as they laugh all the way to the bank (JPMorgan).
Here, in the INDU we can see prices teetering on the support line, which would augur for a bounce.
We are reading the tea leaves regularly looking for a signal to lift hedges and pour (trickle?) some more capital into the market. You understand that everything we have discussed here does not constitute a signal. It might provoke an aggressive speculator to take a flyer, but prudent investors will wait for a sign of strength.
Maybe I’ll Have Another mint julep.