Waiting for rain (or Godot) …and the 1000th letter…

Posted on Oct 17, 2015 by in Letters

1016spx

http://stockcharts.com/h-sc/ui?s=%24SPX&p=D&yr=0&mn=6&dy=0&id=p38955316076&a=266398464

Like a man playing with a cobra we have been watching the market waiting for it to bite us.  This is not our usual posture.  We are never deterred from a trade by the prospect of a small loss.  It probably has something to do with the recent experience of being inside a washing machine.  But now, with squeaky clean hair (and similarly scrubbed mind) we think we can make some sense  of the state of the market.

Surprise!  It looks like the end of a bear market, with a double bottom, a neckline and a constructive upwave to break the neckline.  As always the penetration of the neckline must be confirmed but we felt sufficiently adventuresome to scale into more SPX (via UPRO).   This is in spite of the proximity of Oct19, the Halloween day for the markets.  Oct19 always make us break out in hives, even though the conditions don’t look right for it this year.  Right now it looks like to us that some modest buying or scaling in is in order — though the greater part of our personal capital is basking on the sidelines waiting for the brain trust to finish the new trading system.

1000 LETTERS

Our next letter will be our 1000th letter  — dating back to 1999.  And right the market on every major move — an assertion auditable by thrashing around in our archives. (An amusing proposition, no doubt.)  As is fitting the letter will be a major offering, pushing forward the boundaries of the science.  Donald Trump has agreed to do the jokes and Kim Kardashian will appear in the altogether, since Hugh is no longer doing the porno thing.

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