Archive for February, 2016

Walking backwards in circles…

Posted on Feb 29, 2016 by .

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0229gld

http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=0&mn=9&dy=0&id=p60546422961&a=255869372

The gold rush which impelled gold and bonds has struck a triangle.  This at least contributes some rationality to the market.  One can now wait for the breakout and that should enable a rational analysis and a rational trade.

0229tlt

 

http://stockcharts.com/h-sc/ui?s=TLT&p=D&yr=0&mn=9&dy=0&id=p93822624124&a=261274354

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Walking backwards to Babylon

Posted on Feb 21, 2016 by .

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We’re lost, but we’re making good time.

Yogi Berra Roshi

0220spxbox

 

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

How did we get here?  Or perhaps just as important, where are we?

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Chaos, confusion and consternation (some our fault)

Posted on Feb 21, 2016 by .

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0220spx

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

Our last letter may have sown confusion in some of our readers.  Let us straighten it all out.  If one were trading the system we have been using for the last 9 years the three leaping… would be a strong buy signal.  That’s in a strong bull market.  In the present markets  only the bold trader would venture a trade.  And, just that — a trade of five to 10 days.  It would require continued progress for the trade to last longer –with rapidly rising tight stops.

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More faces than a banshee

Posted on Feb 18, 2016 by .

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0217spx

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

In the most treacherous markets of our lifetime many faces are shown.  Now the market is inviting us to buy again.  The pattern is that most enticing of Japanese candlesticks, the three gazelles leaping.  Theoretically these  power bars should mark the start of a z wave.  Certainly the moderately bold could buy here, looking for a trade that might turn into a trend. You would want to stop it 1% below Monday’s low.  We would be surprised if the market’s trickeries were over  but like Charlie Brown you have to kick the football0217gldgaps http://stockcharts.com/h-sc/ui?s=GLD&p=D&yr=0&mn=6&dy=0&id=p24377361185&a=399982138

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Chaos, confusion and carnage

Posted on Feb 12, 2016 by .

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0211indu

http://stockcharts.com/h-sc/ui?s=%24INDU&p=D&yr=1&mn=0&dy=0&id=p68692925235

We have, after much agonized analyzing, come to the conclusion that we are in the midst of a market storm which is a force of nature, and there is no understanding of it.  So instead of beating our heads against the wall of obscurity we must fall back to complete simplicity — what does the chart say?

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