TRENDING
Ladies and leeches – I am seeing an interesting pattern on the Zero Lite this morning:
Seems to me that there’s a little bit of a bullish divergence on the Zero Lite. Be careful if you’re exposed to the short side.
Here’s the live Zero for your convenience (reload page to see the live version):
Cheers,
Mole
Despite the chart I posted last night it seems that the bears are simply unable to make a stand, which confirms to me that the SPX is in an extending third wave. What’s really scary (for the bears) however is a glance at the latest VIX chart:
As you can see the 2.0 BB has made a complete u-turn and has been dropping sharply. Let’s just project ourselves forward mentally a few days. What would happen if we actually get a down day or two and the VIX would rise up a bit more, eventually pushing outside the upper band?
That’s right – that would mean an equities buy signal – hard to believe but that situation might be only a few days [...]
This is one of my favorite charts, and it continues to be worth gold:
Not sure how this works and why (well, I do have a theory) but every time we hit the bottom or top of this trend channel the tape makes a u-turn. Based on prior occurances chances are the down trend continues, at least for a few days. I’d give it to about 0.5 – then take profits and call it a trade.
Disqus is down again today it seems – sorry, but this one is out of my hands. Why they have to put a new database into production on a Monday morning is beyond me quite frankly…
Grab a cup of java or your favorite tea – this is going to be a long one.
I haven’t done a Sunday forecast for quite a while now and the good news is that I am hereby resurrecting this apparently much appreciated weekly tradition. But more importantly, this post also represents the beginning of a new chapter, a change in approach for anyone who regularly frequents my digital den of market domination. One that may prove to be more fun, more satisfying, less noisy, and in the end hopefully more prosperous for all of us dare devils who insist on partaking in the virtual pandemonium that is the financial markets.
Let me take a step back and explain what happened [...]
Forward Projection
