Alright, this is getting annoying and I can literally hear the question rattling around in your little chrome plated skulls:
Well possibly – but I have an inkling we may have to endure a bit more of this. Let’s look at our map:
Clockwork Orange has us push us lower straight away as we nailed my initial 1060 target. Soylent Green has us screw around a bit more to complete a b-wave and then pull up hard into a gap fill at 1067. From there we’ll drop even harder, so the difference between those two scenarios is almost academic for long term traders. You ADHD suffering swing traders however should take note.
Both scenarios have a [...]
Fast and brutal reversals (on little volume or participation) are expected during meaningful drops to the downside – get used to it – it’ll only get worse on the way down. Before you guys all reach for the eject button let’s look at some target ranges for the current bust higher:
Boy, whoever hit that one is a lousy shot – especially with such a small caliber. My trusted CZ P01 (9mm) clears the center at 50 feet – amazing semi-auto. Any rats resident in L.A. up for a shooting match? 😉
We painted another clean motive to the downside and are right now halting after at a 38.3% fib retracement. Could go higher tomorrow [...]
I think we should just feed some artifical A.I. with a bunch of Socrates quotes and then let it loose on the market. Looks like the old robe donning Greek nailed the support line he proposed yesterday spot on. I can tell you, Plato is in a bad mood right now as he was on the other side of that trade. But he should have known better as he himself said:
I have hardly ever known a mathematician who was capable of reasoning.
Someone should pass that quote on to the respective originators of various toxic assets that pushed our financial markets toward complete melt down – i.e. MBS, CDOs, CDSs, etc.) – most of which are still traded over the counter to this day I [...]
As my short term equity charts have all slowed down to the point of ambiguity I decided to ignore them all today and apply a slightly philosophical approach to make sense of it all.
After all it was Socrates who said:
A good decision is based on knowledge and not on numbers.
Wise words indeed and what it means for us traders is that all the fancy tools and indicators in the world are completely useless if we fail to put them into context or are able to interpret them to our advantage.
I mentioned this last Thursday – for the past year we have basically been gyrating within a hundred handle channel on the S&P 500 – with the [...]