See, Speak, Hear No Evil
Of course not this blog – we are as evil as ever – my reference relates to the majority of market participants who continue to see, speak, and hear no evil. And they’re not the only ones:
As you can tell I’m the handsome one 
Mole can’t even watch this tape anymore – Gmak is holding his tongue (kind of of), and CD is running on cruise-control as he enjoys watching a legion of traders compete for first place to jump off the cliff.
We remain locked in aslow death march – reminds me of those those doomed German soldiers in 1943 getting bogged down by Mother Russia’s unrelenting winter. Gee – who would have thought that those polar like conditions might kill them off? But once a people decide to embark on lofty goals it’s a bit like turning the Titanic away from an iceberg – big ocean liners as well as investor sentiment locked in a bullish frenzy don’t turn on a dime. As ugly as this expanding triangle is – the bulltards have 1140 firm in their sight and refuse to give up – no matter how often they get slapped in the face.
Of course what usually happens after the blow off top following an expanding triangle is another story. From our bible a quick excerpt for the noobs:
A triangle always occurs in a position prior to the final actionary wave in the pattern of one larger degree, i.e., as wave four in an impulse, wave B in an A-B-C, or the final X in a double or triple zigzag or combination.
So, I guess we’re destined to storm hamburger hill – no problem – I can wait. Actually, I can’t wait 
Meanwhile it’s been bear hunting season for ole’ bucky. That’s a nice squeeze right there but we’ve pushed up quite a bit and it’s time for a retracement. So, let’s consult our tea leafs courtesy of 2sweeties over at retracementlevel.com.
As usual I start with the odds and 77.69 lines up with resistance going back to December 08 as well as April 09 – good enough for me – those are some good odds for setting my 100% mark. As you can see 77 only reduces down to 83% and then there’s the 76.67 mark with 68% – barely a dime away.
The frequency chart has changed – we already passed the big one at 76.43 and the next three starting right now almost have identical frequency – so I’d stick with the odds, which are again 68% right here and 83% at 77, assuming we go that far.
What’s of course intriguing about today’s Dollar tape is that equities seem utterly unimpressed and are traversing their way higher (dip buyers are already streaming in despite the quick shake out two hours ago). The inverse correlation between ole’ bucky and equities has slowly been weakening and if you think that’s a bullish signal then I have some beach front property in Arizona I’d love to sell you.
This entry was posted on Friday, December 11th, 2009 at 1:40 pm and is filed under Currencies, Elliott Wave Theory, Market Outlook, Retracement Levels. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
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