Is it a bird? No! Is it a plane? No! What is it? It’s a bear being shot out of a canon! And I’m not even exaggerating as this rally may be nearing its first leg but is long from being over. The bears basically had been handed eighteen months to take this market to the woodshed and failed miserably. Every. Single. Time. The price to be paid is going to be enormous because a failure of this magnitude should come with an appropriate punishment.
There is something markedly different about the current sell off and I have spent the last few hours assembling pieces of the puzzle into what I hope will be a useful perspective on where we are heading. As you know the analysis of volatility patterns has become somewhat of a hobby of mine and the more I delve into this aspect of price behavior the more fascinating it becomes.
Today is going to be a big day for equities. As it’s the last session of the month, the candle we paint today will be on record and add another piece to the puzzle that we have slowly been putting together over the past few months. But let’s backtrack for a moment and pick this one up later. This morning I came across a brief interview with Art Cashin which gave me much pause. Disclaimer: I usually don’t watch MSNBC or any financial news but had followed a pertinent link in my online UBS account out of sheer curiosity. So Bob Pisani kind of throws this softball at Art saying that nothing really seems to be able to break or slow down this market. And I was actually a [...]
No matter if you are a hard nosed trader or a casual investor, every once in a while it’s advisable to detach yourself from the daily grind, sit back, grab a hot beverage, and parse through some long term charts. Although the don’t affect our daily entries here at Evil Speculator, they do give us a better view of what type of market we are navigating and thus how we may have to adjust our trading patterns. After all – context is everything. What may have worked very well in 2012 most likely hasn’t worked in the past year or so. When markets change traders have to change with it or find themselves on an extended losing streak.
I have been talking [...]