Now we’re talking…
I’m a happy camper tonight for two reasons. First I banked some very nice coin on MNTA today. Check out that monster candle, and then go and hit yourself with a kitchen utensil of your choice for not trading this sweet jewel today. Despite me pushing it in my post here yesterday as well as on OA. Guess nobody got the memo. Shame on you guys – this is unacceptable 😉
The second cause for celebration is that life just got a lot less complicated as we were finally able to declare a winner in our two competing scenarios. It was a technical k.o. in the 12th round, as all three main averages shlepped themselves over the finish line. Almost painful to watch, had it not been such a wonderous moment to behold.
As the impatient Internet leeches you surely are the question burning in your mind right now most likely revolves around what happens next. Yes, Mole – spare us the technical jargon this time and tell us how we can bank the most coin possible in the shortest amount of time. Well, I got to respect such sincere expression of speculation evilness, so low and behold for the chart dreams are made of (almost):
This chart is an attempt to simplify of what’s ahead. One of my major concerns since we launched this blog is that some of our ‘technicalities’ might just be beyond the scope of the average reader. And you guys shouldn’t have to be after all. The purpose of this site is to offer a basic summary of probabilities on near and long term market behavior. So, I’m sparing you the complications of how exactly this thing will unfold and how jaggedy the pattern may be with its various gyrations. However, for anyone who cares – we may see a straight a,b,c push up to one of those targets or we may paint something like a triangle. The latter would get us to the 1325 on the S&P cash index (shown above). But again – what do you care? If we breach 1295 with any confidence some short term long plays may be in the cards – go for it.
Again, and I probably sound like a broken record by now: The ‘money trade’ here is in the ensuing drop, which I have coined the ‘slide into the abyss’. Wear your oxygen masks and bring some flippers – you’re gonna need them.