Up Up And Away!
11:22am EDT: Well, so much for Orange – long live Soylent Green!
Something strange happened however – if you compare this chart with yesterday’s you’ll note that the peak (so far) touched exactly one of the projected fibs from the Orange scenario. Maybe it’s just coincidence – or there’s some kind of correlation which I’m missing. I often measure prior waves and project their lengths, which works wonders at times but this time that projection point is the 920 mark and it was another fib – mmmh – I’ll have to think about that a bit more 😉
Anyway, we are now reverting back to VWAP at minimum – so keep your eyes on the 941.5 mark. If we breach that I see 942 or 943 before any further downside.
11:37am EDT: I brazenly just stole this chart from the slope – hehehe:
As papa bear demonstrates – sometimes you have to step waaaay back in order to see the big picture. I think we’ll breach it before all this is over but I also think that the first attempt (this week) will be unsuccessful and that we drop to the downside first. Especially as we are in a highly overbought condition right now. The bulls will have to regroup a bit lower, gather some strength (i.e. lure in more bears), and then bang the tape higher from a new platform.
11:50am EDT: Here is another long term line I’m sure only some of you old timers remember:
In 2008 I coined to be the PPTPL – the Plunge Protection Team Panic Line. Every time we got close to that one some Fed sponsored intervention occurred spiking the tape higher (for a few days). Aaaah…. the old days…. how I mss them…. Since that gap lower in October (Prechter calls it ‘point of recognition’) we have not even come close that one again.
We will at minimum test it and the way things are unfolding right now I’m fairly confident that we’ll breach it eventually and push towards the coveted 10k mark. The Fed’s 2nd stage rocket boosters might even get us higher than that – the upper channel line would be around 10,400. At which point I would drag my wife to the pawn shop for a few extra few bucks to throw at short positions.
3:16pm EDT: Audo Interview with Matt Taibbi on Disciplined Investor. (that host doesn’t know how to shut up, skip into the middle of the clip to catch Matt).
BTW, I’m seeing some very violent moves in the NQ – most definitely some monkey business going on. The sharks have smelled blood and are eager to push this turd above the 956 line.