UPDATE 10:00am EST: Good morning rats – now that was a pretty interesting open. If you are an RL subscriber I suggest you check your notes (ahem)….
Two orders of business: First, de3600 points out that I can’t call myself a ‘yank’ unless I live in the Northeast (shudder). Yes, I do know that of course, but when you venture abroad they’ll call all Americans ‘yanks’ – so bite me! 😉 Like we all call all Brits ‘limeys’ over here – hehe – no offense to our marmite munching rats overseas.
Now, Berk seems to have placed an oracle style message on the VIX Reversal post, stating that ‘one major component’ is missing – he missed to mention what it is of course as he likes puzzlers (remember the ‘what is this chart’ posts?).
Okay, I checked it and it [technically] does not satisfy candle #3 – as that close was higher than candle #2. However, I wonder if this is merely a technicality – not to doubt the pattern and all. Bottom line is that we jumped outside the Bollinger and then reversed on a dime (see the 2nd candle). If it wasn’t the VIX that would have been a good exit (i.e. VIX sell) signal to me. And since then we dropped from 56.65 to 45.87 as I’m typing this – I call that a reversal. But yeah – technically this particular pattern is invalid – thanks Berk.
Yen is on fire right now, which is ruining the nice open for the bulls. Crude also just tanked by nearly 5% and TLT is slightly in the green – perhaps that is the first leg up in its a/b/c correction that should get started soon.
Something I wanted to share with you rats before I run off is my trusted 2hr stochastic chart grid of our four food groups. As you can see – we have burned a lot of stochastic potential yet have not gone anywhere fast. Yes, there is more upside possible – we’re only just about to hit the 75% line. But this does put a ‘roof’ on how far we can go here (to quote Erik) until we will see some kind of correction. The bulls better get a move on tomorrow after the FOMC announcement, otherwise I’m not sure how we’ll be able to reach 920. I would love to see that happen – so, chop chop mouthbreathers!!
I’ll be here for about an hour or so, but then I’m off. Please keep the flow going while I’m gone. I always hate to see blog discussions hit the wall when the author is MIA – self reliance is key and you guys know the drill by now. Make me proud.