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Yankee Doodle
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Yankee Doodle

by The MoleJanuary 27, 2009

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.
Cheers!


About The Author
The Mole
Mole created Evil Speculator amidst the chaos of the financial crisis in early August of 2008. His vision for Evil Speculator is a refuge of reason, hands-on trading knowledge, and inspiration for traders of all ages and stripes. You can follow him and his nefarious schemes at the usual social media waterholes.
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