Jim, it is amazing how we can view the same charts in a different way....We are both entitled to our opinions, and I respect yours...The other day, when Joe Granville saw a Head and Shoulders Bottom in the DOW, I couldn't believe the guy, here he was a spokesman on CNBC...But as I looked at the chart, I could see how he could come up with that assumption.....But Joe, has a lousy track record to say the least.....
Here is what I see, and all of you who follow this thread will soon see the wisdom of this call...I have staked a lot of money on it, as you know I have 15 open short positions as of tonight.....I will either make a lot of money, or I will be looking for handouts....
The NASDAQ is in a clear Head and Shoulders Top formation....You have the left shoulder at 1640, The Head at 1750, and Right Shoulder Built at 1650...What we are seeing presently is a retracement to the neckline at 1600...As I mentioned on a prior post I see the Nasdaq moving perhaps to the 1585 level in the next two days, before we begin the descent...If we zoom over 1600 on powerful volume, you guys can all send me a Sympathy Card...To avoid the badgering, I will probably leave this thread and move on to another....Thank goodness I got a
free membership on Silicon before they started charging....
If you view any oscillator,(Relative Strength,Ultimate Oscillator, etc...you will observe a lower peak on each of the three rallies, this is a warning signal that the uptrend is losing momentum.....
Further, the DOW Jones is in a triple top, or Rectangle pattern....
I can't believe after people have made 25%+ a year for three years that they are playing the odds by being long at this point...Hasn't this Bull market lasted 7 years? Do Bull markets go on forever?
Again all three tops of the DOW are ones where momentum is decelerating not accelerating...Take out the relative strength oscillator and take a look for yourself...Lower peaks......The rectangle pattern that is also apparent is from 7600-8200....A breakout or breakdown from either point, confirms either a Bear or Bull market....
One thing I do agree with you, Jim, we will have our answer within the week.....All the best to everyone, and I hope to be around next week to talk about what happened....Regards, Mark
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