Pullback on way too big of run. Means nada near term.
BIDU ran from 161 to 340 in a matter of two months, can show you stock after stock that did this or better.
We have gotten a little ahead of ourselves, but do not think of shorting this, yet.
Still feel we should have a parabolic blowoff to this run, it has happened at every major top in the past, including 1999.
Be damn careful how you play this near term.
With that said, charts show a mixed picture.
However did everyone read the incredible explosion in credit card usage. Very sick nation indeed, no longer able to use cash outs, they switch to plastic. Like addicts in need. The banks have them right where they want them.......and we will have our market crash. Just delayed, my bets for the top are into 02/07 2008.
Risks are very, very high, the money flow on the INDU has been so negative, very narrow rally.
Market turn date on October 17th, we could see a multi-day pullback into the date then continue our ramp upward.
Big money center bank driven. They really set up the little guy in August with all the subprime/Northern Rock crap and made a killing squeezing their balls off!
Targets to watch.
Upside 14600 breaks we go ballistic.
Downside 12,500 total key - 13200/13250 at worst on this pullback.
Yesterday did zero technical damage. Charts big time bullish, with the exception of Dow Theory - non confirming, this needs to change and is being watched very close. The Transports are reason IMO for selloff yesterday, three days this week they could not break outside of a VERY KEY, (extreme) 5002.43, technical level!
Will update going forward. And am posting much, much less - really not much to say for now. When I see a real change will be back more regular.
West |
