Hi Britt,
It does looks like last market action killed some more of the endangered species Kahuna bear.
After taking Monday in its stride, not collapsing or even following through on Friday, the market was ready for AG's speech just on the decision point (SPX 912, bottom of channel), and I jumped the gun.
After the market got AG's approval yesterday there was a lot of enthusiasm, and the wise fell silent. This makes the bulls cocky. Their hasitations vaporate and they can go on fumbling in their pockets for a few more bucks to feed the market.
This is the time to make an all time high. This is also the time for the market to reverse.
1. After big Al says "exceptional" no young bull can forgive itself for not diving fully margined into the market.
2. The old bulls that have some reservations will forget them in face of market's action.
3. All those who were even remotely considering to get in, do so.
4. No one left, just us Kahunatics (and some smart money that's already out and cannot be dragged in before a MAJOR correction).
5. The market tops.
6. Young bulls trained to sell into strength and buy the dips, do so.
7. After dip, the market does not recover (not enough new buying power so no new high).
8. Facing a situation they've never seen before, young bulls pound thier hooves and raise a lot of dust to no end.
9. The market reaches yet another local low, a few strong charactered bulls manage to break free but the vast majority waits for the outcome.(Kahunatics chant as the vague form of bear god begins to materialize over Wall st.)
10. As the market continues to each new low, the bulls' hair turn whiter, they become timid and helpless, and finaly transform into sheep. (Bear god's fearsome figure now looming over NYC, Kahunatics in a frenzy of chants and dances)
11. Big hungry bear eats all the sheep, and marries Big Kahuna bear.
12. And they lived happily ever after.
Arik (8/5 8512 ------> 8/5/1999 4256)
Don't Panic. |
