DJ; RE:" long-term charts "
>'what good are long-term charts...'
At this point in time, DJ - the weekly and monthly charts are just about the only tools I have left to try to find support levels and long-term trends.
But in the main, I find T/A to be as un-helpful as F/A in the face of relentless devaluation and the loss of credibility that has emerged in the markets.
There is no reason for sudden devaulation (F/A), and there are few (T/A) patterns to discern: straight down, 12 OEX points / week, average, for six weeks.
I knew that sentiment had turned on Tuesday - that the bounce was over and that we would go from OEX 545 to (possible re-test of OEX 522) the lower-bound of the trading range channel.
I did not expect a collapse of this channel. Indeed, were it not for the utter debacle of the CIS, I still believe that we would have been 20 OEX points higher right now.
Still, I should have bought PUTs to play the 545 -to- 525 downwave that I knew was forthcoming; and I regret advising you to not do the same, old friend.
-Steve
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