Dale,
>>>>>>>>>>
This thread has certainly changed in a week. I am astounded.
bobby beara has turned bullish.
Plonk's 3 of b of 2 of II of 7 of Monica's megaphone indicates new highs by the end of the month.
William has been bullish since he got back.
Ground Zero started the week pitifully praying for a little rally and ended the week claiming victory.
Vitas covered his short in the great BK game.
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Very interesting observation, which made me remember something. Lets go back to the extremely strong runup during JAN-APRIL - around the end of Mar I recall that many technical systems then were giving SELL signals on SI and with some of the analysts. I also recall clearly that PISANI on CNBC talking about how high the CALL to PUT ratio was and that many of the floor traders felt it could reverse. Well I bought PUTs at that time also. The market did pullback about 200 points to around 8750, then continued strongly back up to gain 500 more points.
I have noticed over the last few days with both the media/analysts and SI posts that BUY SIGNALS have been triggered. In many of the individual technical indicators, I have also noticed these BUY SIGNALS, such as the STOCHASTICS, RSI, MACD, VIX etc Similar to what happened in MAR, but in reverse.
Due to the the failure of my PUTs in MAR, during that strong uptrend, I installed some safety valves in my system with the hope that it would prevent a false signal, and right now it is not confirming the BUY SIGNALs of many of the individual technical indicators. In fact, it is now saying that we are smack in the middle and it can go either way for the short-term. It does hint of a possible short-term TRADING RANGE TREND of 7500-8100, which still needs further confirmation, but the overall bias is still to the downside. I am not saying that it is calling for the BIG KAHUNA either.
Thanks for your observation, since it confirmed that the safety valve I put into my system is working - now it could be working too well and halt me from changing my position quick enough to the upside. As long as the DOW does not break 8100 substantially(about 100 points), then this safety valve is doing its job. Of course if the DOW breaks 8100 strongly, I may have to conclude that this safety valve may be too strong/rigid.
Seeya |
