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Strategies & Market Trends : John Pitera's Market Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: John Pitera who wrote (15811)	4/14/2014 8:40:13 AM
From: Hawkmoon	1 Recommendation Recommended By Davy Crockett Respond to of 33421

Hi Tosa, we can see from this chart that Hawkmoon passed along I know that's a great chart John.. Wish I had developed it, as well as the ones related to existing margin debt at this time.. But for me, they just confirm the charts I developed.. I review the Quarterly charts from time to time looking for sell signals and low and behold we saw it in the 1st quarter of 2014.. The Quarterly charts just reveal a compelling historical truth.. That when a black candle on the quarterly is combined with hitting, or approaching the upper Bollinger Band, the result is pretty dang ugly.. And when we combine that with the initial descending Tick on the Quarterly MACD, it's basically hard to deny or refute what lies in store in coming months. The SPX is the most compelling example of the historical precedent. bigcharts.marketwatch.com The Nasdaq Quarterly chart is also compellingly accurate using the same indicators: bigcharts.marketwatch.com And, of course the DOW.. It reflects a bit false sell signal in 1998, and then it waited until two years later to give the real sell signal.. bigcharts.marketwatch.com And of course, the RUT.. this is my favorite short because small caps tend to get cannibalized by institutions and used as a source of funds to prop up their dividend paying, and big cap, stocks. bigcharts.marketwatch.com Final note.. We see bottoms form either at Quarterly MA's, or at the bottom Bollinger Band, on ALL of these charts.. Now.. it's possible that historical precedent will be challenged and defeated.. But for some reason, I think the Fed is looking at the same charts I'm looking at, and they are deathly afraid of a UBER speculative bubble developing.. Better to try and pop it now.. and hope we stop at the 20 Quarter MA and don't sell off further.. Hawk