OK, I'll say it. The market while rallying at a steep angle last week on Friday had shortening of the thrust with a narrow range and low volume. These are all bearish, yet the market closed on its highs. We are not going to discuss the intraday 5 minute chart today, but if we did so, I would show the buying was to support the market and was designed to trigger short covering into which the buyers would sell. This is not bullish long term. In other words, those that shorted the disastrous employment report will be panicked into covering and the support buyers will sell and possibly short higher. I hate to sound paranoid but this behavior in this market is so repetitious it has become tedious.
This is the pnf of a major market etf. It looks to be topping and is far more clear than the daily verical chart.
I am only going to discuss the 3x pnf. I cannot help mentioning the upthrust to 117, the ease of movement down, the new low to 104 and the inability to rally so far more than half way back to 112. This is real estate.
Compare to the 3x of BGU and see how weak real estate is. The distribution began in August.
Notice the inability to rally with the market.
This is a devastatingly bad chart.
Despite continuous attempts to rally the bonds since 10/9 it continues to make new lows.
This is perhaps the scariest chart on the page. If Ben Bernanke could read a chart this would give him sleepless nights. From 9 across is distribution and possibly going back to July.
This is the developed market etf and the weakness is more apparent than on the BGU chart. We rallied back to the red horizontal line, fell back and have since only rallied 50% back up to the rally high. Perhaps this market will find good support at the trend line but I doubt it.
I believe the point and figure charts are much mor clear in pointing to the trend than the daily bar chart. Do you agree?
OK, I'll say it. The market while rallying at a steep angle last week on Friday had shortening of the thrust with a narrow range and low volume. These are all bearish, yet the market closed on its highs. We are not going to discuss the intraday 5 minute chart today, but if we did so, I would show the buying was to support the market and was designed to trigger short covering into which the buyers would sell. This is not bullish long term. In other words, those that shorted the disastrous employment report will be panicked into covering and the support buyers will sell and possibly short higher. I hate to sound paranoid but this behavior in this market is so repetitious it has become tedious.
This is the pnf of a major market etf. It looks to be topping and is far more clear than the daily verical chart.
I am only going to discuss the 3x pnf. I cannot help mentioning the upthrust to 117, the ease of movement down, the new low to 104 and the inability to rally so far more than half way back to 112. This is real estate.
Compare to the 3x of BGU and see how weak real estate is. The distribution began in August.
Notice the inability to rally with the market.
This is a devastatingly bad chart.
Despite continuous attempts to rally the bonds since 10/9 it continues to make new lows.
This is perhaps the scariest chart on the page. If Ben Bernanke could read a chart this would give him sleepless nights. From 9 across is distribution and possibly going back to July.
This is the developed market etf and the weakness is more apparent than on the BGU chart. We rallied back to the red horizontal line, fell back and have since only rallied 50% back up to the rally high. Perhaps this market will find good support at the trend line but I doubt it.
I believe the point and figure charts are much mor clear in pointing to the trend than the daily bar chart. Do you agree?
