Well yesterday another reversal bar of reversal of reversal, often indicating a top.
Today Nikkei down -1.7% lets see if today with the GDP numbers will start triggering the sell off... I expect EITHER today and IF not today on those numbers , then we must wait for QEII next week, which EVERYONE is waiting for...so our time will come.
The NYSE Summation index got a BEARISH SELL signal 28th October 2010 which was yesterday, lets see if that is a confirmation that markets will go down over the short term.
NYAD summation index gave us SELL signal 19th October a bit earlier.
The NYAD summation index are getting some acceleration to the downside whch is BULLISH if you are a BEAR !
I wanna get attention to you, that the bank index DJUSFN is VERY VERY close to a MAJOR MAJOR huge breakdown. A big crash in financials are comming here with right shoulders forming in a huge diamond pattern on weekly chart, which was the same before crash 07-08. Take in mind, why are smart guys shorting markets more than ever right now on NASDAQ ? They know a lot more than we do. Insiders have NEVER been selling more than they have before......the buy vs sell ratio is EXTREME to the sell side...
Dont be fooled, lots of people say dont fight the fed, but you will be SCREWED up big time when we get the major crash and its comming. Trust me I have been early, but other people been calling for crash from mid 09 and start 2010, I am maybe 1 month too early, but I can take it ! I still believe a MAJOR MAJOR move down is comming and it is right around the corner. QEII will at least trigger it. I went all in shorts at SPX 1160 and I am underwater - YES! I can take it just with some patience and holding I know I will be fine. Everything points to a big crash comming, but we just need to screw all the shorts out and only think bullish......which theyve done pretty well.
When markets come back to REALITY we will CRASH hard and I still believe you will be VERY rich if shorting markets from here. No one can predict markets like on the DAY and sometimes you are lucky to get the exact tops and bottoms, but you need to look at your charts and lots of lots of people have been screwed and didnt think we will go up as we did here. But afterall I really love using the summation indexes cause they are right 80% of the time I will say, and right now NYSE and NYAD is now confirming each other and FLASHING SELL signal.
Lets see today, look at the financial index, its either going to have a big breakout or big breakdown here, take your choice. I am confident we breakdown hard.
Have a nice day
the big question will be - when to close your shorts?
ReplyDeleteHow deep can this crash go and fast or slow? Stair case or waterfall?
Hi Edge!
ReplyDeleteWell - its hard to say , but have a target of around 944 level which is 50% retracement since the lows last year and highs this year. Lots of support in that area. But well, price action will tell us and we must just follow the price and signals. If we get buy signals then take off shorts. But for now very bearish , but well we can still go up. But bullish sentiment VERY VERY high now, more than april highs and smart guys shorting more than ever. Take your choice.