Wow - markets really taking it to THE LIMIT in both directions,, markets really getting close to the spot where you would think about taking the loss and move on - but hey ,, those times is VERY often the times when its good to buy. When you are about to throw the towel thats the time to buy more and be greedy.
Overall the pattern I see still holds true - TLT is getting to a resistance spot and TBT getting to the lows - which IMO needs to hold in TBT. So this means TBT cant move any lower and TLT cant move any higher and therefore I would expect mkts to bottom on this fast little drop into close on Wednesday.
I still believe in a MAJOR rally to come after this to take us above 1290 area and potential target is 1340-1360.
I see the same bullish patterns on many indexes , DAILY chart inverse head and shoulders which is VERY bullish pattern and I think it will play out very well from here into new year. Perfect time for a santa rally to begin however I thought it would begin this Tuesday ,,, but giving it a few more days to see.
XLB (materials making the inverse hs pattern)
XLF
CAC
FXI
All charts making inverted hs patterns and there are even more ,, I'm still long TNA 43.5$ and EDC 80$ and underwater quite a lot now ,, but I will give it a few more days (this Friday) and early next week to see - my thesis is still the same and extreme bullish into year end , so lets see if they trapped enough shorts to rally.
Many people believes in new lows here soon , but I still think 2011 lows is IN and we are just having a correction/pullback since the major rally we had in October, before the next major rally ... stay tuned.
What do you think of this ? It tells me a lot more downside on DAX.
ReplyDeletehttps://docs.google.com/leaf?id=0B_uHh-KDT4taZjViZTYwNmEtNGE4MS00ZGU0LWE0OTUtMTA3YjI3MDI3NDVh&hl=en_US
Looking at Bullish percent readings and its MACD, there is still a lot more to go, we are not close to the bottom yet. A bounce for next week maybe, since NYMO is oversold now.
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