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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin
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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj

Thursday, 16 February 2012

Dow wedge break


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2 comments:

  1. Anonymous16 February 2012 at 16:00

    That's a pretty chart, Rambler, but given this move... I think that the Bears will be surprised just how much ROTATION occurs from sector to sector, thus keeping the market from correcting hard. One day Apple will sell-off, meanwhile the energy issues will support the market.

    Today, the A/D line is 2:1 to the upside.
    You might want to post a chart of NYSE A/D Line, because the "tell" will be when the market advances on NARROW A/D numbers, and not the broad numbers that we have had, thus indicating strength.

    For example, when the NYSE A/D Line took out the November 2011 highs on January 10th, you had to throw in the towel being a Bear and stop yourself out. If you didn't you had no business being involved in the financial markets.

    It's interesting to note that the SPY has closed ABOVE the 10 day MA every single day since Dec. 20th EXCEPT FOR ONE DAY. That is a huge sign of strength, and not indicative of a market that is "topping". The perma-bears just don't understand the basics of T/A. If I employed a trader at my Fund that held a short through this UPTREND (confirmed by one of the most basic MA's out there), he'd be FIRED. No questions asked.

    That's what some of these kids on the blogs don't understand. The market place is very UNFORGIVING when you actually have skin in the game. If you are "paper-trading", it doesn't even come close to the stress of actually having REAL capital on the line. There's no time to be courteous or kissing people's ass when there is MONEY on the line.

    Brutal HONESTY with yourself is the key.
    Without it, you have no stop losses and you delude yourself with fantasy. That's why I know that 95% of the kids on some of these blogs do no trading whatsoever.

    Pretty simple my friend.

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  2. Chartrambler16 February 2012 at 18:42

    there's a dfference between being courteous and "kissing peoples ass" and being downright rude and vindictive.Honesty and civility are not incompatible.
    The BPI also measures breadth and is extended and starting to roll over.
    I agree with you about stops.
    Who cares whether people on the blog trade or not ? I am sure most do,but really dont care

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