Waiting for Godot
Sigh.
Well, the market was quite strong again today. The ETFs SPY (S&P 500) and DIA (Dow 30) hit record highs.
It always seems just when the cup of doom is handed to the bears to drink, it gets snatched away (OK, not sure where that peculiar metaphor came from, but it has a certain ring to it!)
Below is, once again, the QQQQ shown in its head & shoulders formation. The neckline is as plain as day. The price has scurried away from the neckline, and until it breaks it, the head & shoulders is just "in formation" and otherwise meaningless.
One buy recommendation I was going to suggest two days ago (honest!) was Google. The reason is that this stock does a smashing job "obeying" its Fibonacci retracement levels. I've noted them below with red circles.
It had been beat up so badly last week by bad news that it was right up against support. It has since moved smartly upward. I wouldn't be inclined to buy it at this point, since the risk is higher, but it's still intriguing to see the Fibs in action. The light green rectangles, by the way, are simply price gaps which I've highlighted.
1 comment:
The 4yr cycle has been faked out before - 1987 is a perfect example.
You know - I was reading an e-waver talk about the market and his wave counts led him to conclude that 2000-2003 was a fakeout.
Similar to the crash that happened around 1919. The market was down 2-3yrs and then rallied like mad for 8yrs (which led to
the 1929 crash & great depression).
So he thinks the bear begins in 2010. I forgot the guy's name. Stumbled across his book at Borders.
Or - as I keep thinking. The market has to decline with sentiment either very complacent or extremely bullish. Right now the
markets were very oversold and the sentiment was *VERY* bearish.
So perhaps we'll have a very strong rally now. S&P to 1350, that's what I was thinking at the start of the year.
-Mike
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