Monday, June 05, 2006

C'est Magnifique

Perfect. The market is behaving precisely as I have been predicting. I am absolutely delighted that the bears are in firm control of the market. I've got a lot to say, but it'll have to wait until later tonight. Come back in a while, and congratulations to my bearish readers.

8 comments:

John Wheatcroft said...

I don't think so. With every index forming a cupped bottom I'm wondering what part of the market the Bears are "in charge of". I would not be surprise to see about 4 down days followed by one hellofa rebound in the next several weeks. And that's only if we get the 4 down days - we might go up strong tomorrow. I hope not. In fact I'm hoping for the 4 down days.

Richard Foster said...

Looks like down to me. The SPX broke the 38% Fibonacci retracement with conviction today, and is headed for the 50% at 1251. It could easily break that the way the MACD and Stochastics look and the 61.8% at 1232 looks very likely on this run. Just my 2 cents, but I'll be in puts on this index, thank you.

Richard Foster said...

Looks like down to me. The SPX broke the 38% Fibonacci retracement with conviction today, and is headed for the 50% at 1251. It could easily break that the way the MACD and Stochastics look and the 61.8% at 1232 looks very likely on this run. Just my 2 cents, but I'll be in puts on this index, thank you.

Will Fix said...

Anyone who thinks we will see a bull market (I'm not talking a few up day's) is in need of medication! the dollar needs to be saved ....proof Gold is going up...other countries are raising thier interest rates....so we must! Why? you ask.....so we will attract money...that way the US Government wont have to simply print money for the banking system.....by the way real inflation is when the government is forced (by non saving money americans) to put NON gold backed money in the system!!! WOW!!!! STOP THE MADNESS!!! We will raise rates untill the dollar is strong AND WE BETTER START BACK WITH GOLD IN THE RESERVE! We are in for a summer of "Oh Dear are we going back to the 1920's ! But it will recover before the year end.....and PS Ford motor co. is going to more than double soon....just watch....and GM may crash and burn....but also a major bank is going to fail soon.....Keep this post.....you will see.

costas1966 said...

John Wheatcroft said "I don't think so. With every index forming a cupped bottom I'm wondering what part of the market the Bears are "in charge of". "The ignorance in that statement sounded a lot like "Hurricane 5". Are you "Hurricane 5"? Try 200 point down with 4 to 1 declining stocks vs advances, How is that for a sign that the bears are in control of the market. Even Jim Cramer was boiling bulls in a pot today and had the bears drinking out the same pot.

There will be no rally from hell that lasts for several weeks. The market is broken down. There are no bullish setups and beleive me I know. I go through 600-700 charts a day and all I can find is 7 possible bullish setups. The A/D line hits multiyears lows confiriming the weakness. The leadership of the commodity related stocks and of the emerging markets is gone, the banks and financials are in a topping out proccess and that will be the next thing to break down big and take the market sub 10,000. No such a thing as a several weeks rally. The rally already happened and it lasted 1.5 weeks. Can they rally it again? Sure, but it will be a much weaker rally and it will not take out the 1290.68.

John_Szente said...

A lack of follow-through over the past two weeks above resistance or below support seems to suggest that neither side has control. The bears have certainly been able to move the market more during their time at the wheel, but isn't that almost always the case? I have been patiently bearishly-neutral since getting spanked during last week's whipsaw action that formed beautiful bear flags. I watched the open to see if 1290 could be broken and then prepared my orders during today's fall in the hopes of engaging my list of puts on a break of my flag lines on the S&P and NASDAQ. Unfortunately, neither index could close below my lines and the below average volume did not convince me there would be follow-through, so I didn't jump in before the close. (That might have been a prudent decision, because a peek at the evening futures action shows they are all up slightly, so we could see another damn day without follow-through at support!) The DOW appears slightly more bearish as it was able to drop down and test the lows from 2 weeks ago, but it could not achieve a lower low. Until I see a lower low on the S&P below 1245 or a higher high above 1290, I'm staying out of the white water while the bulls and bears battle it out and waiting for a victor signified by a break in either direction.

Dave said...

the $TRIN closed at 2.93... that alone combined with the fact that the market did start to push off its low at the very end of the day should equate to the markets rallying or atleast neutralizing in the first part of tomorrow's trading.

Sanjay Sola said...

I see more downside. Boeing has a head and shoulders and has not broken down under the neckline. it will be one of the last components to tumble. Today, CAT fell below support. All the construction stocks got slammed.

too many bad charts, which is unlike any other correction in the last 4 years.

i'm waiting for a confirmation rally day before i go long.