A New Ally

I said over the weekend that,

It’s been a long time since I’ve felt so energized about the stock market. Bit by bit, things are truly beginning to break down.” The 900 point drop on the Dow I am staring at right now helps explain why.

This morning has provided us an exceptional new ally in the form of a major price gap. I’m not even afraid of Powell anymore. I’ve got fantastic positions, and I think he’s going to have knives thrust into his eye sockets in the months ahead. Here, for example, is the Dow Jones Composite. Go ahead, Powell, Rally up up to the magenta line again. Once that green line gives way you are beyond screwed.

Similar setups abound. The Dow Transports, for instance, have completed a marvelous inverted cup with handle pattern and are sporting the same terrific gap that just about every financial instrument has now.

The S&P 500 reaches its highest point in human history just three days ago. The 15th of July is probably a day we’ll commit to memory, just like March 6 2009, in terms of major turning points. The trendline failure here is just what the doctor ordered.

The more narrow S&P 100 has a similar situation.

I think my task has suddenly become gloriously boring, since I love my positions and don’t really need to tend to them. I’ve got SOME cash waiting in the wings, in case something gets bid back up again, but on the whole, it’s time to be a relaxed bear.

Disclaimer: This is not meant to be a recommendation to buy or to sell securities nor an offer to buy or sell securities. Before selling or buying any stock or other investment you should consult ...

more
How did you like this article? Let us know so we can better customize your reading experience.

Comments

Leave a comment to automatically be entered into our contest to win a free Echo Show.