The market is at a very tricky situation here. On one hand, money is flowing in, not out. That can change over a few days, but until that changes, it is going to stay strong. Furthermore, the March OpEx week has a 9 to 1 odds of being an up week. So basically for this week, bears are fighting against bad odds.
On the other hand, the current market conditions of being overbought, over valued, and facing interest rate pressure, has in the past experienced a -10% over the coming several weeks.
As soon as I detect money flowing out, I will start going short. Expecting a 10% drop. But will then be looking to load up more growth stocks with full margin. Expecting to ride the last stage of the cyclical bull market to the summer peak. P3 will come this summer when the Alt A reset hit the fan. This thermonuclear catastrophy will start going off from mid 2010 to mid 2011. The Alt A reset will be the trigger for the P3 everyone has been looking for since march 09.
“Bermuda Triangles are typically seen as wave fours. Once complete, prices typically move in the same direction they were headed before the triangle started. The downside targets are usually at a minimum the distance of the widest portion of the triangle from the level the triangle ends.” Bermuda triangles are also known as devil triangles 🙂 Question I have is weren't we headed up before this whole triangle started meaning that we would be going up from here?
Out of TZA
Carl just sold both units at 1150.75
Carl just went long second unit at 1147.75
His first buy was 1139.25 yesterday
Thanks Earl. Hope he is wrong today. Still short I am.
Carl's morning call:
June S&P E-mini Futures: Today's range estimate for the June contract is 1143 – 1158. The ES should reach the 1200 level by the end of May.
1136.50 -1146.50 range yesterday (10.0 points)
1144.50-1149 range overnight
1143-1158 todays range
1147.75 currently, so -4.75 to +10.25 from here
Nice Post. Makes sense.
The market is at a very tricky situation here. On one hand, money is flowing in, not out. That can change over a few days, but until that changes, it is going to stay strong. Furthermore, the March OpEx week has a 9 to 1 odds of being an up week. So basically for this week, bears are fighting against bad odds.
On the other hand, the current market conditions of being overbought, over valued, and facing interest rate pressure, has in the past experienced a -10% over the coming several weeks.
As soon as I detect money flowing out, I will start going short. Expecting a 10% drop. But will then be looking to load up more growth stocks with full margin. Expecting to ride the last stage of the cyclical bull market to the summer peak. P3 will come this summer when the Alt A reset hit the fan. This thermonuclear catastrophy will start going off from mid 2010 to mid 2011. The Alt A reset will be the trigger for the P3 everyone has been looking for since march 09.
“Bermuda Triangles are typically seen as wave fours. Once complete, prices typically move in the same direction they were headed before the triangle started. The downside targets are usually at a minimum the distance of the widest portion of the triangle from the level the triangle ends.” Bermuda triangles are also known as devil triangles 🙂 Question I have is weren't we headed up before this whole triangle started meaning that we would be going up from here?
I would have sold also. Carl must be looking at different indicators.
Carrying what I now have overnight is thrill enough for me.