The Perfect Storm Is Just Ahead…

By
Red
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292
2107

No Post For Friday Gang, as I'm a Happy Bear Now, and looking forward for more fun next week.  I'll have the weekend post up by late Sunday Night.  Go Enjoy The Weekend

And Friday Could Be The Start Of  It...

From a technical point of view, a lot of damage was done today for the bulls.  That late day sell off broke the rising bearish wedge on the 15 minute chart, as well as forcing the 60 minute chart to rollover and start pointing down.  On the daily chart, the necktie did hold the market back and reject it hard.

Then there is the dollar (UUP), that had a huge buy candle appear in the last 10 minutes of the day, forcing a big move up in the dollar.  This tell me it was "insiders" that know something is ready to happen.  It was between 3:40 pm and 3:50 pm, and had 1.5 million shares bought up.  Compared to the entire day, which only had about 4 million shares traded... that candle is HUGE!

Remember last week when Sundancer mentioned that he got an email from a friend at the Chicago Board of Options Exchange, telling him that a big buyer came in and purchased a ton of VIX Calls.  Then what happened next?  Thursday crashed, and the VIX soared.

That large buy of the dollar, of 1.5 million shares, tells me that the dollar is getting ready to explode higher.  That is very unusual volume for the dollar.  Something is brewing, and it's not going to be good for the market.  Let's think about this from "outside the box" for a moment.

What event could cause a big move up in the dollar?  Or maybe I should ask the opposite... what event could cause the Euro to tank, which would cause the dollar to soar higher?  Could the rumor that Germany is going abandon the Euro, and go back to their own currency be true?

The article is up on Zero Hedge, and the link was posted yesterday by StockTech (thanks for the link).  According to the article, German chancellor Angela Merkel is scheduled to give a speech to the nation on Friday evening, where she could announce a currency change from the Euro back to the Mark.

I don't know what is going to happen of course, but I find it odd that she is waiting until the market is closed, on a Friday evening.  Believe me, if the news was something that would be bullish for the market, it would have been released during the market hours.

Everything is planned and timed to be released when it benefits them the most.  The German crooks are no different then the American crooks.  Remember, about 200 families control 70% of the worlds' wealth, and they are all part of the "good ol' boy club"... meaning that they get together and plan out future events that will benefit them the most.

The leaders of all the countries are just the puppets that are in the public eye.  The real people who control each country is the multi-billionaires behind the scenes.  These aren't some conspiracy theories that I'm making up... these people really DO control the planet, and especially the market.

You know that too be true, if you have been reading my posts long enough too see all these fake prints play out.  Maybe not every one of them, but you have to admit that it's really strange how those intraday prints are hit within a day or two.

Of course, finding out what they plan too do next isn't always that easy, but we are given many clues.  Like the big dollar buy today in the last 10 minutes.  And, the fact that Gold is going threw the roof.  Let's not forget that Oil is still getting hammered.  These are all big clues, that tell me that we have another sell off coming before another rally into mid-summer can occur.

So, from what I can see... Friday, and next week is looking like some big selling is still coming.  Could Friday be "Black Friday"?  I don't know, and I don't want to call it that... as I might jinks it.  So, I'll just say that I expect a down day tomorrow... how far down, I won't guess at.

Red

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292 COMMENTS

  4. Awesome post red, yes tomorrow will be very interesting and hopefully profitable for us bears as well.

    • Let's hope it is good for us bears. I'm really trying to look at all different points of view… both bearish and bullish, but I really can't see any reason to rally tomorrow.

      Yet Fujisan posted these comments…

      http://disqus.com/Fujisan/

      I respect her a lot, as her trading skills a very good… but if I'm reading some of her comments correctly, she seems bullish into next week. I have too disagree.

      But, maybe I'm not getting the whole picture by just reading what she's posting, as I don't know what the person asked her… that she was chatting with.

      Anyway… enough said.

      • She seems to be saying that she now thinks a turn will take place at 1149 rather than 1107, will rally to 1180 instead of 1168, and will be at 1150 for OEX. Presumably it would go lower later. Yes, I suppose it could play out this way, a more extended time frame. That 1180 level is still in the operators' hip pocket.

        We've got all these data points that can be mixed and matched. I suspect a plunge today after a failed rally to 1170. Those with May options might want to get rid of half at EOD if that happens. Or, we may have a gap open, a rally to1180, and end the day with a black star or hollow red candle and plunge Monday. In that case, I would go for the gusto on the plunge because the rally option would have been played.

        I woke up in a sweat this morning that WE are the bagholders and that this will turn into a bull market. Trying to shake that off. One indicator I follow (subscription to wallstreetcourier.com) shows that afternoon (big) money has not participated in this rally.

          • Of course, a rally without a double bottom (happens sometimes), everyone jumps on board late.

            I'm favoring a fake double bottom followed by another plunge, after a good-sized rally. Who knows? Best to stay flexible.

  5. Great post Red. With any luck, this leg is wave 3 and will bring the SPX below 1000.

  6. I have a few British friends that are ecstatic that Britain never adopted the euro. Not that it is saving Britain at the moment.

    The world is shaking. It may get difficult but it will be far from boring.

    • Yes Jim,

      We should have some wild swings next week. OPX week is usually Bullish, but I think the bulls might be shocked on Monday, if Germany drops the Euro.

  8. I would like to find out is this going to be wave 5 or did we just finish 2 and the next move is 3 (a big steep down move) How long will this take, how many days? various EW people attempt to figure this. Let us know when you find out. Many on the blog list on this site attempt to figure this.

  10. Monthly BB has something to tell us. the upper Monthly BB has NOT been hit. If we close below the Middle BB , then the odd are that we hit the lower BB before we hit the top. Briefly, we will go down and touch the lower BB at 738 over time.

  11. Red, I agree with you that the market is headed down, but I think the German currency story isn't real:

    “Zero Hedge has added fuel to the fire by posting this from guest contributor The Prudent Investor on Wednesday:

    'A web page of precious metals prices provider Kitco.com has sparked rumors that Germany will leave the Eurozone and reintroduce German Marks, sending gold to a new record of $1,244 and silver to a multi-year high of $19.64. It is this half-ready page shown below that has created excitement as it lists precious metals in Deutschmark units.'

    People, we hate to break it to you. But we have it confirmed.

    This is an old ghost page of Kitco’s from before the launch of the euro. Still live on the web, but no longer updated.

    There is nothing to see here. You can go about your business as normal. If Germany does have a plan B, it’s very unlikely to involve a relaunch of the Deutsche Mark this weekend.”

    http://ftalphaville.ft.com/blog/2010/05/13/2306…

    • Thanks for the update Dollar…

      The technical's tell me the market is going down to probably retest the lows from last Thursday and maybe put in a new low?

      As too the Germany story… who knows? Lot's of rumors are started, and this could simple be another one. But, “IF” we tank the market again… they have too blame it on someone, it might as well be the Germans. LOL

  13. Carl’s morning call:

    June S&P E-mini Futures: I think that last week's low at 1056 ended the correction from 1216. Today's range estimate is 1139-55.

    1144.25-1159.50 range last night (15.25 points)
    1139-1155 estimate for today (16 points)

    1148 currently, so estimate is -9 to +7 from here (neutral)

    • I'm surprised that Carl doesn't have the gap fill area (1110-1120) from this Monday, as a possible low. Should this 1150 area break, I could easily see the market fall down and fill that gap.

      Rarely does the market go inside a gap area, and not fill it. That 1139 is half way in the middle of the gap. Of course, it could stop there today and fill it on Monday… who knows? Just deal me another card… come on Ace, I need a BlackJack! LOL

        • I guess everyone has different ways to chart the market. I use the technical analysis a lot, and try to piece it together with some EW counts, the news, and of course the fake prints. Which by the way, we still have some fake prints at 111.30 in the afterhours session from Monday. I think that is our target down, as it will also fill that gap.

          I know you don't believe in them, and that's cool too. Either way, that 111.00 area is likely to be hit again, as the TA's tell me that. Today or next week… I don't know, we'll just have too wait and see.

          • Seems like when there's a big plunge, it goes lower second day on an intraday basis. Can't always bet on that, though.

  14. Holding shorts in a down market is just as hard as holding them in an up market. You don't want to be greedy but at the same time, you want to be greedy!

      • Yep – all of the good traders think it will stop there and maybe they are right. But if they are wrong, that will provide more selling ammo.

        • Just bought a few calls as cheap insurance. If this sucker takes off to 118 at least they will defray my losses. We can count on a correction at 118, I believe.

  20. On Monday morning of this week, there was a fake print of 114.21 at 9:10 am. We just hit it and are now bouncing back up from it. The next fake print is at 113.52, with only one print of it showing up right at the close of the day (4:00 pm EST).

    But, there are a total of 4 fake prints at 111.30 in the afterhours session. I think that is our downside target, with a bounce at 113.52 up next.

    • Red ,

      iam having trouble setting my stops. typical.

      i f spy hits 111 are you selling or are you holding through opex. iam torn over this.

      • I am getting rid of may puts and half of may vix calls at 1113.20 and keeping my june puts.

      • I'm going to sell part off my position (1/3 probably), and let the rest ride into OPX. Next week could get real ugly, if some bad news is released over the weekend.

        So, I'll take some profits just in case they try to rally it on Bullish Monday, and Bullish OPX week. But, I really don't think the will. I see more selling next week.

  23. I am up nicely, but people are bullish. I'm not covering anything yet. Maybe some as the double bottom approaches.

  26. Still more down coming…

    We are now putting in a nice bear flag on the 15 minute chart. We could continue this sideways movement until the MACD works off some of oversold conditions. It may take an hour or two? It's hard to know for sure how, because I don't know how many of these 15 minute bars are needed before another flush down will happen?

    http://stockcharts.com/def/servlet/Favorites.CS…

    I doubt that it will make it back above the zero line and into positive territory, as I expect it to just inch up close too it, and then fall back down. The 60 minute chart is still putting huge overhead pressure on the market, and won't be oversold until the end of the day.

    http://stockcharts.com/def/servlet/Favorites.CS…

    So, we could just trade like this for a few hours and sell off hard into the afternoon session. Next stop… 111.30 spy. Here's the daily chart too… if that doesn't spell disaster for next week, I don't know what will.

    http://stockcharts.com/def/servlet/Favorites.CS…

  27. Red……are you having fun yet?

    Take notice of the cash spx monthly chart and note the 20 month MA

    it worked or was touched upon 5 or 6 times (in other words it worked) in 05-07 (support) and acted as resistance once in 08

    So my educated guess is that next week opx for June (along with all the European problems- I heard that German unions will go on stirke?) that the $SPX will test the 20 month MA (Bollinger Bands) now at 990.

    Just a logical, educated guess.

    • Yeah probabilities are decreasing that gold containment will hold the $SPX in the 1050 region, & the next weekly containment is teal which is in the upper 900's.
      1173.57 Local Min Value
      -2.12% 1148.69
      -4.24% 1123.81
      -6.36% 1098.93
      -8.48% 1074.05
      -10.60% 1049.17
      -12.72% 1024.29
      -14.84% 999.41
      -16.96% 974.53
      -19.08% 949.65
      -21.20% 924.77
      -23.32% 899.89
      -25.44% 875.01

      Have capital to buy all the way down to the last tier

      • If the market goes all the way down to the bottom tier, then it will probably take the market 3-4 months to get back up and put in a new high. Could be late August, or September?

        That would make for one hellova Primary Wave 3 down coming in the last quarter. Man… that is going to be ugly!

        • VIX long-term trend is up, so I expect that swings will be huge. Wouldn't be at all surprised if the market is mostly recovered in a couple of weeks.

          We are focused on shorting today, but next is going long! Research over the weekend and make buys next week.

  28. Another educated guess. Next week, After the $spx hits the low maybe at 990 and then rallies, Gold will skyrocket, nosebleed style.

    • I don't play gold, as it's too hard to predict. But, if fear sets in… then Yes, I could see a lot more upside. But after this sell off is done, another rally will happen in the market… probably putting in new highs.

  29. Here's the drawing board

    S&P earnings reduced by 7% – Previous top is 1220 – so market value is 1135. In order for us to get a bargain we need the market to drop from the previous low of 1050 to 980 area. But I think what is the pipeline is what they are trying to do is 1225, so a discount of 7% is 1140.

    Any thoughts ?

  30. Most successful trading day ever, and the party's just getting started.

    Sundancer, can't thank you enough for your guidance. I only went in partially, hedged and everything else because I'm a born Skeptic, but you nailed it.

      • I have to learn more. I Googled on some of the expressions that you use, and come back to…you. I plan to review your old posts and try to ask intelligent questions.

        I have a sense of the ritual as far as the emotion-tugging aspects, but to be able to plot the turns is incredible.

        Kudos again.

        Pete

      • Yes, we are all indebted to you and Red for that matter for providing this forum. Thank you for sharing your knowledge.

  31. New from Carl:

    I think the market is about to retrace most, but not all, of the rally from 1102 to 1174 which resulted from the announcement of the rescue package for Greece. Midpoint support stands at 1113 and 1116 is the midpoint of the second box for this rally. I think we shall see a reaction low Monday or Tuesday. Once the drop from 1174 is over the move to 1300 should resume.

    • Wow. Carl and I must be having the same breakfast this morning. lol

      Damn you Carl. You had better be right, cuz I am seeing the same outlook. lol

      • SC,

        It does make sense, but I wish Carl had been right more often lately, so I could feel more comfortable thinking he's probably right this time.

        • I came across a model that analyzes days like May 6. That is an outlier day. Historically, it never retestes the low. 2/3 of the time, it retests the previous high w/o a retrace. The remaining 1/3, it retraced the rebounce but did not retest the low, and then reverted back to test the high. So, the odds are strongly favourable to the bulls. But it is probably blasphemy to post this here. LOL

          We either stabilize here at 112-113 or bottom at 110 Mon-Tue.

    • Hahaha, that would be copyright infringement, maybe. Wouldn't want to face Sundancer in court! 😛

      To echo Monica, thank you for this congenial little forum, Red, and your articles. May your blog never become popular. 🙂

      • Rip,

        Pictures are free all over the internet. Unless it clearly states that it's copyrighted, you can pretty much copy any picture you want. I certainly don't create all the pictures for my posts.

        I do sometimes edit them, add text on them, and cut and paste several pictures together, but many times I will just use a cool picture “as is” on my nightly posts.

        Anyway, just trying to help. If you don't want to use it, that's fine too.

    • Red, that avatar is way cool! I opened in a new tab and looked at Sundancer's chart instead. I'll use it, thanks!!

  36. Red, I just bought back in most of my May puts (still have the 114s plus the VIX calls) even though I know we are going lower. I just rather not take the risk that they expire worthless. If we bounce back today, I will buy more June puts.

    • What keeps me in is lack of premium on the options. People just don't believe that it can go any lower.

      I usually get out when the fear mounts, but never go the full way. I'm going to try it this time.

      • Well, I had way more puts then was prudent. I still have a lot. And if I can add more June ones, I will. Just made me nervous holding May ones so close to expiration even though I believe we tank by then.

        • I hear you. I was a lot shorter at one time (lost track of the days) and took a profit. Nor did I take an opportunity to go shorter today. I'm like 90% sure this bear rally has two more steps in it, but don't want to risk wiping out.

          Once we get by this fake double bottom, the stuff will really hit the fan until close. Got to watch out for the PPT, though. 3:45 would probably be a good time to cover. I'm doing part today, how much depends on how big the numbers are.

          • My husband forced me to cover but I am still have a large position. If we rally to 114.30 (and of course that is an if), I will buy June puts since they are not as time sensitive.

          • Usually it is the hubby taking risks while the wifey forcing him to cut back. lol

            But, remember those words you said about having learned your lessons… 🙂

          • Thanks SC for the reminder – you sound like my husband! Yes, I am the risk taker in this relationship but imagine I would be in any relationship! Trying to curb my impulses 🙂

          • Tell your husband, I know how he feels. The women in my life run the shows. First my mother. Now my gf.

          • Thats why I took up yoga at a late age. So i could be more in touch w/ feminine side I fell like i was in control.

  37. By the way, the June puts I bought 2 days ago I entered in for June 30th by mistake (instead of the 19th). Does it matter?

  39. Everyone get an eye out for fake prints now, and after the close. They might throw one out there to tell us their plans for next week. Look at all the charts, with different time frames, and different news sites.

    Who knows? We might get lucky and catch one. It would be nice to know what the bottom is for this move down.

  40. Profit taking should kick in any minute.

    Friday before OPEX.

    Its going to get real interesting

      • I think there will be a bit of short covering. But i may be wrong today its taking a while to get going.

  41. Sundancer, if we don't back test red containment today, you think there is any chance we back test it on Monday?

      • Wasn't that much, really. A good day, not as much as I'd hoped. Lots of bullishness, big upticks, bad chart patterns. I didn't want to eat those puts on a big rally.

        Still committed to the Southern cause with ETFs and June puts. 🙂

    • If you are interested in rolling your own, go to traders.com and search under George Reyna. He wrote an article several years ago that will allow you to plot your own version of containment lines. This is a variant Paul Levine's work from many years ago. Unfortunately he passed away before it gained mass acceptance. George sent me the software years ago and I lost it during a PC crash. It was crude and manual. I remember the concept though.

      Happy hunting!

      • Thanks, Gere, I'll bookmark that and study it further at a time when my wife has not had so much of the stock market. 🙂

  47. I sure would have liked to have seen S&P close in the 1127 area. Would have set up Monday nice.

    now its a guessing game again especially if they get it over 1135

  50. 113 was the launch pad to go into Monday for sure. i was impressed they could pull that off with ease.

    • It's amazing, how they squirt buys and sells to move around like astronauts with the gas jets.

  51. Carl at day’s end:

    1139-1155 estimate for today (16 points)
    1123.75–1148.50 actual range today (24.75 points )
    Market was 6-15 points below Carl’s range.

    Trades: No trades
    Grade: C (lost no money)

  52. A great amount of capital will be re-distributed next week
    The general opinion has been growing all week among the “investment” community that the lows are firmly in & we are off to news highs
    The thesis among the “investing” gurus is a spike in their handy dandy oscillator & every time this oscillator reached this level the market always put in its low.

    *IF* the “investing gurus” are correct, then the higher low was put in today
    http://www.flickr.com/photos/47091634@N04/46074…
    the precise low today corresponded to the TL that held the SPY during Jan. 2010 highs

    I don't make decisions based on oscillators, I follow Rituals. There is a weekly setup that has been providing downward pressure on the market & IMO will continue to until it is completed.

    Should at anytime next week the $SPX take out todays lows then things ought to get interesting.
    Here is a Navigational tool should that happen
    http://www.flickr.com/photos/47091634@N04/46068…
    Containment levels
    yellow/dark purple: 1120's
    light purple/blue: 1070's
    burgundy: 1020's
    white: 1010's
    green (last containment pt.): 980's

    Have a great weekend!!!!!!!!!

  53. LOL! Agree with you there for sure! Thats because most folks do not understand the math behind the oscillators.

    Even a simple one such as the RSI. I have pointed this out several times on the ETF corner. The RSI is nothing more than a diffusion index. A 14 day RSI will cross 0 at the same point as price crosses the 28 Day EMA.

    For those that doubt, plot it out!

    Or, do the math 🙂

  54. Oscillators are not to be used alone. Various lenght of osc should be combined with various lenght trendfollowing indicators. Only rookies use osc on a standalone basis.

  55. TNA opened down 1.8%, and the opening gap was not filled. TNA was down 1.7% at it’s high, and closed down 5.8%.

    An earlier gap from $56.70 to $57.39 was filled today.
    A gap from today from $58.98 to $60.04 remains unfilled.

    We are now in a New Moon Trade, which tends to favor TZA. The new moon was today, at 12:30PM eastern.
    AmericanBulls had TNA with a Hold today, and TNA was down, so there may be a possible sell on TNA for tomorrow. The TNA buy was at $55.66. TNA closed at $56.52, up 1.5% from the buy.
    AmericanBulls had TZA with a Wait, and TZA was up today, so there may be a possible buy on TZA for tomorrow.

    Volume for TNA today was about 30% above normal.

    $RVX (VIX for $RUT) closed up 10.3% with TNA down 5.8%. No divergence.

    TNA had been down 4 days in a row, then up 3 days, now down two days. Neutral for TNA.

    The low for TNA was from six days ago at $42.29. Today’s low was $54.25, 28% higher. Good for TNA.

    Today, Ultimate Oscillator for TNA fell from 56.04 to 55.95 (0.09) while TNA fell 5.8%. A divergence. Good for TNA.

    MACD fastline is below zero and falling. MACD slowline is above zero and falling. Not helpful for TNA.

    Bollinger Bands for $RVX (VIX for $RUT): Today, $RVX gapped up and had a white candle about mid way between the upper Bollinger Band and the bar of yesterday. MACD fast line was rising today. The fast line is still rising. Not helpful for TNA.

    Bollinger Bands for $RUT: Today, $RUT had a red candle that fell away from the 20day moving average and closed below the 50day moving average. MACD appears to be falling. Not good for TNA.

    NYSE down volume was 21 times the up volume today – Good generally for TNA, with a 1-day delay — so maybe next Tuesday.

    TNA had a lower high & lower low & lower close (not good for TNA)

    Money flow for the Total Stock Market:
    $ 858 million flowing into the market 2 days ago.
    $ 270 million flowing into the market yesterday.
    $ 2,900 million flowing out of the market today.
    Not good for TNA.

    I will post the AmericanBulls candlestick interpretation a bit later.
    Overall, bad for TNA for tomorrow.

  57. The Daily view from Americanbulls

    TNA was a Hold today, and after being down 5.8% today, is a likely sell for tomorrow. The particular candlestick formation – Bearish Three Inside Down Formation – is considered highly reliable. The buy price was $55.69 & the close today was $56.62, up 1.6% since the buy.

    TZA was a Wait today, and after being up 5.7% today, is a likely buy for tomorrow. The particular candlestick formation – Bullish Three Inside Up Formation – is considered highly reliable.

    Of the stocks & ETFs I follow, these are to hold on to:
    UUP(US Dollar)
    SCO (-2x Oil)
    DTO (-3x oil)
    ERY (-3x energy)
    FAZ (-3x Financials)
    EPV (-2x Europe)
    SPXU (-3x $SPX)
    QID (-2x QQQQ)
    DXD (-2x DOW30)
    DZZ (-2x Gold)

    The list to avoid:
    IYR(1x RE)
    URE(2x RE)
    DRN(3x RE)
    GLD (gold)
    UGL (2x Gold)
    SLV(silver)
    USO(oil)
    UCO(2x Oil)
    ERX(3x energy)
    AAPL
    AMZN
    DRI
    GOOG
    EWG(Germany)
    EWQ(France)
    EWU(England)
    EWX(emerging mkts)

    The following are possible buys tomorrow:
    GS
    RWM (-1x $RUT)
    TWM (-2x $RUT)
    TZA (-3x $RUT)
    SRS (-2x RE)
    DRV (-3x RE)

    The following are possible sells tomorrow :
    IWM (1x $RUT)
    UWM (2x $RUT)
    TNA (3x $RUT)
    DIA
    SPY
    QQQQ
    QLD (2x QQQQ)

    Today saw a marked shift to Bearish.
    Action for TNA or TZA for tomorrow: Possible buy of TZA, Possible sell of TNA

    • That's a very interesting fake print. It was outside of Friday's trading range entirely. So, either some one made a fat finger trade, or (if you believe that fake prints give direction), the next stop is the upper 1150's (SPY 116).

    • I believe that was SPY's thursday close,

      take a screenshot of the $SPX 3 min chart from Thursday afternoon, the operators left some key gaps

      it will help you stay long on the way back up after we fall off the cliff

  60. Red and others, find a very bearish Frank Barbera of FSO online radio program
    http://www.financialsense.com/ Frank B . starts in about 8 min into the program

    Frank says if the Euro continues down Monday then its very bad for the S&P
    He does mention 970 on the S&P

    also on this blog list is “the chart pattern trader” who is very good

    This later guy sees a “wave 2” on the s&p to go a little higher “perhaps” (15 min chart) then wave 3 down. So may be a pop on monday the down??

  62. Hello- about the Euro- Frank Barbera says that it's key. Greek unions will call a strike on Wed and march. We'll see what hot air is gathered to spike up the Euro causing rallies, Perhaps over the week end. Maybe this won't happen. Will they intervene to bolster the Euro?

    also that “small” 12 pt rally on the spx near the close. I suppose this could qualify as a wave 2 up. ie doesn't have to go another 15 pts up.

    From: http://www.safehaven.com/article/16804/euro-the…

    They are due to march in the capital on Wednesday from 6 p.m. (1500 GMT), in a rally which will give indications about the public mood before the big walkout next week. Investors are closely watching public reaction to government wage and pension cuts amid concerns broader unrest could hit Prime Minister George Papandreou's resolve in pushing them through.

    Hypothetical: Riots break out Wed and the markets short term find a bottom in another panic. they recoup for 24hrs or so and then tank again going into expiration, maybe down to the middle monthly BB area 970-990 spx

    • Hi there – like your projection but I am think that since Sundancer's ritual dates are Tuesday and Wednesday, the bottom might actually come in when you mention on Wednesday, but then I imagine we rally from there back into June. Then sometime in the summer (maybe late June?) we reach the top and then plummet really hard. Just a thought.

      • I really only know a smattering of EW but the big down into wed (if it happens) would be some sort of 3 of 3 which means the bottom's not in yet. That's why I saved it for friday.

        But I'm not a competant market technitian (nor speller!! LOL) so I'm not going to mislead people. I'll defer to the experts

        Of course if I can figure it out, it won't happen. But I think I'm on to something. Also, watch out, gold and silver may skyrocket. silver may rally to 27-37.
        http://www.safehaven.com/article/16805/gold-tec…

    • Ben, I am a lousy market technician as well but I am pretty good at connecting the dots from everyone else! We had a VIX (equity buy) signal last week which is pretty accurate but can take a week or more to play out. The $NYMO is looking just like it did on February 5th before we fell to a low on Feb 8th and then bounced to new highs. So my guess is that this Wednesday, we get back down to the 105 SPY area. I completely agree that we have the “big wave” down to go, but I don't think it will happen until at least the end of June. From there, I think we tank even lower than the levels you mention. I will repost tonight after Red makes a new post.

    • friday's closing #
      1135.68 Local Min Value
      -2.12% 1111.60
      -4.24% 1087.53
      -6.36% 1063.45
      -8.48% 1039.37
      -10.60% 1015.30
      -12.72% 991.22
      -14.84% 967.15
      -16.96% 943.07
      -19.08% 918.99
      -21.20% 894.92
      -23.32% 870.84
      -25.44% 846.76

      From Top
      1219.8 Local Min Value
      -2.12% 1193.94
      -4.24% 1168.08
      -6.36% 1142.22
      -8.48% 1116.36
      -10.60% 1090.50
      -12.72% 1064.64
      -14.84% 1038.78
      -16.96% 1012.92
      -19.08% 987.06
      -21.20% 961.20
      -23.32% 935.34
      -25.44% 909.48

      These #'s are in congruence that the low is not probable to come from gold weekly containment.

    • Gold and teal must refer to color. i could not see the gold color, looks off white to me

      How do you get 13% probability for the 1050's?? This means that there is an 87% chance that we go below the 1050's or that we stay above the 1050's.

      Probably the latter

      • Very good eyes Red,

        On SUNdays the operators screw around with the data feeds so that is why you're seeing an extra candle in my chart

        This SUNday they didn't release any exciting previews

        Usually the First SUNday of the month they give out some good previews for the month

        I think it was the first SUNday in April when they released the script for the $DJI 10K tick

        • Have you found the prints to be equal to what that week actually did? If so, then we are looking at a sideways week, with no downside movement. If they haven't been actual, it would make me feel a little better… especially since I'm still very short.

          • Breathing easier now… thanks.

            As much as this market is controlled, I don't always trust the technical analysis I do… like the one on my weekend update. Everything tells me that there is more selling coming, with Monday being the most likely up day, and the rest of the week looking ugly. But, I've only studied TA for the last year or so now, and I'm not an expect by a long shot!

            So, I listen to what “they” want to tell me too…

      • Good eyes red and thanks Sundancer. I was worried it was the weekly as well. Looking forward to seeing how the week plays out.

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