Thursday, December 11, 2008
GREEN LINE. Watch the Green Lines ! !
Following the Concept of LOOK DONT LISTEN ! WE NOW CAN follow the Green Lines.
What we are seeing here is the weighted compilation of all the advances minus declines on the NASD over a period of 100 days. Think of it as a weighted Oscilator, much like the Ultimate Oscillator.
It is further modified by being subjected to the MACD treatment in the lower panel.
The Upper Panel is Wilder's ADX, or directional index. The up line is GREEN. The green line measures HOW MUCH AREA is UNDER the BULLISH CURVE. It shows me that the Breadth is advancing.
So smoothed, weighted and massaged, the up-turning plurality of the Advances over the Declines on the NASD is very clear and apparent. I wonder if anyone on the frequencies has ever seen anything like that recently.
A nagging thought is tugging at me - > This is a Bear Market Rally, IMO. Suppose as like in '29 or '31 we have reached a bottom ; Would this 'Little' Bear Market Rally morph into a BULL [Inflationary ], and if it does, is that where it morphs into the WEIMAR/ZIBAWAE Hyperinflationary Bull Market?
Given the willingness of the Governmental Powers That Be to KNOWINGLY take us from pillar to post and back again, do I doubt that these increasingly Manic / Depressive bouts of volatility were not in the script. NO, I dont doubt that AT ALL.
What to do? LOOK< dont LISTEN - > stay on the correct side of the Intermediate Trend.
And what beyond that ? Be vigilant.