Tuesday, August 11, 2009

Everyone comfy? Fat Lady is up next [ FED ]

now we all KNOW it not over till the FAT LADY sings, as in the opera.

If the FED is the FAT LADY, then she sings today.

Both pictures above are full of upside energy and entering an area where they assume "weightlessness" like the early experiments in a C-130 Herc doing a ZERO-G move. This suggests, to me, using basic approach that if we had 16+ Market Days UP, and we would be likely to get a correction, such a correction could, in normal times, be as long as 8 Market Day IF the trend will continue. Therefore, my idea here is that stock market prices are at the top of a ZERO-G loop and vulnerable.

Just how vulnerable is demonstrated to me by how comfortable I feel with my profits. The last time I was this comfortable, I got ambushed by a 30% drop in my primary property.

So if your feeling complacent and comfortable, again, maybe its time to adjust your STOPS upwards, as complacency is the name of the last turn before AMBUSH.

Sufficiently concerned, I probably wont even publish some of my "Also-Ran's" or my semifinalists for today but rather hold them to see what happens.

I have my opinion about the stock market's reaction to the FED, but that is AN OPINION.

Gold and gold stock prices will be another issue to see what and if, what decouples from whom or not. Again, in either circumstance, Buy Limits and STOP SELL Orders are where we take our comfort.

Good Luck

Reblog this post [with Zemanta]

No comments: