My Internet is terrible, and thus this post is gonna be short and sweet. Despite today’s fall in the S&P 500, my Bullidex chart has begun printing a new row of X’s. This is a bullish signal, indicating a decrease in volatility and and increase in the % of rising S&P 500 stocks.
“Today’s Ponzi-style acute fragility and speculative dynamics dictate that he who panics first panics best.” – Doug Noland (Prudent Bear Funds, Credit Bubble Bulletin, 10/26/07) First, let me apologize to you dear reader, for Quote Critique has been on a brief but unfortunate hiatus due to extreme lethargy and sexy booze filled nights. Now that…
Despite the buoyancy of some financial stocks, the market remains in liquidation mode with fewer stocks in bullish formations and increasing volatility. Cash remains king, whether it be greenback or gold. Until the above chart begins to show a new row of X’s on the far right, there is no need reason to get long…
I’m fortunate to be in cash and gold, this market looks hella ugly. Volatility is rising and there are fewer stocks trading in bullish formations according to the Bullidex. I’ve noticed that my rant on Antal E. Fekete is growing in popularity, and while that’s all well and good, I’ve changed my position on gold…
I should have posted this last night, but I got wasted on the LES and awe struck by some massive titties. What’s worse, this is by far the most difficult chart to read because of its massive height. The scaling of the Y-axis is dynamic due to the ever changing Average True Range of the…
Despite terrible economic news and questionable business practices, Morgan Stanley continues to rise, remaining well above the 2008 lows. The lack of volume on up days tells me there is little conviction amongst buyers, and that sellers are marking up prices, which will exhaust demand for the next leg down. All the same, until MS…
“Whenever a well-known bearish analyst is interviewed [Cover story] in the financial press it usually coincides with an important near-term market bottom.” – Clif Droke (Clifdroke.com, 11/15/04) When it comes to bear markets, selling the rumor and buying the news is a counter intuitive and frustrating proposition for novice traders. The market action explains the…
I’ve been skeptical about RIMM’s prospects for as long as I can remember, and today demonstrated why I’m unwilling to hold stocks like this overnight. There might be a bounce in the works, but with this market being whipped about by coked out traders and depressed investors, I’m not really interested in participating. The psychology…
Since mid December 2008, GLD has been making higher highs and higher lows, signaling an uptrend. Volume is increasing on up days, and diminishes during down days, conditions ideal for investors. Coupled with technical strength, the fundamentals look good as economic turmoil and government stimulus drive this investment thesis. From a risk management perspective, a…
Good luck is what happens when preparation meets opportunity, bad luck is what happens when lack of preparation meets a challenge. – Paul Krugman (Economist, NY Times 3/3/2006) I’m no fan of Dr. Krugman, but his intelligence shines forth in this quote. Luck favors the prepared. Mentally anticipating change is adaptive, necessary for being a…