If I knew I would bet the whole account. If you don't bet, you can't win. (quote from Larry Hite) So we bet a little to make a lot. The big one will wash away the tears of the little ones. (Seykota) Now do we run straight to 1500 from that bottom and then crash or crash again soon and touch 800-750? Damn if I knew that, I would feed the poor with my own money.
You can only fool the market for so long by pumping this liquidity. Theres only one way to fix a borrow and spend problem... and when 70%GDP is national consumption.... I fear another depression as well. There was a small time period back around 1150-1200 where they could have staved this off and kept the ponzi scheme going, but thats out of the question now. I will be shorting the overhead zones... we have lower to go Some potential zones - SPX - 1070-1080 DJIA - 10350-10450 NDX - 1585-1625
I use SMA 9 and it is around 1040 for the SPX. I underestimated a bit yesterday...We might overshot it, but if we close below it, I expect a nice red day tomorrow... Here is the end of Jan beginning of Feb action, you can see the SMA bounces: Will it happen again? I don't know but that's what I expect...As you can see on the 3rd day of the sequence we overshot the SMA, but still ended up way below it. Now it might play out in 2 days instead of one...
notice how quickly sentiment changes with price action a few up days and sentiment does close to a 180..
What do you use to decide when to enter? By the way, have I already mentioned we have 2 upgaps in a row?