Either this is the ultimate buy signal or I'm right. I would like to think the latter is true this time. You can thank me later.
May 26: ' Key equity index charts are increasingly bearish and unfortunately a major sell off is guaranteed. I get no joy from being so bearish but thatâs what the indicators say ' http://stockmarket618.wordpress.com
Its taboo to even mention the word, Indicators here at ET. You see, everyone here is a PURE PRICE ACTION TRADER.
Economy Stupid. Period. I doubt the crash will happen. It will be the same mirror image of what happen after the Rally in the First Great Depression. Volume is drying up fast right now and we are heading into summer. Volatility is rising fast as well. All the Econ news is bad and even worse if you consider the FED and GOV have been flooding the Econ with money and we still have ISM almost near contraction. IMHO this is the start of the second leg down in the Depression that will wreck havic on the US and parts of the EU. 90% of the US population will feel the truth and the hurt of weight of what we are in ...DEPRESSION. Yet, even with the soon to be Main Stream headlines in to Read SECOND GREAT DEPRESSION (with in 6 months IMHO) the stock market will slowly fall.....choppy, sideways moves followed by choppy down moves. To much "Interference" and new Short Rules, Circuit Breakers to allow a crash.
QE3 will happen in some form or another to keep the yield curve in the US steepâ¦we need a steep curve in order to keep this house of cards rollingâ¦.Bernanke bailed out the banks with Tarp, and in order for the govt to get that money back (and not sustain a loss) they need a steep curve, which is what Bernanke has been giving them via QE so the loss to the taxpayer is minimal (bernanke knows banks arenât lending the cash out, but just using it to play the Carry Trade on the back of the USD, but we are in a phase of deleveraging, so higher credit card limits to the average American really would just make matters worse)â¦.on the same note, Obama is bailing out the poor and unemployed with all the welfare paymentsâ¦the middle class is the one footing the bill for both sides of these bailouts. And we got the whole mess in the EU and southern Europe. If Germany was smart they should be the ones to say Fâit and bring just back the D-Mark and let France deal with the PIGS and the whole situation in North Africa. Japan has a handful of problems with the earthquake. China, if they are going to be so bullish going forward, why are they listing so many IPOs? Companies go public to provide liquidity for upper management to sell and get out, if there economy is going to be so bullish in the years to come and be the next super power, why are they selling all these companies now? This current IPO market is another massive bubble forming if you ask me.
I have a swing system coded that gives around two trades a month for the Eurostoxx 50. I got a short signal on monday night. So I'm expecting at least 4 or five days of weakness from here - although Thursday may be a consolidation day.