Warning: Its going to get rough

http://stockcharts.com/h-sc/ui?s=$RUA&p=W&b=5&g=0&id=p65893415456

At around 2:30, all of my charts started to take a big dump violating moving averages and moving across technical parameters. I looked for news in all of my individual stocks. No news that would have set this selloff.

Then checked all the indexes and it appeared that around 2:30 everything started heading down.

Then I turned on CNBC to see if something happened, a world event? Nope.

Then I looked at the above chart. I have not used the weekly chart with bollinger bands before. Notice each time the total market has touched the upper Bollinger Band there was either

1) A correction to the lower Bollinger usually lasting weeks to months.

or

2) A pullback lasting a 1-4 weeks before running higher.

We are now at a point where things might get rough either for a week or more and it might or might not get a little rocky.

Hopefully, this is a temporary event. You might consider buying one of the ultrashort indexes.

I dont expect the rest of this week to be positive.

 

Whats interesting today is the FXI and CAF are rolling over while Shanghei makes a new high last night. Might be time for a China implosion.

 

fxi hasn't floowed china in 4 months. i was short the fxi at 116 when china was 2700. china 40% higher than that and fix 10% lower

 

china is closed for rest of week

No need to worry

 

Sell in May effect kicking in?

 

Or the usual Wall St anal-yst nonsense like the market is "tired" and it needs to take a nap.

 

I'm glad we're selling now

it puts less preasure on the Asian indexes which have been selling off a lot recently

Also it looks like stupid money is selling into the close again

let them

and stupid shorts are entering


nasdaq falling in chunks of .03-.06% every 30-60 seconds

 

could also be profit taking since it's April 30th....

 

GROW's doing good

 

I think you should re-read my original post.

Let me be plain. Judging by history, its either:

1) a 10% correction lasting several weeks to months

or

2) a 1-2% pullback lasting 1-4 weeks (or at least until the market can clear away from the top Bollinger)

I tend to believe it wont be a 10% correction, but cant leave out the possibility.

I believe it will be a pullback similiar to the one in October 2006 when the total market reached the top Bollinger Band. It will probably last 1 week.

In any event, if its not a 10% correction, and the market does go higher then its a signal that there will be a correction in the future. June, July, Sept, Oct. Think October 2006.

Its safe to buy GROW at this level, my opinion. My price target is in the 40s.