Market Curiosity: Exploring Markets And Systems

June 1, 2011

Why stocks might trend down for a week or 2: Broken trend line and undercut important bar bases with volume. (update 1, June 2)

Filed under: Just Watching — Tags: , , — Jeff Fitzmyers @ 8:45 pm

– 9 month old trend line broken.

– Yesterdays low was undercut.
– The bounce off the trend line is providing support, but it is almost undercut too.
– The CCI configuration of the weekly under the monthly with the daily seemingly rolling over can indicate a quick move down.

Raymond Merriman: For the past 18 months, this column has correctly identified the “Asset Inflation Express” that would be in force concurrent with Jupiter and Uranus both entering into Aries last May-June 2010… I humbly acknowledge the insights of legendary market trader Ted Lee Fisher, who provided me with the basis for that idea while I was writing the Forecast 2010 Book in November 2009. He proposed the possibility and asked if there was some astrological signatures that would support it, as nearly everyone at the time was convinced the stock markets of the world were about to crash again. I asked computer programmer Sergey Tarassov of AIR software if he could provide a graphic correlation of Jupiter transiting through the signs of the zodiac over the part 100+ years, and also provide a reference as to the last time Jupiter and Uranus were in conjunction and also both in opposition to Saturn, as was the case in July-August 2010. He obliged and to my surprise, both were in a very bullish part of their cycles, and this bullish correspondence was not about to end. To the contrary, these planetary positions showed a market that was about to really take off, especially after June 2010. These graphic correlations and my interpretation of them are provided in both the Forecast 2010 and Forecast 2011 books… The reason I bring this up now is because Jupiter is leaving that sector of the sky next Saturday, June 4. It ingresses into Taurus… The point is that we are at a critical point in the orbit of Jupiter around the Sun. A long-term crest in the stock market is due, and a multi-year bear market is scheduled to commence once this “Asset Inflation Express” runs out of gas… er, cosmic energy.

Mr Merriman’s book written last November literally has a cool chart that has stocks up until “June 4th, 2011.” THEN THINGS ARE GENERALLY BEARISH UNTIL SEPTEMBER 2014.

Amanita Bradley Siderograph

The NYSE Summation Index hass divergence and the weekly is still pointing down.

A “reason” why: Zero Hedge: Did The Fed Just Give The Green Light To Sell The Stock Market? “Ironically… stocks are pricing in QE 3, but for QE 3 to happen stocks have to drop 20% from here…”

June 2: I wanted to be clear that stocks priced in gold or a commodity will very likely go down a lot, but stocks priced in dollars could go up a lot over time. I fully expect at least some significant — but brief — drops in dollar denominated stocks as people sell to get some buffer (cash, beans, bullion, bullets).

Buying the puts yesterday was a mistake. I closed them all this morning. “Xiphos Trading: It’s very unusual to get two back to back washout days like yesterday in broader market (TRIN >4 close). Happened once since the 2007 top. Cool chart here.” If the market does not drop significantly tomorrow, we might be at a near term low. Some stocks like COP, FCX are setting up for a decent bounce. Some high flyers like NFLX and CMG barely went down at all. I am expecting a low around June 13th-ish. If true, the stronger stocks will start running before that.

The fed/gov/cftc/ and banksters seem to be doing a masterful job of keeping the system alive. Walking on eggshells?

Leave a Comment »

No comments yet.

RSS feed for comments on this post.

Leave a Reply

Please log in using one of these methods to post your comment:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

Blog at WordPress.com.

%d bloggers like this: