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Year will be saved,shorts will be crushed


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There was a lot of sideways stuff the last few days. One thing I have learned from my recent coding is that sideways action with a few counter trend spikes throws indicators into divergences. That is how the math works. And when you get countertrend spikes on sideways stuff that creates double bottoms and other patterns we are all used to. Anyways,it just needed a spark. I was on the wrong side of it (of course) but made back a bit today. Such is life.

 

What is really epic is what this rally will set up in the new year - crap retail numbers will come out proving out demand destruction and the "E" in P/E ratios will get shrunk once the US is seen as on the same contractionary economic path as China and Europe. Right now the bet is the US will pull everyone out. When the retail numbers show (restaurants are a leading indicator here and traffic is down) then the mass realization hits. Sometime after this week.

 

Tight stops.

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Posted this on the other thread....

 

Bungster, on 20 December 2011 - 12:25 PM, said:Something in the charts... or otherwise?

 

Just applying Laundry's T stuff.

 

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BTW, I am nowhere near as bullish as you guys are. I think there is just few percentage points left on the upside but they'll stretch it into year end. IMVHO

 

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Madness, your 1680 target on gold sounds right...but if the trade goes wrong, where would you place your stop? Any thoughts would be appreciated.

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Posted this on the other thread....

 

Bungster, on 20 December 2011 - 12:25 PM, said:Something in the charts... or otherwise?

 

Just applying Laundry's T stuff.

 

----

 

BTW, I am nowhere near as bullish as you guys are. I think there is just few percentage points left on the upside but they'll stretch it into year end. IMVHO

 

----

 

Madness, your 1680 target on gold sounds right...but if the trade goes wrong, where would you place your stop? Any thoughts would be appreciated.

 

Right now, i have 1585 (Monday's low) as the stop for my other half. I'll adjust again if we get above the 200 dma at 1620.

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Gotta love this -

 

http://www.bloomberg.com/news/2011-12-20/oil-climbs-for-second-day-as-u-s-housing-starts-climb-iran-concern-grows.html

 

Key quote:

 

“In the U.S., the economy is on the road to recovery, with falling unemployment and consistently improving growth against a background of low and falling oil stockpiles,” said Christopher Bellew, a senior broker at Jefferies Bache Ltd. in London.

 

 

Got that?

 

The US is in recovery ---> Oil prices go up -----> shrinking disposable incomes in a shrinking employment base (which produces "falling unemployment") shrink yet more ----> All is well!

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