DrStool

Have a great weak end. I'll be in and out. Reports coming.

We have reached price perfection. They can close the market for good.

The stock market has reached the perfect equilibrium price. 4395.

Most of the time, China breaks have no impact on the US. It just depends on whether the government is threatening overleveraged wealth funds with a firing squad. Then they do sell their US assets. So you may be right. Just not yet. We'll only know if and when the US starts to sell off concurrent with Asia.

I need to irrimmend that. It becomes relevant to US markets at the point that it begins to generate margin calls.

I know. I publish Doug's reports, and read his exec summaries, every week. Much respect. But I often do not agree with him.

The pullback hasn't phased the hourly cycle indicators.

We hope. 😀 But I don't believe Bullard is correct. Unless they want to see the 10 year at 3% "fairly rapidly."

On the hourly, looks like they need to clear 3407 to then have a significant move.

30 minute bars and their indicators look... what else.... Bullish!

Irrelevant an immaterial.

Talking about it is not significant. Doing it is something else altogether. Then we'll talk. We'll have to see who takes it, and what they do with it. Until then, only the dealers matter.

Here we go again. Another false breakout. Another plunge to the bottom of the range. We've seen this act before. It has all the earmarks of another developing megaphone pattern. Back in the old days, we called these patterns "broadening tops" because they invariably broke down into significant declines. Not any more. Megaphone patterns have become ubiquitous as the market trades in widening ranges. Like all patterns today, megaphones have the same meaning. We're going up. In modern technical analysis, if it's a pattern, it's bullish. Once the dealers are done shaking the trees, covering their shorts and picking up some long inventory for the next leg up. Sure those legs are getting shorter. Progress is slowing, reversal warnings are piling up. So what. It has been that way before in the past dozen years, and we've had only a couple of big breaks, including that one mammoth one of February-March 2020, of blessed memory. Here in this thread, we're only interested in the day to day. I cover the big picture outlook at Liquidity Trader's Technical Trader, which you can follow risk free for 90 days if you are a new subscriber. As for today, the overnight lows cracked the last couple intraday lows--they gotta make it look good-- but now have made a loop de loop and look headed back up. The 5 day and 2-3 day cycle projections are unmet at 4365, but hourly cycle indicators have curled upward. I don't know if they'll dip to 4365 or not, but if they do, and the hourly oscillators are at higher levels than the early overnight low, I'd bet on a minor low at that point. By the same token, if they don't pull back over the next few hours, and instead break 4404, then they'll probably retest yesterday's high. I see no reason to forecast a breakout from this week's range, either way. Meanwhile, big picture stuff. Prices Show Us Not to Argue with Mother Market Be Careful of that Yellow Stuff Chart Picks – Dipping Two Toes in the Meat Grinder How the Fed and Treasury Rig The Debt Ceiling Roulette Game Matters If you are a new visitor to the Stool, please register and join in! To post your observations and charts, and snide, but good-natured, comments, click here to register. Be sure to respond to the confirmation email which is sent instantly. If not in your inbox, check your spam filter. Here's a freebie on my reaction to what the Fed did this week. Fed Finally Starts the Standing Rippo Farcility

The Standing Hippo Facility?

Fed Finally Starts the Standing Rippo Farcility LEE ADLER LIQUIDITY TRADER JULY 29, 2021 0 COMMENTS They’ve been threatening to do it for two years, and finally pulled the trigger. The Fed’s captured media barely gave it lip service, with a…