Business Magazine

Thrill-Ride Thursday – Rumors Rule the Roost!

Posted on the 28 July 2011 by Phil's Stock World @philstockworld

That’s what the market is trading on now.  No one is waiting for an actual deal to be reached and we are getting that classic Bugs Bunny Market effect, where investors are stampeding in and out of positions whenever Lloyd and Co. throw the switch.  Once again we are forming the "M" pattern that we predicted on the Big Chart and we completed "neat" M’s yesterday, unlike the sloppy Ms we had in May and the neat M’s are bouncier, of course, because they lead to oversold conditions.  

We did get a bit oversold yesterday, as you can see from David Fry’s NYMO chart below, with a 2% drop in our indexes and the VIX rocketing up to 23, which is up 35% since Friday’s close.  Now THAT’s panic!  Note on the NYMO, we are no as oversold as we were in mid-June (when the Dow bottomed at 11,862 on Greek panic) and before that mid-March (Japan quake panic – Dow 11,555) and before that Mid November (China Panic – Dow 11,000) and before that late August of last year (State Governments were going to default – thanks Meredith! – Dow 10,000).  


Are you seeing a pattern here?  Aside from the fact that every quarter, the Gang of 12 finds some reason to stampede everyone out of equities and into Treasuries so they can buy low (from us) and then pump the markets back up so they can sell high (to us) – those panic lows are getting progressively higher:  10,000, 11,000, 11,555 and 11,862, which just so happens to be the -2.5% line on our big chart.  These are not coincidences folks, this is what happens when we let Robots control our markets!  

Thrill-Ride Thursday – Rumors Rule the Roost!
795 will be our first test line on the Russell but, if that holds, we will be happy to begin layering in some bullish bets as the fix will once again be in and all it will take is a little magical fairy dust sprinkled around by the IBanks and we can rally again.  What will it be?  What magic words will flip that switch and send investors flying back into equities? 

In this morning’s Alert to Members, I predicted that less than 400,000 people losing their jobs was likely to do the trick as we…

You Might Also Like :

Back to Featured Articles on Logo Paperblog

These articles might interest you :

  • Rewind: It’s the 90s

    Rewind: It’s

    It seems that the 1990s are everywhere right now. What’s old is new again and all that. The last concert of the summer, I took it to another level when I... Read more

    The 25 September 2018 by   Irene Gomes
  • Thomas Land | Drayton Manor Park

    Thomas Land Drayton Manor Park

    If living near a theme park was in your criteria for buying a house, then our new house would certainly meet that need. Living about a 3 minute drive from... Read more

    The 25 September 2018 by   Thefoodiecoupleblog
  • Your Eye Drops Can Kill You

    Your Drops Kill

    Anything can be a poison, it all depends on the dose. This includes the drops you use to clear your eyes. The active, and dangerous, ingredient in many of... Read more

    The 25 September 2018 by   Dplylemd
  • The Wood Brothers: "River Takes the Town" & "Happiness Jones" Dutch TV Live...

    Wood Brothers: "River Takes Town" "Happiness Jones" Dutch Live Videos

    Watch roots trio The Wood Brothers perform River Takes the Town and Happiness Jones two tracks from their latest album One Drop Of Truth for Dutch music show... Read more

    The 25 September 2018 by   Hctf
  • Opera Review: Falling Down

    Opera Review: Falling Down

    The Met opens with a disastrous Samson et Dalila. by Paul J. Pelkonen A world of toil: Robert Alagna does hard time in Samson et Dalila. Photo by Ken Howard ©... Read more

    The 25 September 2018 by   Superconductor
  • Could Neanderthals Speak? Implications of FOXP2

    FOXP2 is one of the most famous genes out there; notable for containing two mutations linked to language in humans. These mutations are also in Neanderthals,... Read more

    The 25 September 2018 by   Reprieve
  • Diet Doctor Podcast #3 – Dr. Jeffry Gerber and Ivor Cummins

    Ivor Cummins: Great to be here, Bret. Dr. Jeffry Gerber: Thanks, Bret. Bret: The first thing I want to talk to you about is I learned from you guys you have t... Read more

    The 25 September 2018 by   Dietdoctor