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Chartology
By thetrader.se
As we mentioned this morning, the squeeze set up is here, and we expect the move up to be brutal, as many of the permabulls have now joined the bears. Sentiment indicators are reading extreme bearishness, and therefore we expect the squeeze to continue higher. Every pundit is now talking as if Europe is bust, and that is too late. The squeeze is in, and will kill many of the new “smart” shorts. Below some of our most important charts, as of Friday close.
SPX
DOW
NDX
VIX
Stoxx 50
For all charts please check Chartology.
We seldom comment on individual stocks, but there are many opportunities showing up as the markets have approached extreme levels. We are structurally bearish on the Economy etc, but the market has reached some very interesting levels, and we expect a brutal squeeze to the upside. With many of the companies, investors praised, and other firms wanted to buy, having reached levels, in some cases 50% down from highs, expect some M&A activity to revive. One example being the Canadian company Lundin Mining. Some few weeks ago, the Chinese were fighting to buy it. Now the stock has dropped close to 50% from those levels. For industrial players, there is some opportunity to buy assets at a great discount. Below Lundin (Canada).
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When you live in a fiat world with manipulated markets then anything is possible. We are now getting a lot of deflation and pessimistic stories from the MSM because that is what the FED needs to create the political environment for more stimulus. Gold, Silver and the rest of the commodity complex need to come down to both reinforce this concept and reset them to a lower base before any new stimulus. If Bernanke had announced new stimulus 2 months ago everyone would be against it. How about now?
Advise to chartists: Look out the window on occasion (read: charts are backward-looking while fundamentals and experience tell the rest of the story). I'm with Art Cashin and looking for capitulation. Charts be damned.
I only agree on the Lundin part, its close to a buy.
I wonder just who's "money" will be used to "squeeze" the "shorts", eh?! Any meaningful rally needs some more then jsut a few squeezes, I rather think this thing called market is heading lower, much lower from here!
After some "leaked confesions" markets will dive dive dive, then the FEDsters will step in, they need an outright deep panic to get to the printing presses! just not IN at the moment!
Down markets are always very choppy, daytrading especially requires tarot cards and voodoo magic :) When people lose money, they make in many times even worse irrational decisions.
Wow. Could not disagree more with this post. The idea that the market will go on a meaningful rally ahead of European confession time is quite the stretch.
I think this assessment could be true...if the system, the markets, the current crop of criminal crony banks had ANY credibility left at all. But they don't.
if Euroland is bust then the scenario gets mega worse. Lets see if Germany "can kicks" or comes up with a real solution. Its their call. EU needs profound and deep institutional and economic reform whatever the short term resolution of this banking cum sovereign run.
Faber is right, for gold, the price will go up now, as it rebounds quite sharply, though not higher than 1800 in November, for a few months till March 2012, or so when it will fall again back to 1600. For silver, on other hand, the corridor till Q2 2012 is pretty flat- 25-32 USD- but then it may start moving to reach 80-100USD. At least that is what the charts say.
Gold will however take long time to reach above 2000 USD.
Silver went to 26 on Monday, amazing! Exactly where it was predicted to land in this time in this March prediction chart(25-32USD corridor in H2 2011).:
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=40#p31020
and gold went to 1550! fantastic: Again, exactly where it was expected to be in this April prediction ( which predicted also the bubble-well I expected it to be there in November) - down to 1500-1600 in November 2011.And I expected bubble and crash in October- it happened in September..
http://saposjoint.net/Forum/viewtopic.php?f=14&t=2626&st=0&sk=t&sd=a&start=220#p32176
Can't see the first two charts because the ads are in the way Tyler.
Ctrl + - to zoom out
Ctrl + 0 to go back to normal
Happy surfing
click on the chartology link................it will take you to The Trader site.
try a "no-add" browser like Firefox, Moz...etc
What is the good news?
You can buy out of the money DEC VIX calls on January 1st of every year, and hold them knowing at some point during the calendar year, there will be one EXTRA BIG-ASS CRISIS that pays off triple or quadruple.
The clowns are running the circus. Bet on at least one broken plate per year for here on out.
Great, burn the shorts again, then when finally no one dares short against the computers we can get to some real vacuum tube market melt downs.
See: http://www.zerohedge.com/contributed/investor-sentiment-ugly-there-alway...