Monday, November 21, 2011

We are 1 day into a bear market !

On this chart from 2009 -2011 you can see the action of the buy and sell area's 80 overbought take a minimum short, over 90 a strong short.

To go long I use 15 to take a small long but 8 or under you need to load the boat.
We are today 11-21-11 -- 1 day into bear market. An area that could whip.

StockCharts version is$SPXA50R&p=D&yr=1&mn=1&dy=0&id=p16006213521&listNum=3&a=206277545
Next we have 2007 to 2009.
I have the ATH market in Oct 2007 marked in Green. You will notice it was hard to find a move above 80.I have no idea why 2011 had 90's.

I have marked divergence also.

NEXT 2001 - 2003


This is as far back as I could go.
Coming out of the bear give more idea's of where we should go if this bear is in the works finally.


Sunday, November 20, 2011

Monday UP !

Bullish Monday, why.
Screw the Committee in DC. To many think it bearish.
Vix + SPX down = up day.
Inside day = Up.
Spy up +.17 after hrs.
Index PcR .88 = extreme seen near highs in a few days from now. Leading indicator.
Seasonally bullish. Will watch 1217 then 1220 for strength. Spx.

What if it's a bear trap.
We will look at this chart.

L 1249,Buy on 3-23@ 1297 High 1339 + 42 pts
June 1st sell 1314 Buy June 30 1320 -6 pts sell high July 7th 1356 + 36 pts
Sell-July 27th 1304 low 10-4 1074 etc.
Using the buy/sell on this chart from is useless but if you tweak it there are big opportunity's.
This chart clearly shows we are topping at 1292 and perhaps ready for a big slide. Cross the green line is a clue but Friday we had a little hint of a turn. Nothing goes straight down.

Jerry O

Barcharts suggest a sell mode!$SPX