Tuesday, July 22, 2014
Monday, July 21, 2014
This isn't really a concern for us, as they say, Bulls make money and BEARS make money, it's knowing when to move from one to the other as to not become the PIG that gets slaughtered.
Just a few charts that should raise the red flags...
The Russell 3000 A/D line (green) vs the Russell 3000 (red)
These are the Percentage of NYSE Stocks Trading Above their 40-day, 200 day or 1 or 2 standard deviations above their 40-day or 200 day moving averages.
Seeing red flags yet? Unfortunately for most traders, Wall Street never makes it that simple...
Wednesday, July 16, 2014
BE SURE TO SEE OUR PROPRIETARY 3C INDICATOR USED AT OUR MEMBERS' SITE, WOLF ON WALL STREET, COMPARISON BETWEEN THE 1929 TOP AND NOW.
If you didn't get the message when the F_E_D changed guidance from quantitative to the arbitrary and easy to manipulate, "Qualitative, you can be forgiven, although we did point this out at the time that the only reason to do such a thing was to allow the F_E_D to find an exit from their $4 trillion plus expansion of their balance sheet.
However, if you didn't get the message when St. Louis F_E_D president James Bullard said , "The Markets are Wrong, the market doesn't appreciate how close we are to our goals" which should be read as tightening rates, then you didn't want to get it.
However if you missed Yellen's 180 degree turn yesterday, chronicled last night in the Daily Wrap.. Don't Want to Miss post, you just weren't paying attention. The F_E_D is SCREAMING exactly what I thought the day before the last F_O_M_C meeting,
"THEIR HANDS ARE TIED BECAUSE OF INFLATION AND REAL FALLING WAGES, THEY HAVE TO HIKE RATES WHETHER THEY WANT TO OR NOT. "
NOW, in addition to Bullard, Yellen, Kocherlakota and several others, Dallas F_E_D president, Richard Fisher said today,
- DALLAS FED PRESIDENT FISHER SAYS 'MARKETS ARE OVERSHOOTING'
- FISHER CONCERNED FED MAY 'BE STAYING TOO LOOSE TOO LONG'
- FISHER: I DON'T THINK YOU SHOULD 'POP' A BUBBLE, BUT SHOULD LET SOME SPECULATIVE STEAM OUT OF MARKETS
Did you know the F_E_D had engaged in QE in the 1920's, but this time it worked for a while leading to the roaring 20's, a time of economic expansion, but it seems the market ultimately paid the price for QE even back then. Note the year long 3C negative divegrence.
Now the same 1-day 3C chart on the Dow 30 now...
Now, as usual, the longer 3C charts show heavier underlying flow, it seems in 1929 it wasn't as heavy and had not made it to the 4-day chart very much (3C migration)
Tuesday, July 15, 2014
Monday, July 14, 2014
This is the entry post from July 10th, we saw some very interesting signals on what had just been a short term selling climax, which makes it easy for smart money to accumulate on the cheap and in size, exactly what they need with their position sizes without ever alerting anyone to what they are up to as few people who are stopped out ever consider who's taking the other side of the trade, still we need good signals giving us strong objective evidence that the shares were accumulated. For MCP, there were nearly a dozen charts in the "charts" post, but here's the gist of the signal in one chart.
Again, one chart doesn't do our analysis justice, but to sum up the reason for the entry, here's DUST's positive divergence/accumulation Friday, one of the reasons we entered.
Here's today's exit post for DUST at an +8% gain for a single day.