Shoulda, Coulda, Woulda…

As the harmonics suggested last Tuesday, we broke out of the channel and are up 12 points this morning.  But, we need a breather after this morning’s skinning of the bears.  Short term, the market’s technically overbought. We will need to digest a bit of the rise, pausing to retrace probably somewhere between the .618 … continue reading →

Remembering…

        Michael J. Novosel was only 19 when Pearl Harbor was attacked. Determined to fly for the Army Air Corps, he was too short to pass the flight medical. His friends carried him around on a stretcher for several days in the mistaken belief that he might grow a little if spared the effects of … continue reading →

Credit Default Swaps Hint at the Next Casualty

Short term US Government credit default swaps have more than tripled since April.  If this were solely the result of debt ceiling debate, I wouldn’t be so worried. http://blogs.wsj.com/marketbeat/2011/05/25/us-short-term-cds-spreads-sharply-wider/ I suspect it has more to do with the fact that US debt is forecast to exceed 155% of GDP by 2035 (see the report from … continue reading →

Who’ll Stop the Reign?

“BOSTON (MarketWatch) — It‘s cost $600 billion of your money. And it was supposed to rescue the economy. But has Ben Bernanke’s huge financial stimulus package, known as “Quantitative Easing 2,” actually worked as planned? … Turns out the program has created maybe 700,000 full-time jobs — at a cost of around $850,000 each.  House … continue reading →

You Say Potato…

Tuesday’s declines had an impact on the harmonic picture, but not exactly how I expected. The large bullish Gartley that has been forming since 4/18 was completed at the lows (* on the chart).  The smaller 5/17 – 5/22 bullish Gartley targeting 1352 failed due to the extension of the CD leg; but, thanks to … continue reading →

Skating on Thin Ice

Putting together the harmonics with important support and resistance levels, I’m looking for the Apr 20 gap to be filled, then a strong rebound, reaching the 1350 area in the next few days.  I still have a target of 1380 as the end of P[2], but am looking at the possibility of a truncated fifth … continue reading →

Does OPEX Matter?

This past Friday morning, with SPX down about 9 1/2, I made a crazy call based on some indicators I’ve been watching [more later tonight or tomorrow.]  They said the market would not only stop falling, but would completely reverse itself and open up, leaving a nice bullish hammer going into the weekend and thus, … continue reading →