Anatomy of a Short

ORIGINAL POST:  10:50 AM PDT Just a little experiment here, to demonstrate how technical trading works.  Bank of America, hailed as a screaming buy after losing only $8.8 billion in the latest quarter, is currently trading at about 10.24. It seems pretty well stuck in a descending channel that’s had BAC circling the drain since … continue reading →

Ten Lousy Points

Anyone who’s read this blog over the past couple of months knows I’m confident we’re following in the footsteps of the 2007 top (and most of the other significant tops since the 1930s.)  If you’re new here, take 30 minutes and read through the posts listed here. Lots of euphoria in the markets today.  Great … continue reading →

The Waiting Game

Friday’s action brought us closer to the apex on the SPX bullish falling wedge (60 minute chart).  In addition, there is divergence in the histogram, the stochastic and the RSI vis-a-vis the index. VIX broke out of its bearish falling wedge at the end of the day.  The technical indicators are flashing negative — positive … continue reading →

A friend just tipped me to the fact that Elliott Wave International pronounced yesterday that 2011 and 2007 exhibit a “similar topping pattern.” OH!  MY!  GOSH! I only wish I had had this very valuable information when I posted back on May 31.  Oh, wait, I did.  When I made the exact same observation.  But … continue reading →