Monthly Archives: August 2008

Last week I wrote that: “I think we will break through the 50-day moving average at 1302 next week, as our old friend 1326, a key attractor/repeller level going either up or down, pulls the market up. If there’s as much energy available as I think, after a bit of consolidation around 1326 we should see the S&P climb above its 200-day moving average at 1377 and move pretty quickly back to the 1440 level than stopped it on May 19. From there, we will find out if the next stop is new highs and a possible parabolic leg up,...

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It’s a rodeo market–if you can stay on the bull more than eight seconds, you win. Rodeo bulls are experienced, tricky animals that twist, jump and drop in explosive ways to unseat their riders as quickly as possible. Sound familiar? Beginning bull markets do the same thing, chasing everyone to the sidelines before they start their big up-move. Bear markets, in contrast, are like a lazy summer day by a sweet-smelling river, lulling everyone to sleep just before the flash flood comes roaring down to wipe everything out before anyone can get to high ground. A market this frustrating and...

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