In "Chicken-a-tor" we all remember his parting vow........."I'll be back" said Chicken Little, "Asta La Vista Baby". And sure enough, he has returned, leading the pundits, supposed experts and talking heads while reiterating his battle cry, "The Sky is falling, the Sky is Falling"!
Is this the beginning of the end? OMG~
Is this finally the beginning of a correction? Ohhhhhh, Nooooooo!
Pullback! Downturn Ahead! We're tanking!
Blah, blah, blah, blah , blah, and more such gibberish.
Why is it that the media cronies and pundits are always trying so damned hard to sensationalize everything?
Ratings baby, we need MORE RATINGS! Walter Cronkite, where are you? And even more to the point, why to so many people even listen? Does anyone think for themselves anymore? Now there's a thought!! Thinking for yourself. OMG~! Shades of Don Worden, a mentor of many and great teacher who "Knighted" his followers who thought for themselves. BAM! POWIE! SHAZAM! We have a WINNER!
I mean really, a few days of sideways consolidation, not even dropping enough to touch the 20 EMA let alone move back to the 50 SMA and the pundits and naysayers are all over the place predicting doom and gloom. Here's a heads up people. No Rally ever went straight up continuously!! OMG George? REALLY? Yes, really. A rally requires consolidations and pullbacks to continue it's upward momentum without becoming overbought. (Someone should tell Apple that!! LOL It's recent parabolic rise is begging for a pullback.)
Also note that the VIX is under 20 and behaving well. (Chart below) The fear factor is subdued to normal risk levels. And the market is not having the wild 300 point swings we had last year. DUH!
I has also been pointed out by more than a few pundits that the Russell 2000 is in a negative divergence to the DIA and the SPY. All I can say to that is ............ DUH!! Coming out of the cellar, who wants to buy smaller, riskier stocks? Not me! I'll take the tried and true. Have you looked thru a list of the Russell 2000 components? If not, perhaps you should. These are far from anything "blue chip". I'd like to see things solidify more before I start buying stuff from the Russell 2000 index.
Sure, anything can happen. Sure, this could be the beginning of a downturn. And we plan for those possibilities. Can you say "Sell Stop"? The earth could vaporize at any moment. Could happen. An asteroid could collide with the earth. Could happen. The Mayan Calendar could be right and 2012 could be the end! Ohhhhh, no! Could happen. And this blog COULD self destruct after you read it. Could too happen~!!
Knock, knock, knock. "Hello McFly, anybody in there"? Knock, knock, knock.
Remember, we are technicians! We look at charts. We check the underlying fundamentals. We are the actuaries of the marketplace. We look at the past and try to predict the future. We knew Dow 13,000 would take some work to get thru. We've talked about just that. Lo and behold, that's what's happening!! OMG~ The shock, the surprise, the dismay! Amazingly enough the charts are saying nothing but constructive things. So please, let's take Chicken Little, place a muzzle on his mouth, and put him back in his cage. Let him stay there until we get to "Chicken-a-tor III: The Rise of the Machines"
CURRENT MARKET TRENDS
Short Term (Daily Chart) – Sideways Consolidation (Upward Bias intact)
Medium Term (3 day chart) – Sideways Consolidation (Upward Bias intact)
Long Term (Weekly Chart) – UP
No comments:
Post a Comment