Thursday, November 13, 2008

Dow has retested the Low, Bull will push the Fear, Greed and Inflation is back. DIA, SPY, QQQQ, FXI, EWZ, GDX


I hope I will not spoil it...In the beginning of the day Bottom seems to be falling off with the last Hope. News are all Negative and the last faith is lost. I guess it is how Mr Market is testing us. Another important observation: Who is leading Whom - China was up more then 4% after its more in Depth Stimulus Package appreciation and today we have experienced Powerful Retest of Low. All three major Charts has been alligned today: Dow restest of the Low, Fear VIX made lower high on this Retest and USD has made Second High forming Double Top. Everything is ready for transition: Fear for what has been left of your Capital to Greed and chasing perfomance. Dow is only the refference point for us - our heart belong to another tangible Things which are Nessesary as always. We were worring about mere existence of the Financial System, then Currencies and now Deflation. Time is to stop worry, let FED fight Deflation and position our pennies for Inflation Tide. Technical Analyses is never a pure scince and is only a way of Meditation on the Way of Things. It only works for those who are making money and it never works for those who are losing. I do not know what kind of fundamental shift it is Painting for us today: news are awful, "deflation is everywhere" and no Hope left for our Gold, Silver and Commodities Bull. But there is a Knowledge in the Market and those who know are leaving their footprints. We mere mortals can not call to Hank or Ben, but some others can...They are making money and we can see it on the picture. Trends are Bigger then Life and money involved are Big, so we can try to make our small stake on it: following the major Trend - Debasing of the former Empire currency. One of the "unknown" fundamentals TA is telling us now could be coordinated action after 15th of November with Rates Cut and weakening US Dollar policies - Quantitative Easing is all over mind those in power now. Trade will be made to prevent the collapse and allow orderly decline of the currency to stimulate Export and bring Inflation back.

No comments: