What will hold up?
As you can see from our chart set, our major indices are trading very much in synch, more likely than not propelled by trade-bots that already have the next 25 trading days already mapped out to take us through the end of the quarter. Of course you can argue that it’s perfectly natural for 8 of 9 different indexes to follow virtually identical patterns as a result of the random trading of millions of individuals trading Trillions of Dollars worldwide and that’s your perogative. I prefer to think of it as one giant scam and then figure out ways to make a little money off it for ourselves…
Several times last week I said to members I thought “THEY” were running the market higher so they could sell calls to suckers at high prices but, in general, the move was “fake, Fake, FAKE.” What do we do in the face of flagrant market manipulation? What do you think we do – we play along! We don’t complain about good manipulation when we see it – we join in! Don’t be confused by the fact that I complain about it in my morning post – once the bell rings we move right to the other side of the table and happily run with the wolf pack. We’ve tried to fight the power – it’s not fun, nor is it profitable…
We remained fairly conservative last week and, as I discussed in our “Weekend Trend Spotting” post, we are more inclined to believe we are in a range that centers around 10,400 than about to break back over 10,700. The bounce zones we predicted when we first began to sell off in January are finally being tested (red lines on above charts) but the 5% line (blue lines) are still exerting a pull and we NEED some healthy consolidation in between those blue and red lines if we are ever going to get serious about making a real move higher.
Speaking of healthy consolidation – Congrats to our own David Ristau of the Oxen Group and all the members who played along with yesterday’s specially featured selection of SAH. David nailed it in his 1pm post (also sending out a 1:06 Alert to our Members) and put us into the stock right in his target range at $9.45 and it looks like we’re getting a nice 3-cent beat this morning (20%) and this should be a very nice 5% day-trade gain. We also played the longer-term March…