Here's the 4-Point I was discussing in Jim's Thoughts, with my key set. The key set line was the main factor for me. On the S&P cash it hit the line and 'tested' it three times pretty much dead on. No matter how you label this ABCD, it was an ABCD to me at a key line, with 'context'.





Now we sit at a key line, with TICK hitting an extreme, 1-min volume short-term climactic, and so on. It would be something to see if they can't bounce this up here. What a play so far, though, eh?!

Also, as a curiosity, the 1.618 hits near that lower //, just about at Laundry's low move for this leg. Very interesting.


Chart created on QCharts, courtesy eSignal.

I'd watch it real close. I'm not big on shorting anything but quick intraday moves on a day the Transports are up over 10% at the HOD. Is that unreal, or what?

it's complicated

Notice we are back at that same level, and it goes back into chop again. Very curious.

yup, hence my comment. I can't read this.

midway point of the daily range= chop chop

$ getting killed again

just insane this chop.

Yep, I have major daily/weekly bearish setups on just about all the currencies, they reacted right off the areas, went to spots you don't want to see them react at, and rocketed up. Now they sit at 'test' points to blow out the bearish patterns. At the least you (you meaning anyone) really don't want to see them do these kinds of tests, because, as I have said, you get to the point where you are trying to talk yourself into it still being within the confines of the pattern's acceptable behavior, but it's a bad sign. And it's playing out here in full force. Says to me the consensus is they decided to drop the dollar. I just heard talk about how the EC wants to see the Euro at 1.47. Not sure why they would want to hurt their exporters by strengthening their currency when everyone wants to depreciate theirs.

I also saw that the ECB surprised and only lowered 25 beepers instead of the expected 50. Shows, to me, that they are still delusional and way behind the curve. I saw the funniest writeup on this. Since they say, politically, they can't go below 1.00%, they had two 'bullets' left in the gun for today. They used only one. The word was 'They saved the last bullet for themselves'. Funniest thing I ever heard.

Things looking good so far here. Carl Futia is calling for 875 tomorrow, and RIMM just reported blowout earnings and they are exploding beyond belief. Look at a 1-min aftermarket chart. I suspect we may see my 883 area tomorrow, if they even slow it down there. Funny how the ES is not exploding, just going up nicely. Nice time to still be riding SPY calls. T, you still in, I assume?

I stand a bit corrected. Carl is calling for 855 tomorrow, and then 875 next week.

I agree, T, with pretty much everything you've said. I commented a little in my weekend commentary on the unlikelihood this is a 'bull market', given all the things it is doing that have never been seen at the start of a bull market before. The intermarket dynamics are indeed pointing to the possibility of something big happening soon.

I also agree 100% with the potential doomsday scenario. There was a time when I thought all that stuff was 'crackpot' nonsense. Then I started to think maybe some of it might be true. Now I tend to think I just see no way that we won't crash back into the stone age. I try and try, but I just can't see how it can be avoided. I even think it may be engineered, not simply something that happened because of greed gone wild. I never, ever believed I would ever think something like that, but I also never thought I would ever see even 10% of what I have seen so far. Sure doesn't make me happy or hopeful for all of our futures, as you say, as 'citizens of mankind' :-(

Great market concepts, T.