After another great Jim's monthly commentary there is no much left to show here. Maybe I'll just add two other major indexes, which like everything else shown by Jim sit currently in make or brake areas:





In my opinion the upcoming move in either direction will be kind of "everything the same" violent and sustained move. The reason for this will be fear driving the market both up and down.

The one driving everything up will be the fear of upcoming inflation. We should all realize that the only way out of this overwhelming debt the world is currently in is to make this debt worthless. Politicians of this world are not able either to save or to raise taxes to a level necessary to service the existing debt. So they will look for ways to inflate us out of this mess and will find them sooner or later. And they don't care at all about the price we all will have to pay for this.

The fear driving everything down will be the one of the coming correction which is overdue by any measure, of the economy not recovering and maybe poised for another leg down and of contracting overall credit despite of all Fed's initial efforts.

So we have two major forces pointing in opposite directions. Once one of them prevails it should cause a massive move in its direction. But since the countertrend force will also be based on fear then we should also expect sharp countertrend moves.

So fasten your seat belts, since after this relative calm of the last few weeks, we are in for a wild ride in 2010.

Jim, I missed that 0.447 from previous ABCD. How this number coincide
with important levels all the time !

Mats

Originally posted by jimkane

Big burst up and out of today's range, for a strong close at another new 'bull market' high?

Yep, we got the burst up and yet another new 'bull market' high, that was two new ones for today. Then it pulled back in a bit, which is surprising to me. Anyway, this reminds me of a story (what doesn't?).

I recall way back and at the time the Soviets were dominating weightlifting. Vasiliy Alekseyev was setting world record after world record, always besting his previous record by a tiny amount. At career end he set 80 world records and 81 Soviet records. I had heard his best lift, outside of competition, was way, way over what he did when he'd set a world record. I was thinking if I were him, I'd show up and just smoke everyone, blow them off the stage and demoralize them. He'd set a new world record by like a quarter pound.

Finally, I heard a discussion about how he was trying to set as many world records as he could for his career. So, if he blew them out, he'd set one world record, and that would be it. This way, he set 80, and 81 Soviet records. What a run. And the point? Every day the market sets another record for the bull, by just a little bit. Sometimes two records for the day. Day after day, setting record after record. A slow grind. It really reminds me of Alekseyev.

Sure, we'll see some one and two day pullbacks, maybe tomorrow, but the odds favor more and more and more new records, day after day after day, in my opinion. Hey, I don't care what it does, up or down, as long as it keeps doing these beautiful setups. But the pattern right now is as I've explained. Someday that will change. Maybe soon, maybe not. But until it does, I'll be trying to lean on that.

No posts at all today in this topic? Where is everyone? I can't do it all.

So, another nominal new high today for the 'bull market'. Big surprise.

Notice the financials are exploding, leading this thing up. XLF really on the move. WFC (still moving right off that primo ABCD setup), JPM, GS, GE, and look at those regionals! And while you're at it, look at those homebuilders. Existing home sales drop 16% and the homebuilders explode. Look at the $HGX. I think the next big leg up is starting, with new leaders, the financials and the homebuilders!

Heavy red line is the conventional ML from the 2002 low. Not exactly an impulsive sell off from it.

And in keeping with 'tradition', there's the second new high today for the entire 'bull market' :-)

Wheeeeeeeeeeeeeeeeeeeeeeeeeeeeeeeee!

Wow, look at that, right off the 1.272 area and my IB zone, and swoooosh, they crush it.

And there was also a big 60-min all-sessions spike line right there, too.

Anyone ready for three new 'bull market' highs in one day?

Anyone besides Jim, I mean?

Yes, roofer, your charts have been awesome, and I think very helpful to the crew.