Another new high on Monday morning. I guess less and less shorts want to keep their positions over the weekend so once this sequence fails it might be a spectacular failure

Now, there is a key set line right here, so watch if it rolls over, or just checks back in and then up. Put together the key area for a checkback so you can evaluate the checkback and figure the probalility it is a checkback vs. a rollover. The set line it is at right now is a little 'tricky', but there is a logical reason to do the set that way. If you don't see it and are a mentor student, ask me in our next session.

I hope at someone is following this in real time, it is so cool. Right back to the key line intersection for the checkback that I had and straight up off it. Now we see if this is simply postponing the decision to the last minute (it looks like that is what it is doing), or if this is a 'real' move here.

Well, I guess not. Let me say again, it was cool.

Lately I've been reading some partical physics and cosmology books (I do that for fun...), and one of the quantum apsects that is very hard to grasp for the human mind (like how time changes depending on velocity, as explained by Einstein, is hard to grasp) is the role of the observer. One thoery with a lot of evidence to support it is the idea that all possibilities exist simultaneously, and it isn't until an observer comes into the picture that one reality occurs (the wave function collapses). It is a bizarre and possibly true theory. I mention this here because it reminds me of seeing something so cool, but if there are no other observers, somehow it is different. Something that I can't share.

Sure, the 'wave function' of the market collapses and the reality we see on the charts happens, but that is after the fact then. To see it as it sets up, if that quantum law is correct (many of the top physicists in the world today think it is) then I may be the observer who collapses the wave function and makes it a reality for all of us to see, as I seem to be the only one who sees it. I'm just musing and having some fun here, interjecting some quantum theory into the market. Don't take anything I am saying here as more than just playing around with some wild theories from physics. But, it is very 'trippy' stuff to ponder.

Jim - would you call the recent action a possible 3D right into the spike line and maybe even a double top with January's high?

jarek,

First off, the power of the 3D for me is only when it hits into a PTA. Although we are at the level of a previous high in the ES, we are far above the previous highs on many other broad indices. An equal top doesn't make a PTA for me. Also, when I don't have a strong PTA, then using any part of the 3D for the spike line also lessens its value for me. Finally, again, this is countertrend. Given that, the $MID, which I feel is the most critical right now as far as representing the action (and the $RUT), is right at its 1.272 and line area, so although it may go a lot higher with no real checkback, it is in the key first management area right now, so I am ready for a bigger checkback. This, though, on a day when the crap financials are just exploding and 'breaking out'. So, I'm not all that bearish just yet.

I actually think that this potential double top at S&P (without taking out January's high) would be more bullish than bearish in the longer term. It would simply allow those Wave 3 callers hang around for a little longer and maybe even add to their positions...

Just keep in mind that every new high in every issue is a 'failed' double top. People only seem to see the ones that play out, but those are far, far, far outnumbered by those that fail. I give almost no credence to double top areas unless they are a full-blown PTA already. But what you say about fuel for the fire, it may be true, and part of what creates the continuation in many cases.

They are trying to make it look, right here, like they want to sell this off hard. I am suspicious at how clearly they are making it look that way...

These are the lines I was watching today. I know though that Jim will not like the ABCD labeling - "where is the trend, where is the correction?" :-)

Originally posted by jimkane

They are trying to make it look, right here, like they want to sell this off hard. I am suspicious at how clearly they are making it look that way...

I guess it looked like that because it was, indeed, going to sell hard. Cool how I can sometimes see this so early, eh? But I am still suspicious, and since they now have a lot of shorts in here, it may still be a trap. We'll see.

the computers are good... but our tools have got'em pegged...