Here is the longer term bearish 4PT we've been talking about lately:




Both breaking it to the upside and respecting it should result in a strong and sustained move in the given direction

Note I'm referring to the short-term TL from the 25th, not the longer-term one going back to the 9th. That one resides around 1190, not accounting for time. The longer it takes, the lower it will be when price hits it, of course.

Amazing that line stopped it dead, and it has crept it in a slight dowtrend for about an hour and forty minutes so far. This still portends an upside breakout, but it is very interesting how it rushed up so strong, acted like a breakout was imminent, and then just gave up. I just love price action and the market. I think reading price action is my favorite component of trading.

Just got up to check things out, the line gave way as expected, up over 10 off that low. So far, so good. But you never know, sometimes they start like this and then crater. The higher timeframe odds still favor a downside breakout, I think, even if only as a stop run trap. I may post later if I check again and see anything...

Didn't even get away from the screen and it exploded up. Remember to watch that 90 area and that super-key TL just above...

again, i am focused on this larger geometry and watching ''rushes to the dance'' to try to setup larger short trade....

it is remarkable, but to be expected, because they'' went early'', that 3 of the 4 stocks i am position trade short are DOWN despite the rally....

Kane 4 PCP ABCD completing at 0.300 Fibo. Nice price rise off Point D of the Kane ABCD. Thanks Jim, & thanks roofer, jarek, Mats & all the other Kane Traders.

Good Trading,

Al Kamego

This play still hasn't triggered a single scale out yet... Notice that super-key TL at the 90 area was completely ignored. That's a major breakout and change in the entire layout. The 'coil' broke to the upside instead of the expected downside. Since Mar '09, this is not uncommon. 'They' know what is setting up and they 'make it not so', I feel. We'll see if this is a sucker trap breakout or not, but given who is behind upmoves, I'd say my bullish ramblings are playing out. I mean, we sit less than a half a day's move from a new high for the entire 'bull' market... Midcaps, Transports, Retail Index, all hit new highs today for the entire 'bull' market. They are the leaders.

Wow, as I type this, look at that little dump in the ES...

Originally posted by jimkane

...the line gave way as expected, up over 10 off that low. So far, so good...

Last thought to better explain the above. Here's what the conventional thinking is. Crude and the comms start to rise. Pump gas rises and all this puts a big crimp in the economy, and the prices drop due to the dropping demand of a weakening economy. Crude can never get to $200 (or $1,000) because demand will drop tremendously way before then. Now, here's what the conventional thinkers are missing.

Money printing causes a repricing of comms higher, and the excess cash flows into hard assets, giving the double whammy to the rise. Once this trickles down (and pump gas and grocery shelf food prices are the two biggest ways I feel this kills the average American), the economy will slow rapidly. The FED will respond with more money printing, which not only steals whatever tiny little bit is left of your cash savings, it will reprice the comms higher, and feed excess cash into hard assets, with even more vigor, as the debasement is obvious. Demand drops, and prices rocket higher.

This is the acceleration phase of hyperinflation. Wages don't keep up, savings are destroyed, the economy gets a lot worse, and the FED prints more money. The loop is complete, and it feeds on itself. This is what has begun, in my opinion, and nothing in heaven or on earth can stop it. It reminds me of an old TV commercial, which showed a guy on a merry-go-round type thing, and he was saying 'I have to work longer, to make more money, to buy more cocaine, so I can work longer, to make more money, so I can...' faster and faster, until he eventually explodes I would guess.

That's our system right now, and they've gone too far to stop it, change it, or ever admit they were wrong. They are going to blow us all up, and we are all going to stand by and watch. Mark my words. And although this is just one man's opinion and nothing more, you know my track record on reading things...

Have a great weekend.