Just getting ready...

And yes, the flat ABCD here did reach for that 6.50, but I think it will most likely explode up now.

I'm not doubting the pattern or my 6.50 level, only that it is acting more like chop or 'chop upwards' in here than still in downtrending mode. 'Context' and price action assessment, that's all.

So, to sum that up, this pattern and area here is the final management line in the sand for a partial position off that ABCD, based on my way of looking at things.

or snap down as the case may be

Got to love those final lines in the sand. Yeeeeee-haaaaaaaaaaaw.

Watch that 1198 previous key low. Got a tiger by the tail now...

So, here's a thought I've had. Recall how they talk about when those CDS trigger, the world will implode? I agree. But, Greece defaulted by any stretch of the imagination, and the CDS were deemed 'not triggered'. That which can't happen, won't. That's how they addressed the end of the world, they just said the obvious didn't happen.

Now, on to today's point. 'They' said if BAC closes below $5 it will mandate massive institutional liquidation immediately. No questions asked, no ability to wait and see what it does the next day. Mandatory immediate liquidation. 'They' said that will collapse the market. BAC traded below $5 before, but closed above. It has just dropped below $5 again.

Here's my point. That which can't happen, won't. BAC may well close below $5, and like those CDS, nothing will happen. The rules say something huge must happen, but not one single fund will liquidate, and not one single consequence will happen. I have no idea how they can get around all their prospectuses, but they will. Nothing will happen, in my opinion.

One tick below so far...

Originally posted by jimkane

Watch that 1198 previous key low. Got a tiger by the tail now...

Get ready for a possible snap up.

And the exact high before this monster drop was... drum roll... 6.50.

I sure am glad no one 'out there' has ever seen me make any in advance posts, because they might buy my books and make me rich.

Originally posted by jimkane

Best case scenario is a bounce to 6.50 and then a roll to a new LOD. But I suspect 'chop in the low end of the range'. I'd love door number 1.

I also wish you all Merry Christmas.