Well finally the market retraces back up to the April highs. As discussed before, the market produced a huge accumulation base starting from May to Sept.
The funnymentalist were all so busy trying to short the market. Some had really exuberant expectations. The crazies were all pointing at the PPTs and the QE2. Give me a, ahem, a break.
The day was really was pretty uneventful. So uneventful in fact that I took a long mid-afternoon nap. Just in time to see the 2pm est pop. A lot of people kept trying to short. There was no significant shorting opportunity. The whole year has been moving that price up on low volume pops and non-committing bears. And yet to them this is market manipulation. Blame Obama. So much effort to cling to inconsistent reasonings by stitching together news from different sources. Are they really that intelligent? Why don’t they just admit they don’t know what they are talking about? The market has retraced all the way up here. These funnymentalist still blame Obama because the market popped and they were short. And claim the economy is in ruin because of Obama. Why? Because they were long and the market sold. Isn’t it an inherent trait that intelligent people look for the truth and are open minded?
This accumulation pop is textbook by definition. Sell off, market moves sideways, build up bullish momentum. This is done in the basing process. Then pop to reclaim the previous support lost and then reverse the trend by closing above the previous high.
Some have said that the strategy I talk about here are not for intraday scalping. Hello! I’m a scalper. Obviously these people invested a lot of time to educate themselves. The accumulation and distribution I discuss is not a strategy. It just describes how the market moves. It is technically consistent across all time frames. It doesn’t care if the market is bullish or bearish. When market is bullish then we play accumulation. When market is bearish then we play distribution? Is there something I am missing?
Where to next?
We gain a different and cleaner perspective from the weekly view. Here we can clearly see how we have reached the April highs. And now for our next target, where we must go to reverse the trend that cause the huge sell off of 2007-2008. Which takes us now to the previous support we lost back in Sept 2008.
The more immediate levels that we are coming to are at 1220.5, 1223-24.75, 1237.75. Just to name a few. And where are these levels coming from? Back in 2004-2005 weekly perspective. A few weeks ago people were claiming we would be at 1250 by last week. Some of these same people were the one’s trying to short today. Go figure.