bull market has resumed

Quote from cnms2:

Are you using technical analysis too (sorry, I jumped into this discussion before reading more of your thread and blog)? If you do, what do you think about the bearish divergences seen on the SPX weekly and monthly charts, i.e. MACD Histograms?
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Normally that would bother me. But I see the A/D line climbing throughout in the NYSE. If you look at 1991 - 1994 you'll notice the same divergences. This was a time when a third wave was subdividing with a series of 1-2, 1-2, 1-2's ... we call it consolidating near the highs.
 
Quote from cnms2:

Actually I'd say that I haven't seen (yet ?) the fear and panic that mark the bottoms.
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The April - August advance was the weakest of the lot. We didn't get too overbought (intermediate term), so we may not see the fear factor this time. However, we did slam down pretty hard in the middle of the month.
 
Quote from gharghur2:

Normally that would bother me. But I see the A/D line climbing throughout in the NYSE. If you look at 1991 - 1994 you'll notice the same divergences. This was a time when a third wave was subdividing with a series of 1-2, 1-2, 1-2's ... we call it consolidating near the highs.
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Elder wrote about The Hound of the Baskervilles that happens when a divergence is not confirmed, and it is followed by an opposite violent move. Maybe this will be the case this year... We need just a little patience.
 
Quote from cnms2:

Great charts!
What's your opinion about the attached?
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You are referring to this activity (chart)?

I feel the continued advance of the A/D line and the subdivision of the V wave negates the bearish divergences. Similar to 1991 - 1994
 

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Quote from cnms2:

Elder wrote about The Hound of the Baskervilles that happens when a divergence is not confirmed, and it is followed by an opposite violent move. Maybe this will be the case this year... We need just a little patience.
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Agree! The SPX has been pretty violent lately. It feels like the bears are disappointed that they couldn't break this market. Every up opening sold off...every sell off reversed on panic short covering...there's lots of shorts and cash out there.
 
Quote from gharghur2:

Agree! The SPX has been pretty violent lately. It feels like the bears are disappointed that they couldn't break this market. Every up opening sold off...every sell off reversed on panic short covering...there's lots of shorts and cash out there.
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We have to enter based on our analysis, but keep our stops shorter (like in "keep your friends close, but your ...").
 
Quote from cnms2:

We have to enter based on our analysis, but keep our stops shorter (like in "keep your friends close, but your ...").
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catching bottoms is always risky.
but when it's a bull market the risk is always limited :)
 
Quote from gharghur2:

catching bottoms is always risky.
but when it's a bull market the risk is always limited :)
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I place my bearish SPX stop at 1230 (~2 * 3 day ATR). Where would you place yours (bullish)?
 
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