Warning: Its going to get rough

M

michaelscott

http://stockcharts.com/h-sc/ui?s=$RUA&p=W&b=5&g=0&id=p65893415456

At around 2:30, all of my charts started to take a big dump violating moving averages and moving across technical parameters. I looked for news in all of my individual stocks. No news that would have set this selloff.

Then checked all the indexes and it appeared that around 2:30 everything started heading down.

Then I turned on CNBC to see if something happened, a world event? Nope.

Then I looked at the above chart. I have not used the weekly chart with bollinger bands before. Notice each time the total market has touched the upper Bollinger Band there was either

1) A correction to the lower Bollinger usually lasting weeks to months.

or

2) A pullback lasting a 1-4 weeks before running higher.

We are now at a point where things might get rough either for a week or more and it might or might not get a little rocky.

Hopefully, this is a temporary event. You might consider buying one of the ultrashort indexes.

I dont expect the rest of this week to be positive.
 
Whats interesting today is the FXI and CAF are rolling over while Shanghei makes a new high last night. Might be time for a China implosion.
 
fxi hasn't floowed china in 4 months. i was short the fxi at 116 when china was 2700. china 40% higher than that and fix 10% lower
 
I'm glad we're selling now

it puts less preasure on the Asian indexes which have been selling off a lot recently

Also it looks like stupid money is selling into the close again

let them

and stupid shorts are entering


nasdaq falling in chunks of .03-.06% every 30-60 seconds
 
I think you should re-read my original post.

Let me be plain. Judging by history, its either:

1) a 10% correction lasting several weeks to months

or

2) a 1-2% pullback lasting 1-4 weeks (or at least until the market can clear away from the top Bollinger)

I tend to believe it wont be a 10% correction, but cant leave out the possibility.

I believe it will be a pullback similiar to the one in October 2006 when the total market reached the top Bollinger Band. It will probably last 1 week.

In any event, if its not a 10% correction, and the market does go higher then its a signal that there will be a correction in the future. June, July, Sept, Oct. Think October 2006.

Its safe to buy GROW at this level, my opinion. My price target is in the 40s.

Quote from stock_trad3r:

I'm glad we're selling now

it puts less preasure on the Asian indexes which have been selling off a lot recently

Also it looks like stupid money is selling into the close again

let them

and stupid shorts are entering


nasdaq falling in chunks of .03-.06% every 30-60 seconds
More...
 
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