Wednesday, February 8, 2012

Don Henly-> "DIRTY LAUNDRY" -> ....."give me some news I can use...."

ok ya'll asked for it.  News.  For all practical purposes the market has declared ad De Facto Default in Greece.
Was it in Sept or Oct ? Don't matter much BECAUSE, it wasn't MF Global that crashed the market during September when all the big money left the market for places to hide, as it did.

What we have here, is NOT " A failure to communicate", so much as a schizo market that is going crazy due to the conflicting data, and cyclical influences and the waning of a very powerful lunar cycle.

WHOOPS, the Pink line [the rolling 5 day total of Hi's minus Lo's], just stumbled yesterday, after Ben Bernacke bumped his head on the debt ceiling and let on that the employment figures were a result of "cooking the books" through a backwards looking "Seasonal Adjustment", dropping people from the unemployment rolls because they were so discouraged they stopped looking for work.  Apparently they are no longer "unemployed", they simply dont have jobs.

WHOOPS were you feeling crazy ? Your not, the market is simply reacting to the Schizophrenia out there.

SCHIZOPHRENIC ? Yes look at the bottom panel of the chart above.   The accelorometer of the UP VOLUME On the NASDAQ is dropping as fast as it can.  Last time that happened it was before the decline in Nov as noted by the Wilshire 5000 chart panel underneath it.  Now with the conflicting influences of an UP cycle and a Down cycle overlapping, the market is working to adapt both movements into its mix, as you can see by the very volatile movements of the NASDAQ UpVolume over-extension first to the Upside (green blocking, blue circle) then to the Downside ( brown blocking, red circle), in such a short time btwn 3 Feb and 8 Feb, again, indicative of another kind of internal volatility in the "Markets Mind".

How is this "News you can Use" ?  Given my most recent Signal Alert, we know to set our orders in different places for different assets.  More or less like some of the Snare-Line tricks some of my Athabascan friends showed me over the years........

Seems this market is unable to hurdle the old highs by any meaningful margin, since "adjusted" by any number of measures, it is way lower than it was in May of 2012.  We see lots of individual stocks getting whacked and it leads me to wonder if the "correction" at hand is simply taking stocks out, one by one and slaughtering them before the market can get on with its rally.

Basically Greece's default is "afait accompli", and we have been in a Bull Market from that point forward ( last fall, IMO), and now we are in the throes of a correction, where upon, some money will come out of hiding when the correction is over.
Anything the market is doing now, is discounting events that most of us are blissfully  unaware of, as yet.
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Good Luck.