That was an impressive display of selling the fact after the bailout bill passed on Friday. The indices reversed had and slid from 4 to 5%. That put the nail in the coffin of one of the ugliest weeks in a very long time. The chart below (from the WSJ) does a nice job of displaying just how bad of a week this was across the board, except for the U.S. Dollar — the gold bugs must be screaming bloody murder…
T2108 has dropped to levels I’ve never seen since I’ve been trading. I could only find two times when it’s been lower the 6.1% level it closed at on Friday.
I’ve yet to put my IRA money to work b/c I haven’t wanted to chase the gap up opens we’ve had. Perhaps I’ll finally get my chance this week. Besides buying some SPY or QQQQ based on T2108, I’m also searching for some “Turtle Soup Plus One” candidates to buy. (This is all in my long(er) term account, not my day trading account.)
Here are the index charts. There’s really nothing to say about them besides more of what I’ve been saying all last week.
No changes
| Trend | Nasdaq | S&P 500 | Russell 2000 |
|---|---|---|---|
| Long-Term | Down | Down | Down |
| Intermediate | Down | Down | Down |
| Short-term | Down | Down | Down |
(+) Indicates an upward reclassification today
(-) Indicates a downward reclassification today
Lat Indicates a Lateral trend
*** I’m simply using the indices’ relations to their 200, 50 and 10-day moving averages to tell me the long, intermediate and short-term trends, respectively.
Hi Mike,
“Turtle Soup Plus One” looks like a pattern for short-term trades. How do you use it to pick long-term trades?
Thanks,
Nick.
I don’t plan on staying in anything for very long. Those will be relatively short-term swing trades.
Yes, we gold bugs are screaminig bloody murder! We’re scandalized! It is amazing to see the dollar soaring as the one safety trade…but I understand that it’s because our European trading partners are now far worse off than we are…
Oh yeah. And T2107 is at the lowest point in all 21 years of data that I have…