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It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford


Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin
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The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj


Monday 23 May 2011

Bear scenario in play

A good day for the bears.In my Dow post on Saturday I showed a bullish pitchfork analysis on the daily Dow chart and a bear scenario on the weekly, although my primary focus has been on the bear setup on the Dax,which came into fruition today with a gap down .The Dow took out the pivot low on the daily chart so the weekly chart comes into focus.Failed breakout scenarios are now potentially in play,plus failed breakouts of 2 x the low levels in eg the s&p and Dax  (1333.5 and 7200).The strategy now should be to stay short until the last LH is taken out.The wave count on EWI (Italy) also is bearing fruit with todays big move down.

Also note the sell stop was elected in Mike Breaux's trend-following system,the chart I posted at the weekend


https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEjfjT9R_GLz7l87UQley4renJTd0PiYd8g_xXQsAHgc4CPPSavlh5ac_1qnKYU7QacHIugUhbuw_wgmau3LswY1yMRUUWp4zU7YAK0uPateFIk4VUJ7bnsMQpvgvWVFT9Qrw-lq-udiz5s/s1600/dow.gif

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 https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEho8XuRxBm4yWRzpxIOfkP1NiuXmFulsacYU2rur5jnrAX9_chr7HqH8BG5ff-OkG6JnWSjqEqLKgAW_pj63W-5pn3Md8jsMuqeNsN7nxPGKkpDHrRTv5yMgvJ-TqiTjP6MAviH8QStur8/s1600/dax.gif


https://blogger.googleusercontent.com/img/b/R29vZ2xl/AVvXsEg0Pq7Ze5TK2w898nGou5dnI7qJ22NNrJd6rg40DvZY3NkROag0kjwgVMDCStyfOFTCD9vjeC3BlmYw2UvCipMljPqICoX3ZaxzEsoLBmXX8QPnbGdI6SEGJDzolnDNEVcKXmFbM7aov08/s1600/a1breaux.png

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