C&S Weekend Update

C&S Weekend Update
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This week reminded me of the time we bounced off the March 666 bottom. While many of you got smart and gradually started getting back in the market...

I was the the big bear pounding my fist on the table in disbelief, telling myself we are due for a pullback! Meanwhile I'm manipulating the charts to fit my beliefs. Yes I was the guy reading the "doom & gloom" blogs, & reading about the horrible economy thinking "Bad economy = Bad Market."

Truth of the matter is none of what I think, the charts think, or the CNBC clowns think matters because "Price Pays." I'm not telling you to get into the market, but if you're a HUGE bear, chances are you will be the last to climb aboard this train and when you do it will be called "buying at the top." I should know, I've done it more than once...


As far as the technicals go, these charts aren't doing what I think they should do, so for the most part I'm only watching price. The Big 3 gave us an increase in volume this week. Today the Transports broke and closed above the previous shelve of resistance.




The NASDAQ was the first to give us a substantial breakout ahead of the pack. Is it due for a pullback? I think it is, but like I said, I'm just watching price and today prices pushed and closed higher.




For the S&P 500 I've drawn in a rising Price Channel I'll be watching.



Here is a look at the Slow Stochastic American Market Quilt. Check out these readings, all of them are pegging the high 99s except for the inverse VIX closing at .26 I admit that when I created this quilt I wasn't expecting to see so much green across the broad American Markets. Large, Mid, Small, & even the Micros are hitting on all 8 cylinders.




On the monthly price performance charts, the S&P 600 small caps are leading the way with the S&P 400 mid caps just behind. I was expecting the S&P 100 large caps to overtake the others this week, but it didn't happen.



Thanks for reading, I'll do another update for the Bonds & Overseas Markets later this weekend.

 

[Birchtree]

A new man of truth - I like that. Old habits are always hard to break and it's going to be a long year my friend. You're in a great position right now but will you have the faith to keep it when Boo shows up to discourage us - time in the markets can often be more rewarding than timing the markets. Anyway, always appreciate your analysis even if you don't agree with my strategies. But making money any way we can is the name of the game - and sometimes a little pain is rewarding.

 

[JTH]

Thanks, BT my Adxial-Drifter-Long system has its own pair of sticky pants and it will let me know when it's time to change my underwear.

Till then, any bearish comments I make on the markets are just that. The fact is I'm fully invested and fully prepared to accept the consequences of making money....