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Sunday, May 9, 2010

Yes 100% Utah is possible sometimes


These are still very violent days in the market.  Violence in the markets is opportunity to make some serious money.  FAS had 3 big moves decline 3.70 from 29.58 to 25.88 rally to 28.75 for $2.87 and decline to 26.77 for $2.10.  That are large ranges for intra day moves.  I find it better to trade on these days than to stay frozen.  After the big real imaginary data day it was all real on Friday.  DMRM works like a charm for on these days.  On left is SPX daily with traditional Gann.  Lot of times everything comes out letter perfect on Gann be it a bottom or a top.  In SPX's decline when I look at 2x3, 1x3, and 1x4 I am quite blown away at the exactness of this science.. Touching the 1x4 represents a 75% decline of the rally from 1044.5 This is an excellent spot to stop and turn to the upside. 
 I have a TNA chart with several envelopes with DOMA 77.  I was trying to find how far down do I have to go to get a kiss  on the hit (now reclassified as a computer glitch).  It was a mind boggling 25%  I have drawn three channels at 9, 17 and 25.  I will be watching these to see when TNA enters back in these channels.  The expectation would be for TNA to get rejected by each of these envelope line and then TNA goes back up piercing thru them to be met by the next. and repeat the same process.  The bear blogs  are almost unanimous in calling for this pull back to become full blown bear market leg some have SPX going to 300 or lower. I have myopia can't see that that far.  If it happens I will deal with it when the time comes.  I find it rather unfulfilling to pick a bottom or a top when there is so much money in between.  I did do study comparing TNA and FAS.  Since TNA represents larger index DMRM does better with a narrower index FAS.  We are due for a rally.  Mondays are very good days to start a rally.  I am very wanting to go long ASAP.

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