Monday, July 26, 2010

Wait Just a moment

This coming week will be an important week in the stock market. why
1.  Astro economists are expecting Mars to come together with 3 other planets and cause extreme voltality.  2.  Gann has an important date on July 26th which is 90 degrees or 3months from April 26th top at 1219.8.  3.  SPX and TNA and other ETFs are hitting the middle line of a channel or Andrew's fork.  4.  The true reaction to dumb stress test will become more evident.  5.  1115 is 50% rally point in SPX on the decline from 1220 to  1010.  6.  SPX closed less than 3 points up from round number 1100. 7.  EW analysis is truly divided with one group calling this a 3 to the upside 666 - 1220 as (1) and 1220 to 1010 as (2). and the other group calling a 3 of 3 of 3 of 3 to the down side. 8.  End of the month window dressing is this week 9.  A positive close for the month above 1030 would stop the bear trend from forming 10.  A close above 1131  would be extremely positive.  There could be many more.  Actually this is not as alarming as it sounds every week if I hunt I can find 10 or more reasons.  One thing I know for a fact there will be more than ample oppurtunity to make money.
Starting we have had quite a run that guarantees that there will be a pullback.  and after that may be a big rally or dump.  Not knowing how would I play this? Simple DMRM.  FAZ and FAS is on 3.2% trailing and TZA/TNA is 3.4% trailing.  Patiently wait for the signal and that is what I plan to do.  My guestimate is that the down signal would come and whenever it does I will play that.  It is just a little late to buy and little too early to short. 
I have included couple charts that have helped me.

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