Was committed to VXX last week, and now fully long now with additional purchases. And I like that it was relatively cheap, because of lack of buyer conviction now. Why? Noticed something historical. 2008 and 2011 similarities all through this phase. Note similar, but not exact. Will post this chart close up of now, then wide, then close up of 2011. Here's the sequence that convinced me 2011 will repeat right now.
The Big "V" to the 200 MA, similar but not exact.
Another smaller V and a result, Bull will not give up the fight
Little "U" shaped decline down to 200 MA
Then a double top, tilted down formation
another bull phase 5% down move, AND THEN (with everyone expecting another rise (of course)
the collapse, not as much as 2008, but quicker, shorter days duration, but significant, another 15% and a total of 20%.
However, everything has been similar, but not exact, different set of circumstances but trading is still fear and greed.
Dow Transports lead, and they dipped before the S&P last time hard, dipping now also.
SOX has issues, earnings season is a worried thing, and it is being baked in right now.
Smart traders don't need to see the earnings reports, the "dissapoints" are leaking everywhere.
Alcoa report 4-8, which should confirm all this.
Oil bounce is news related, the Yemen thing, when something else makes new news, it will go to the back page, and the supply demand problem with oil will send it yet lower, only dragging down the S&P more when the oil sector has a minor collapse of their small cap companies
Patterns are not a living thing, they don't think. Patterns are just us looking in the mirror at ourselves, and how we act and what we do. Fear and Greed, human nature in the mirror.
I have friends that say they are all in this bull run, long. I feel for them now. This correction will be labeled healthy and needed.
The Big "V" to the 200 MA, similar but not exact.
Another smaller V and a result, Bull will not give up the fight
Little "U" shaped decline down to 200 MA
Then a double top, tilted down formation
another bull phase 5% down move, AND THEN (with everyone expecting another rise (of course)
the collapse, not as much as 2008, but quicker, shorter days duration, but significant, another 15% and a total of 20%.
However, everything has been similar, but not exact, different set of circumstances but trading is still fear and greed.
Dow Transports lead, and they dipped before the S&P last time hard, dipping now also.
SOX has issues, earnings season is a worried thing, and it is being baked in right now.
Smart traders don't need to see the earnings reports, the "dissapoints" are leaking everywhere.
Alcoa report 4-8, which should confirm all this.
Oil bounce is news related, the Yemen thing, when something else makes new news, it will go to the back page, and the supply demand problem with oil will send it yet lower, only dragging down the S&P more when the oil sector has a minor collapse of their small cap companies
Patterns are not a living thing, they don't think. Patterns are just us looking in the mirror at ourselves, and how we act and what we do. Fear and Greed, human nature in the mirror.
I have friends that say they are all in this bull run, long. I feel for them now. This correction will be labeled healthy and needed.
