I sold out of everything early this week and was waiting for the big crash, but now I'm thinking it's not gonna happen for a little while yet. It's almost time to get back in. Luckily for me, most of my stocks are lower than where I sold so it worked out better than planned.
Here's an interesting Fib retracement chart that could be the road map to what's gonna happen.
Seems to me that after a couple of rounds of money printing, 10,600 is the new 'Ground Zero'. So what normally happens after we touch 'Ground Zero' a few times? Well, it's not uncommon for a 'Saddam (The Mother of All) Hussein' style bounce to Fib 76.4% or 88.2%, isn't it?
Usually you load up between 0 - 23.6%, not leaving any stone unturned.
Then you head for 38.2%. Once you take that, you do an about face to confuse everyone, and you go back to re-test 23.6%.
Once that's done, back to 38.2% we go. Then we realise we have a testicle with a penis, so we go back to finish off the 2nd testicle, whilst also backtesting 38.2%.
No stopping at 50%. After tormenting the poor buggers, now we gotta let them know it's a bull run.
Up to 61.8% now. Bounce off once. Down to 50%? Nope. There's our mate, Mr 20EMA. Bounce off him and back to 61.8%. We take that easily, but do we continue?
Nope. Too many think we've run too hard so they're coughing up their shares. We stick around the 61.8% Fib, grabbing heaps. Then we rise a little, we act like we're gonna dive bomb back to 10,600, but then bounce off the Fib line and good old Mr 20EMA who's caught up. Then head up to 76.4%.
But what about that old horizontal resistance line from post GFC highs? Easy peasy. Wash 'n' repeat. Look at the next chart.
Once again, set up a 'Ground Zero'. Accumulate between that and Fib 23.6%. Head for 38.2%. Touch, about face, and go back to re-test 23.6%. Then back to 38.2% (drawing genitals this time around is optional). You know the rest.
The trick is to line up this new Fib 50% with the old horizontal resistance line. Two birds with one stone.
Once passed that, ring mates at 'News of the World' so they can tell the 'Moms & Pops' all is rosy. Once they join the party, up we go to 100% Fib (88.2% on the big Fib).
Once there, we do a 'Johnny Holmes' style dump, and let it head back to 10,600, catching it at 11,000 or 11,400. We can get there quicker if our mates at 'News of the World' can concoct a nice, scary, 'Stephen King' style story.
(20min delay)