tumbling tuesday, page-152

Technically speaking only....definately more to come.

36 Strategies of the Chinese
Strategy 28
Lure Your Enemy Onto the Roof, Then Take Away the Ladder

"With baits and deceptions lure your enemy into treacherous terrain. Then cut off his lines of communication and avenue of escape. To save himself he must fight both your own forces and the elements of nature."

Translation:
Guppy speaks of (failing) stocks in a firm downtrend that display false breakouts and the failure of same. People thinking it is bargain buying time. Same can be applied to the (failing) market in times like this.

He goes on to write of indications that a sell off is in progress when the stock rises against the downtrend and people think it is all over. All the time the longer term traders who falsely pushed the stock up begin dumping into the buying again...so the downtrend continues until mass panic sets in and all and sundry exit at almost any price.

All sound a little familiar?

The DJIA last night fails then rebounds to a ridiculous level considering nothing has changed and all and the news was bad. At the last few minutes it drops ~80pts.....why? The ladder being removed?....maybe maybe not..YET!

The support at almost every level has failed across the indices (XFJ in particular). Each time it rises it is sold into heavily again. Notice the comparison btween the XJO and XFJ (banks), the huge difference in the drop and the little 'ladder' again at the tail on the XFJ displaying indicative 'support'. I believe this is a false break and the XFJ is about to drop like a stone to 2003 levels. The XJO will pulled down in the downdraft (although this has been proven a myth with ships). 1st stop XJO ~5000....then big bounce (ladder) and down again to near 2003 levels right along with the XFJ. No I am not Martis :)