Well it looks like the world has been saved again, another two to three day rally.
FEAR & HOPE
When I typed into google - 'wierdo equity traders' back in 2008 and discovered the xjo forum on Hot Copper. I couldn't quite understand everyone's bearish - and what I thought at the time - overly careful trading.
I had been flat out for years, made some money paid a lot of tax. I had a little equity that I could build for retirement so in I waded - right at the bottom. Buy and hold.
Now I realise why all that precaution. The vets here had just survived a that big ugly '08 dive.
As Redbacka would say I think we have to trade what we see in front of us.
Ignore the European hoo hah for a minute. What do we see?
I see, lower highs and lower lows. A big bear flag which has broken down and retested the under side with another thousand downside potential on the DOW. It is picture book perfect, which is probably why we are sceptical. But if this amateur ponyclub member here can see it, so can all the other ponyclub members around the world.
Speaking of which, here are a few of the braided brigade.
XJO PEARLS
'I have noticed over the last 2 months that there have been several near-end-of-day massive spike rallies that are seemingly short lived when the next day or two pans out.' Bollingerbob
'Bob, its follow the herd.. ..this market is like lemmings - they just havent found the cliff to run off yet'.ADRUNIS84
'...after such a sharp rise we should see a correction short term. But it is how the correction behaves that is going to be really important. To me last night was impressive because it sort of follows a pattern for situations like this so I will certainly be watching closely over coming days.'PADDINGTON BEAR
'What a classic. Someone tripped over an extension cord during the last hour at the Dow fantasy factory. This market ain't buying it'. VLADTHEIMPALER (thats a name!
'If last night was a high then look out below. Earliest date then would be Oct 10ish.' VOLTAIRE
'This is a bear market. Bear markets are FULL of bear market rallies. It's a characteristic of these beasts - as above. They're used to scare good people into buying :)'DOCKARL
'Frankly, imo, ime, when we move from "this is the bargain of a lifetime" in a chat room to "this is the best price/opportunity to get out" then, maybe, we'll see the xjo trudge a new incline.......again, that may require a move to below the 09 level to get a psyche shift.' JOULESMM1
Which brings us to our Star ponyclub member of the day.
Some say that he meditates whilst listening to Bach and that he was once a bongo drummer with Donovan. All we know is that he's called...
* * * FLETAP * * *
Fleta doesn't say much - except with his wonderful charts. His link to the capitulation chart was a first see for me
Fleta also has encountered the phantom thumb downer. Now some of the more 'self fulfilled' XJO'ers profess to not caring about them. But some members, like me, dealing with trading inferiority complexes, quite like a pat on the back if deserved.
Fleta is one of the 'charts guys'. It's a lot of stuffing around, getting them readable, making them tell the story on their own. When you have a meany 'Thumb squasher' taking what maybe your only thumb for the day, what then is the point in sharing the wisdom.
Why all this 'Pony Club' stuff?
(Charts for)'Volt and Imac etc (and not the pony club members)'FLETAP.
See! Fleta thinks us Pony club members have been thumb stealing. I KNOW who it is Fleta and it's not us posters. We love your charts - hugs from all of the 'Braidy bunch'.
Remember Braidys. Trendsetters of the day get TU's no matter what rubbish they post:)
Be careful out there fellas and dolls.
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PS. DG & CAYLUS - huge effort from you both - joining your fan clubs.
(20min delay)