7 thoughts on “808 Points and the Top of the Market

  • 2012/10/12 at 20:40
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    Nice Video David and Thanks for the credit.
    For the sake of our world I hope 565 is not our real target. time will tell.
    Trade Safe everyone and Have a nice weekend.
    attached is a nice view of the spx divided into 101 sections.

  • 2012/10/12 at 21:30
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    Any thoughts on how a move like this would effect precious metals investments? Wondering if due to the effects of all the QE that will come from this if PMs would may move opposite of that kind of move in the market, or with it. 

  • 2012/10/12 at 21:41
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    It would be a 2008 financial crash like sell off. If that was the case Gold was cut in half. 1000 to 675 in a couple months. 

  • 2012/10/13 at 06:23
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    Honestly, it would be a good thing.  We would come out so much stronger because all the weak companies/players would be reorganized/restructured with new owners and managers with a fresh start, provided the govt doesn’t bailout everything in sight again.  Survival of the fittest works in nature and in the economy.  Not a good idea to mess with nature or reward bad behavior.  

  • 2012/10/13 at 08:36
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    Nice find Boaz, thank you for sharing. I asked about the 1090 Gap in Gold a few days back as the broad selloff should affect Gold as it has in the past. Were we to knife down 808 points… 1090 seems quite reasonable. Waiting for Sunday evening with a degree of excitement and remorse, as I fear for what it means for what’s left of our nation. 

    See you all Sunday, again great find and thank you again for sharing, it is downright scary…

  • 2012/10/15 at 07:23
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    Why is an equal measured move such a big shock? It’s just a 1:1 move and part of the natural law, it surely might mean some reactions but that doesn’t necessary equal to a total retrace/sell off to repeat the previous monthly swings. If charts are always so repetive and easy we would all have it easy.

  • 2012/10/17 at 11:32
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    DH and everyone, let’s take a step back for a second and take a deep breath before we call yet another imminent financial collapse and observe a couple things. A very basic post QE announcement pattern if we look at the charts is as follows, (please feel free to go back and look at this on the charts yourself, don’t take my word for it).

    Using the SPX cash index, QE 1 announced Mar 18,2009. SP puts in High at 803.04 on 3/18/2009, then puts in low at 766.20 on 3/20/2009 for a drop of 4.5%.

    QE 2 announced November 4th 2010, SP puts in high at 1227.08 on 11/5/2010, then puts a low in at 1173 on 11/16/2010 for a drop of 4.4%.

    Do the math from QE 3 highs to come up with your support. Now I ask you then, is this current market action unusual in the light of the above information? Pros anticipated QE 3 well in advance, buy the rumor and sell the news right?!

    Next I ask you to look at the last long term trading range from 1966-1982 on both the Dow and SP. Study these charts and then compare them to what we have going on now. If you study it long enough you’ll see the patterns unfold and where we are in the pattern. That’s too much information I care to share for free, but if you put in the work you’ll see for yourself.

    The news and the noise are almost always wrong.

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