Friday, January 29, 2010

Guest post on the Chart of Charts 012910

Little Dog has this to say about Chart of Charts:

You know I like the moon, but it is really weird that the eclipse marked this turn down precisely. Also the 5 DMA flipped down right then, and the yellow line for "high levels of stock ready to make some pattern move" also showed us the potential for a turn. AS PREDICTED by your humble dog last week, the 20DMA did flip bearish on Monday,  and then stayed there.

The 5, 10, and 20 DMA are all bearish. That is rare. Betting short on the 20DMA going bearish is "safe" you just have to close the trade-- no matter what-- when the 20 comes back up bullish.

Also, with the number of banks failings increasing, and now they aren't just closing them on Friday's, they did a bunch on Tuesday also! This is bearish.

The consumer is 70% of the economy, and the consumier has been misled and is being crushed. Even if you default on a loan, or EVEN if you do a short sale....they can still come after you and garnish your wages...while you are living in a freakin' tent already!

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Insightful and Useful Comment!