Monday, July 26, 2010

Rising Wedge

These wedges are generally bearish, however since it is also a triangle, it could have a continuation of uptrend instead. 

Also noted that Junk Bonds, which have been following equities as a "risk asset" did not follow the market up today.   Supposedly bond traders are a bit smarter than their equity slinging cousins.


  1. Hi, Steve. Man, the march upward is relentless, with hardly a morsel for bears. I agree with you, I'm wondering if this wedge doesn't break up...or maybe, has a short fakeout break down before screaming higher in a third of third wave or some such thing.

    The full moon isn't helping, I'm sure! LOL

  2. I am thinking bears are bored and bulls are lulled into complacency....perfect time to drop the market 4%. I guess Dabama authorized some more money to pump the markets....maybe I am wrong, this time it does not seem to be all at night futures gamesmanship. I am set to short on a .4% pullback, it might go fast. Full yellow moon tonight looked very ominous, of course I won't trade on the ominous part.....


Insightful and Useful Comment!