Zignals

The Obama Bottom

> This article has a lot in common with other renowned fields - phrenology,
> astrology, cheiromancy and tasseography.

Technicals are a tool. Fundamentals are a tool.

Technical Analysis is about measuring probability; the probability of buyers ('support') or sellers ('resistance') taking control of the market. What I have attempted to illustrate is how fearful the market have become by overselling relative to key moving averages and how this provides an opportunity.

If I am reading correctly from your previous comments you have been dipping in to the market since last August because you perceived value in the market. Since the top in October 2007 the market struggled to regain its 200-day MA in November 2007 and May 2008. In August 2008 it struggled to break through its 50-day MA. Now its struggling to get past its 20-day MA. Just as these moving averages acted as support through the cyclical bull market from 2002-2007 now they are acting as resistance. But when the 20-day MA is acting as resistance you need to consider this state won't last long and markets will soon be pushing through (and higher)?

Fundamentals doesn't deliver in this respect. How can anyone believe in pure fundamentals after the events of the past year?

The time Uranus went all retrograde was in the balance sheets and earnings of AIG, Bear, Lehmans et al (not to forget Enron and Worldcom).