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  • THE MINERS AT A LOW!!

    The history of the stock market reveals how specific patterns come into being, and how it influences subsequent behavior. Pattern sequences of a previous time are reborn and under the right circumstances, can identically repeat. It is simply a reproduction of how investors are behaving collectively at two different points in time. But knowing that a pattern has a particular script it follows can constitute a path that holds (or leads to) a likely outcome!

    Ninety percent of the time all market declines will have two panics. The first is associated with volume and volatility, invoking maximum participation. The second is a byproduct of the first and unfolds in a final'flush out.' It is less dramatic in size and influence- but prices reach new lows.

    Time is also a component and is equally as important. Once a protracted decline sets in, historically there is not a typical short squeeze of five to eight percent in the other direction, but a tremendous upward spike which reverses the trend all together.

    The modern day scenario that is most fitting is of course, the GOLD MINING INDEX. And after an extended three month correction, we can officially say "the rubber band has been stretched!" The technical picture provides enough evidence to define a clear cut two- panic low sequence, but more interestingly, the second panic has a particularly complex nature that morphed into a sideways and seemingly base pattern. This now calls for a violent uptrend underway!

    GDX-Daily Chart (click to enlarge)

    (click to enlarge)

    The CC Report offers two subscriptions- $9.95/month or $100/year. It is well worth the information received.

    www.thecompletecoveragereport.blogspot.com

    Darah

    Tags: GDX
    Dec 29 6:33 AM | Link | Comment!
  • PANIC COMING!

    The TV pundits all contribute their fair share to the conditioning process by clouding thoughts of any market player. To the extent that all ambiguities presented will bait investors to thinking IRRATIONALLY! Like, waiting for a 1000 point rally to emerge once the fiscal cliff is resolved.

    Fortunately, underneath all the headlines a visual and graphical interpretation can be mathematically extracted. It is here, in these very charts, where you will find an answer that illustrates what is really going on, so that us technicians can observe, scrutinize, and formulate a particular bias.

    The information provided does not tell you why, or when, but what!

    In this case,'the what' is a bear market rally. These particular rallies are very sneaky and most convincing, but can be properly identified when using the right tools.

    For starters, a basket of heavily weighted companies, 'THE NIFTY FIFTYs,' which offer the bulk in the performance in the averages -all now have chart patterns that cannot sustain the continuation of this advance. Invariably, when volume remains light during an extended window of time, the result is an inevitable sharp collapse back downward to the previous lows or worse, new lows that can no longer support a bull market.

    The S&P 500 index is a case in point, which is still in rally mode, and perhaps can continue higher if there is further consolidation. But if only mother market is ever so accommodative to our own expectations.

    And it is because of her complexities that make it an impossible arena for perfection. The current rally back is clearly overworking itself to recapture the previous drop in November and rather than guessing where exactly it will end, think of it in terms of direction. The future course of these violent counter trends ultimately end in a scare plunge; and all the pumping in the world cannot uphold the violent cascade of selling pressure that will implode on the masses.

    Consider the technical chart below, which projects a disaster waiting to happen, and with only a small chance of one last leg higher before this rally is all said and done.

    S&P 500- Daily Chart

    (click to enlarge)

    The CC Report offers two subscriptions- $9.95/month or $100/year. It is well worth the information received.

    Darah

    www.thecompletecoveragereport.blogspot.com

    Dec 08 9:36 PM | Link | Comment!
  • OVERSOLD RALLY COMING!

    The ever changing nature of the stock market will often boggle analysts if the current price information displays an unclear message. There has always been, and there will always be a fascination to wrongfully challenge what the future holds, instead of interpreting what's at hand. It's as if what is already known is simply not enough.

    Such aspects should never be the primary tool of one's own decision making. In fact, this is very reminiscent of my encounter with one wise expert on Wall Street. He is a seasoned grizzly who has weathered decades of all different market climates and his ever influencing demeanor once expressed to me, "Don't tell the market... let the market tell us!"

    Many have already come forth with bottom expectations, but none hold any convincing basis for this belief. With regard to the averages, the message across the board is simply no message at all. The only, if any, 'take away' from this most recent emotionally inspired wave of selling has served as an oversold condition. No reversal has transpired to even consider a change of events.

    BUT, the last thirty minutes into Friday's close did reveal a heavy interest of buying for reasons we will soon find out next week. Any follow through of this will result in a swing low, but I must caution those who feel this may in fact be the more important bottom. Let me explain.

    Even in the perverse of markets, rarely do stocks ever go down and then turn back up to form a 'v-bottom.' These particular bottoms are suspect and almost all fail. A true bottom worthy condition must present a subsequent retest of the low or in the very least, find support near the general area to confirm that prices can hold despite all of the bearish news.

    Bottom Line:

    After a second low is presented, odds increase tremendously for an oversold rally into year end. Leading into the second low, Divergences will erect on all fronts and most of the selling pressure should be 'wrung' out. Below is several examples to further underscore this very sequence.

    NDX 100- Daily Chart (click to enlarge)

    In case Friday was not a low of some kind, a bottom will soon be realized in the coming days.

    (click to enlarge)

    The CC Report offers two subscriptions- $9.95/month or $100/year. It is well worth the information received.

    www.thecompletecoveragereport.blogspot.com

    Darah

    Nov 17 10:14 PM | Link | Comment!
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