Not So Fast!
Seeking Alpha Analyst Since 2008
CNBC is force feeding it's viewers with the Gov't Shutdown Scenario. No choice, once they enforce their agenda, traders will have to follow.
The Ascending Triangle of yesterday is now morphing into a bigger Triangle that may become a contracting ascending triangle or an expanding triangle:
This type of triangle can keep going on and on. The benefit of such pattern is that it usually extends the longevity of a rally without going for a deep pullback. The drawback is that if an ascending contracting triangle forms, the triangle itself has highest probability of being a Terminal Triangle.
An Expanding Ascending Triangle is the anti-thesis of the Terminal Triangle. The former is my favorite running type of correction with higher highs and higher lows that helps extend a rally.
IF an Expanding Triangle forms (higher highs, lower lows), then I don't know what it actually does since it is a rarity and I only have one experience trading an Expanding Triangle big enough to cause ripples to the general makeup of the markets.
Wait and Watch until those crappy politicians find their way.
It is not surprising that the 'Financial Crisis of the Century' of 2008-2009 is now being felt in Washington with such ferocity that may result in the 'Fiscal Crisis of the Century' as the government coffers run dry when Corporate America remits far less taxes than what it used to be.
This is the tip of the iceberg. Next week will be the dept ceiling with far graver consequences if the government defaults. With politicians posturing for the 2012 election; who knows what might happen next?
Who knows, the next Great Recession Part II might just be the 'super-tsunami' effect if the US government goes into it's own 'Crisis of the Century'.
Addendum: Wed: 2:40pm
Dow Jones and SnP500 look like spagheti at first glance but Compq is (still) a good looking A-B-C:
Compq is a Flat on the 15min chart with an expanded B-wave and a strong C-wave. The C-wave failed to break below the A-wave thus the whole pattern is not an Expanded Flat as some would like to call it. Ascending Flat, perhaps, is a better terminology for this particular pattern if it finally results in a rally.
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