Strategy Central

[CaribbeanJim]

Zela - You only need to look at the tightening of the Weekly Bollinger Bands to know that a big move is in progress. If it is not going to go up (which it had 5 months to do!), it is going to go down. Just look what happened exactly 4 years prior to our highest point this year... strong down until mid-October. Now look at what has transpired over the past two weeks (e.g. 6 days below our Bollingerband which hasn't happened in 20 years, Germany's massive weekly parabolic breaking down)... see some resemblance to 4 years ago today? I do. Look at the massive amount of small speculators all lined up on the long side. Last time the small specs were all extremely long, the market tanked. Look at the numerous Joe Blows who were throwing money at metals and international markets end of last year and early this year. Didn't it feel like it was the end of 1999 "millinium party"? The international markets have a hangover and you can tell it because the sell volume hasn't even barely budged yet and the VIX is just starting to rise.

Look at the following two charts. Doesn't it look like the PERFECT time to be short? I don't see how anyone can be "too bearish" when we are perfectly lined up what's happening seasonally, cycle-wise, and globally.




Charts courtesy of Dan Basch