Chelsea Oil and Gas Ltd. (fka COGLF)

[Belek]

The market will continue to suck the bulls back into the bullish mode

QE infinity, but my guru stressing the real facts;;

There are several internal measures that support a top over the next few days. One of the keys is a growing and significant Bearish Divergence between the S&P 500 and our 10 day average Advance/Decline Line Indicator shown in the chart on page 24. This divergence is warning us that a top is approaching that will lead to a strong decline. This is telling us that as prices have been rising, the re are fewer and fewer stocks participating in the rally, which is Bearish. All-day breakfast at McDonalds was largely responsible for Thursday's rally, the stock rising over 8 percent. New NYSE 50 Week Lows rose on the rally. There also was a Bearish divergence appearing between the DJIA percent of stocks above their 14 day average and prices from October 12th through October 22nd.

how can you ignore what the real internals are saying.

For those who doubt the Bear market case, and believe that stocks are headed to new all-time highs before they return to the August 2015 lows, I again want to show the chart on page 23 that suggests otherwise. The initial rally leg off those August 24th lows was a three subwave move, not five. Impulsive waves in the direction of one larger degree trend (in this case the rally from 2009) must have five subwaves, not three. Only corrective moves have three subwaves. The one exception is wedge patterns (this initial bounce was not a wedge) can have three subwaves, but they are termination waves, so we get the same result: a reversal that is strong is coming.

the real story

Thursday's rise was almost entirely short-covering, which means ironically that those most pessimistic about the market accounted for the bulk of the buying and price rise.

so maybe we get a consolidation here until the FED announcement on NIRP
gaps galore to trap em good,good luck