Replies to post #1121 on S2 Option Trader

[pHiLtHy]

ya know, this is what i've been sayin' and thinkin' for quite awhile now... the only thing i've been doing during this rally has been daytrading the ES... especially after the flash crash...

fortunately my signals tripped to sell a day or so before the flash and i've been in mostly cash for my IRA's ever since.

[MRVLReader]

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http://blog.capitalmarketvision.com

March 3--Strong rally in front of payroll report leaves both sides guessing about Friday morning
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SPX 1987 and 2011

So while there is some upside potential, which the bears clearly need to respect (as if I need to remind you of that),the next chart below is one that only a bear could love. Jeff Cooper, who writes a subscription service on Minyanville, often writes about Gann cycles and other cyclical studies and has pointed out recently many similarities between the lead-up to the 1987 crash and where we are today. When I look at the price pattern between then and now I can certainly see a fractal pattern playing out as we get another leg up for the bounce off last week's low. Following the August 1987 high there was a sharp drop and then a 3-wave bounce back up from the uptrend line from January 1987. The break of that uptrend line is what led to the crash. Anyone paying attention to that trend line could have saved themselves a lot of trouble (and money).
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