Saturday, June 6, 2009

The chart to go with the story

Monday, I put out a story saying we were heading to 1232 on the S&P, but instead of a chart, I had a picture of "crystal balls."

Take a look at the above chart on the S&P. Now that the S&P has added another 2.28% for the week, don't you think you need to look at the premise for my argument again?

Because, isn't chartists, that what the S&P targets?

On this inverse head and shoulders breakout?


Anonymous said...

i am not a chartist but all i see is the average coming down on it and rejecting the uptrend at around 975. We could have seen the top of this rally at 950. Time to take profits on those UYM options that are going to slowly loose in value...? So sorry you did not make 700% on them...

Palmoni said...

There is a little resistance on the charts here, and up to 975.

I've been saying the next step is 980, a little pullback then, making the bears believe the market is coming down, and then the next move up to 1040.

The odds of retesting the lows are zero.

Anonymous said...

why are the odds of retesting the lows zero?

Anonymous said...

why are the odds of retesting the lows zero?
cause he said so! what other explanation can he possibly have? it is not like it is some math problem that he can solve and prove it to you. You just gotta beleive.
~ another anon

Palmoni said...

Before you retest 666 don't you have to get thru 880 first?

Now tongue in check, I said the laws of thermodynamics won't allow it. Will the mammoth molar magically reattach itself? Will this market magically make the bears whole?

We are in an inflationary universe; we are not going back into contraction. People will want real assets; stocks, and not paper fiat assets that can be printed by Governments.

By reading this blog, you have massively contributed to disorder in the universe, by the release of heat energy--probably ten million million million times the increase of order the information you assimilated. (That's not my example. It's Hawking's)

So to further increase the disorder of the Universe, and decrease the odds of the market going down, as I contribute to the inflationary expansion, let's look intuitively at the components that make up the S&P 500,in the financial arena, and their percentage weighing that these bears still think are worthless.

JPM 1.58
WFC 1.38
BAC 1.17
GS .91
USB .42
PNC .22
STI .10

That's the weighting of the seven largest financials. Wouldn't those bearish love if all of these numbers were cut in half?

Since they make up 5.78% of the index, if they would be cut in half, they would knock the S&P down all of 2.89%.

Even the bear's messiah, David Rosenberg, said that the onus is now on the bears. So ask those that think we are going to retest 666, where are we going to get the points?

You can't.

The odds are zero.

Anonymous said...

if you are so sure SPY does not go below 880 why do not you sell bizillion of SPY 88 puts? Seems like free money...