SPX dumped the neckline of a small H&S topping pattern, spent 4 days below it and then said screw this, time for hope and greed to make a triumphant return. It was right around that point that I began to realize that my projections for the duration of Hope '09 might need to be expanded. Boy, did hope and denial ever expand... right into this latest break.
But it is more complex than simply watching indicators. The gold-silver ratio for example rose strongly in June/July (implying market downside), but broke out of its weekly downtrend line for only one week before falling back. Current weekly GSR has now completed two full weeks of breakout from its most recent downtrend line, has constructed a good looking MACD and formed an inverted H&S bottom pattern.
Yes I know, you have to be a total geekoid get-a-lifer to be into this stuff. Well, if you knew me in real life you would see that I am not very cool and do not display a dynamic personality. But I am into this shit because - call me weird - I just love to make money or at the least, preserve capital and remain as detached from convention as possible. It's the secret recipe of succeeding in the financial markets.
Sorry for the self-involved last paragraph but you must understand, you, the blog reader are all I have got (aside from NFTRH subscribers who actually assign a monetary value to my opinions) when it comes to communicating these things. In real life nobody but nobody wants to hear it. Now that's weird if you ask me. Most people want to make and protect money, but when it comes to the necessary work to do so, it's not happening.
Thus ends another technical analysis post that jumps the track.
