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Mania or Very liquid markets?


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#1 eminimee

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Posted 21 January 2007 - 11:57 AM

This chart was posted on another board .....my response.....Would like to hear opinions on mania vs anything else.

http://www.cross-cur...net/monthly.htm



One person's view of mania could be someone else's view of liquidity...
What I do follow is this however and it's saying things are frothy and speculation is peaking....time for a 7or 8% breather.
SPX is inverted to line up with inverted fund.
I hope chart is self explanatory.
http://stockcharts.c...8588&r=7741.png

#2 borland

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Posted 21 January 2007 - 12:18 PM

On the crosscurrent chart of penny stock volume.... The jump in volume 05-06 looks more like 97-98 on a percentage basis, so doesn't look like a potential hair cut to me. The falling wedge can have two outcomes, either a break down or a break out above. Both can be bullish longer term. We've seen both in the last few years, as the markets move higher, or in the inverse funds, a move lower.

Edited by borland, 21 January 2007 - 12:20 PM.