Freaky Fib Of The Week

There is nothing wrong with your television set. Do not attempt to adjust the picture. We are controlling transmission. If we wish to make it louder, we will bring up the volume. If we wish to make it softer, we will tune it to a whisper. We will control the horizontal. We will control the vertical. We can roll the image, make it flutter. We can change the focus to a soft blur or sharpen it to crystal clarity. For the next (trading ) hour, sit quietly and we will control all that you see and hear. We repeat, there is nothing wrong with your television set. You are about to participate in a great adventure. You are about to experience the awe and mystery which reaches from the inner mind to... The Outer Limits. — Opening narration – The Control Voice – 1960s

Spielchekr, Very interesting chart. What are the possible scenarios when this sort of thing happens? When the 50 /200 did a death cross in December, the market was heading down and that cross resulted in an even greater fall. This time the short term trend is up. What would such a cross indicate when the short term trend is moving up. Would it imply a greater rise if it can move above the cross point? Or,would it imply and en to the short term uptrend and a turn down with a significant resumption of the down trend? Thanks for the post. I always look forward to seeing your work. UBW

Replying to Freaky Fib Of The Week

DUH


ps: nice chart, more later

The 50/200 death cross didn't mean much to me, but the "20/50/200 sweep" did . As for this particular confluence of moving averages, there are two other points that come close... roughly, weeks ending 12/7/1990 and 2/02/2001. I've been comparing current price and indicator action with these points for some time now, and I recommend doing some research of your own. These two points had completely different intermediate-to-long outcomes at this pivot range, although BOTH did result in lower prices below the current relative price level within a month. What I find intriguing is how these moving averages have converged almost perfectly, sort of an equivalent to a doji stick in a sense (indecision) when compared to 1990 and 2001, or a perfect neutralization in another sense. Therefore, my take at this point is... indecision. I'm going to keep a very open mind, and in fact price might just meander sideways for quite some time from this level in a trader's market, with buy-and-hold folks getting very frustrated. Kind of like MSS's "playpen" thing (but defined between the 15 and 55 ema that I've extrapolated). This extrapolation might be worth watching, IMHO. BTW, this is typical of the way I often approach TA, defining from the epicenters (or points of reversion) rather than from the extreme boundaries. I think it adds another dimension for perusal. FWIW.

1990:


2001:

really nice. also this: MARS was opposed to SATURN yesterday. a valid astro component is always helpful. there is the possibility of real ugliness among us mortals after this one. i am looking for a nasty surprise. and: as to the correction, it looks a lot like we are "putting in ceiling tiles".

CORRECTION:

"Kind of like MSS's "playpen" thing (but defined between the 15 and 55 ema that I've extrapolated).

SHOULD READ:

Kind of like MSS's "playpen" thing (but defined between the 13 and 55 simple ma that I've extrapolated).

Pardon me.

Humble1: one thing I know for sure (as do many others here) is that once a compression resolves itself, we get a violent move. And this is a black hole's worth of compression. Once we exit the playpen, I do expect ultra-violence.


MSS: bring it on, dude.

Edited by spielchekr, 26 April 2008 - 10:01 AM.

Spiel-I guess some may get "a little bit of the in and out"? Great reference, I often wonder where the quality of film went since I was younger.

Does David Bowie show up in your dreams?

I saw Bowie once during his "Ziggy" days. Man...could Mick Ronson play guitar or what? U.F.O.