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Public blog posts only as education and entertainment. private membership market updates reflect my view and analysis of the market. The information contained on this website and from any communication related to the author’s blog and charts is for information purposes only. The chart analysis and the market comments do not hold out as providing any financial, legal, investment, or other advice. In addition, no suggestion or advice is offered regarding the nature, profitability, suitability, sustainability of any particular trading practice or investment strategy. The materials on this website do not constitute offer or advice and you should not rely on the information here to make or refrain from making any decision or take or refrain from taking any action. It is up to the visitors to make their own decisions, or to consult with a registered professional financial advisor. And i absolutely discourage trading options.

Saturday, September 11, 2010

AAII Bullish sentiment rose to 43.9%, the most bullish sentiment since April 15, 2010.

EXTREME IMPORTANT - CRASH SETUP IS A TWO WAY BLADE (commented on below section 2).
during late Aug, i posted some charts of potential QE2, that potential still there as can be told by the QE pattern charts(pending, charts not posted because i favor and cycle setup advantage a potential crash coming). if the crash setup become invalid, it would turn into the other side of strong rally, can call it QE2 or whatever naming convention. because the chart setup still have exactly the same pattern of March 2009 QE1 up, and i have architected a structured roadmap into Q1 2011 with pitch forks matrix, regression cycle matrix, LT & MT iso lines...

i am very alert on this. with my crash system and cycle, i can know which way is coming. On the right side of the market is the name of the game!!! or stay sideline if can not play the game. BECAUSE here is the BIGGEST setup for nearly two years!

it's a contrarian indicator.
if the market could manage to stay at this level by push and pull with a marginal higher diamond formation for most of the next week to satisfy the time cycle, would be a perfect setup for the potential large scale crash.
On Aug 26, AAII bull sentiment was at an extreme low of 20.7%, market stayed at the low level with fractional lower low to buy time of another 3~4 days to satisfy the cycle.
it would be perfect to have a mirror image setup on the other side of extreme for the next week.
that's the architect, design of the market!!!
i am ready for the next "center of action".

1). this weekend, i "discovered" "crash pattern waves", not elliott waves. need to refine the details.

2). VERY IMPORTANT! A crash setup is a two ways blade, it can cut bulls, it can also cut bears. While focusing on the crash pattern waves for crashes, but if failed at the inflection of both the final waves and crash cycle, it almost ensures VERY STRONG RALLY for MT. if this case comes up, first priority to email update people on both the email list and the Followers icon. Same to the crash case. The failed crash setup example, 7/8/2009, 2/5/2010, 7/1/2010, 8/31/2010, all induced very strong MT rally.

either side fumble, imho, would have very serious consequences, because i see it's the BIGGEST setup in about TWO YEARS. At this point, i see higher probability bulls would fumble the ball. i will pay close attention to both the crash setup and the crash cycle. It's a two ways blade, and you want to be on the right side!!!

3). It will only be getting better, as i never stop working on new patterns and ideas. there are a lot of undiscovered patterns out there. imho, elliott waves is just an important pattern waves. there can be many different pattern waves,.

crash pattern waves is one. don't think elliott waves can forsee the Oct 1987 crash because it was during a bull market and certainly not 3 of 3 of 3 down. The newly discovered crash pattern waves can signal the 1987 great crash and the flash crash.

anything is nothing but patterns, that includes both time and price, anyway you like to discover it, upside down, maco, micro, mirror image, the opportunity is tremendous if one has an open mind.

4). looks like people show their like of the blog and/or desire to see the detailed potential crash roadmap (can be both sides), bringing up the sentiment number overnight from 44 to 57. let's see 70.