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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.

Friday, September 10, 2010

after the topping process, potential either a large scale crash or a Japanese or GD style staircase down.

i think if turn off computer for one week, and be back on 15th or 16th, you won't miss anything. the best part is in the coming center action. i happened to be lucky enough to benefit from the majority part of the previous center action of both down and up. the remaining topping process really is a vacation time for both bulls and bears. i was on vacation during the Aug topping process, came back just in time for the top. maybe now it's your time to have vacation? bears claim victory on the previous plunge part, bulls claim victory on this rally part. are you bulls or bears, or neither.
i already kind of analyze, calculate, or guess what would be the next center action of both down and up. would be nice if can benefit both again.

and i believe current topping formation is in the form of expanding, not contracting because of the timeline issue, and it's the setup for either a large scale crash (2X more than the May 6 flash crash, multiple days event due to circuit breaker), or an extreme weakness into GDII or Japanese staircase style years or decades stay down big L case. A large scale crash like 1987 would recover eventually(2 years)and better for bulls and FED, but a GDII style won't and bad for everybody. only solution to GDII type is ... (what do you think?)
it's all about strategy and longer term view. don't just see the trees, see the big picture of the forest.
if you like t/a, don't just be a technician, also be a strategist. if you like fundamentals, better to know as much technicals as well.

1). Thunder, i don't like either yesterday or today be the top, not favor to a potential crash schedule.

2). why focus on expanding crash circuit breaker if none is in sight while market has rallied strongly since Sep 1 near non-stop?
Friday, September 10, 2010 - 14:55
SEC: OKs Expanding Stock-by-Stock Circuit Breakers