False Markets

I only have a few things to say: the up and down swings of the market over the past few days is an illusion. The prices are not completely true as short sellers have been eliminated from the equation (in the most important area). Do we trade in a free market system? I guess not. Until the short sellers return, the rest is baloney! I wonder if that 777 point drop would have been closer to 1,500 if short sellers were in the market.

Be careful when they do return (as restrictions are lifted).

Keep this in mind: the 777 point drop may have been the largest one day point drop but it was only #17 for total percentage points at 9%. The largest drop ever was 22%.

I am still long the dollar (and believe it or not, shares in Visa). What a mess!

We may have false markets but charts don’t lie!

8/24/08, $76.81: US Dollar Buy Signal

12/17/07, $77.43: US Dollar Snapshot

Comments

  1. Chris,

    I’ve said it before and I will say it again, Keep on telling it like it is. “The charts don’t lie”. Words to live by (as I am still learning). I too am long the dollar.

    Darin

  2. your blog is really nice. I believe that this trading environment is rigged. every time the Fed, Paulie, the cronies in the house and the senate open their mouths they an effect in the markets that is unpredictable. No matter how much fundamental and technical analysis an investor makes it does not matter.

  3. “I believe that this trading environment is rigged. every time the Fed, Paulie, the cronies in the house and the senate open their mouths they an effect in the markets that is unpredictable. No matter how much fundamental and technical analysis an investor makes it does not matter.”

    This is true, but if you know who is doing the rigging you can find the winner. In this case it is JPMorgan. They own the Fed and the government. The market is rigged in their favor so they will shut down small banks, buy their assets at pennies on the dollar and make billions of dollars in the process. They have been doing this for over a hundred years now.

    Read Jesse Livermore’s recount of the banking panic of 1907 and you’ll see a situation that almost exactly matches what is going on today. I wrote a post on my blog sigmaseek.blogspot.com about it.

  4. Hey Chris, or anyone who might have this information:

    was wondering if anyone could post their NH-NL ratios by any chance? i stopped trading for a while and now i’m missing the NH-NL ratio numbers after the week of 6/14/07

    was wondering if anyone would be kind enough to show me theirs so i can update my spreadsheet.

  5. Steven Mac says:

    Chris,

    Are we setting up for another short term bounce on the 50Rs?

  6. Hey Chris…hope you are hanging in there like the rest of us. I don’t know which is more blood curdling…this market or watching one of the Friday the 13th’s movies??. Surely this too shall pass, Janet

  7. hey Chris:

    Are you not blogging regularly anymore? Just a few posts in the last few weeks.

    Your strategy and imput was always appreciated!!

Trackbacks

  1. […] Countless people wrote to me asking “why” I was still holding the stock after I mentioned it in False Markets in October, even though it had violated the 50-d moving average and was trending down. I didn’t have a […]

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