Tuesday, June 29, 2010

Time For Another Right Shoulder?

I know, Shanky, we just broke the neckline and the largest H&S is about to drop a load. OK, OK I get it, BUT hear me out. This one is worth 100 SPX points and a free trip to Vegas! No, I do not expect it to be a big RS if it even happens. Given the busted lower BB on the daily chart, the position of the 30m indicators and the severe drop today it could possibly be the set up we need for more cliff diving and to allow that larger H&S to play out. The minis appear to have developed a nice diagonal support line as well that price reversed off of later today. 
The 30m may agree that it is RS time, but then again it appears the market knows where it wants to go. If that was 1 of 3 then this set up is working for a lay up 100 point SPX fall a 3rd grader should be able to call. That is of course it doesn't just drops it's load right here.

 I gotta tell you I am feeling a bit brighter this AM as I was fortunate enough to have had dinner last night with none other than Karl Denninger. Yup, you heard that right, I called up the man and he accepted. Yes the restaurant survived the two of us in one place. I learned a lot from a man who I may refer to, in a kind way, as scary smart. He shared several thoughts on several subjects we both care a lot about, and I simply listened intently to what he had to say. Karl was even better in person than on his blog. He was funny, kind, insightful and most of all easy to understand. His delivery is excellent. If you do not frequent The Market Ticker, you should. Thanks Karl for going to dinner and it was a pleasure to get to meet you.

GL out there. I'm gonna work on the GoM post tomorrow. Not sure when I will get it out but soon. My feet finally stopped burning. I guess the dispersant finally worked it's way into my blood stream.