After looking at Daneric and Kenny's stuff, I started looking for the bottom. In my post below from 3/10 Why am I perplexed I noted some strange things that may have proven to be more right than wrong. I was perplexed because of being blinded by bearishness when the charts might might have been telling me to be bullish. I built this chart and then added the wedge and count. It is quite possible that the E touch is in on the falling wedge. I have not given up on my What's Happening post wedge from below. So many points to consider. In my search for the wedge I have two counts now. One will be right, just will have to let the market tell me. Fortunately we have the ability to play it either way! The whipsaw on the weekly MACD indicator had me confused as well. Well, maybe the bottom is in and that was a signal. At least now my keys for breakout and bottom marking can be better defined. We still have a long way to go to get out of this mess globally and the bullishness of this run may be just another head fake. If wave 4.5 violates the blue dashed top channel line, I'll most likely assume the bottom is in. I'll point his out now and here - REMEMBER THE BACK TEST if it does break. That may set the ultimate bottom on some type of capitulation move. The charts will tell us. Like Craig says, trust the charts and keep emotions out of it. Have a good weekend.
Saturday, March 14, 2009
Looking for the bottom
After looking at Daneric and Kenny's stuff, I started looking for the bottom. In my post below from 3/10 Why am I perplexed I noted some strange things that may have proven to be more right than wrong. I was perplexed because of being blinded by bearishness when the charts might might have been telling me to be bullish. I built this chart and then added the wedge and count. It is quite possible that the E touch is in on the falling wedge. I have not given up on my What's Happening post wedge from below. So many points to consider. In my search for the wedge I have two counts now. One will be right, just will have to let the market tell me. Fortunately we have the ability to play it either way! The whipsaw on the weekly MACD indicator had me confused as well. Well, maybe the bottom is in and that was a signal. At least now my keys for breakout and bottom marking can be better defined. We still have a long way to go to get out of this mess globally and the bullishness of this run may be just another head fake. If wave 4.5 violates the blue dashed top channel line, I'll most likely assume the bottom is in. I'll point his out now and here - REMEMBER THE BACK TEST if it does break. That may set the ultimate bottom on some type of capitulation move. The charts will tell us. Like Craig says, trust the charts and keep emotions out of it. Have a good weekend.
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