Here is a humorous chart from a nice E-Wave site called Pretzel Logic’s Charts and Analysis.
Nasdaq 100 Index
The above chart is from SPX 1000 Here We Come (Right Back Where We Started From) in which Pretzel writes …
The NDX just completed a major top formation. On Thursday, the support level of this top was broken, and on Friday, the NDX spent all day unable to rally back above it. The chart also has some helpful hints on how to “get rich quick” in a bear market — assuming you have enough capital to move the market, that is.
Those of you who are into technical analysis in general, and E-Wave in particular, may wish to check out Pretzel. He has many e-wave charts in the above link and lays out the technical case for a big downdraft quite nicely, complete with an alternate bullish possibility.
Three Easy Steps to Getting Rich Quick
Those of you not into technical analysis but with a proven ability to move the markets, please note these three “easy” steps toward guaranteed profits.
- Step 1: Generate quick run up off the lows, using shorts as fuel.
- Step 2: Distribute as much of your overvalued inventory as possible to retail investors. Schedule press release “New Bull Market”
- Step 3: Let the market go again. Buy back your old inventory at much lower prices. Rinse and repeat.
More seriously, on a fundamental and technical basis, this is not a market to be messing with unless you know how to hedge. Moreover, if you don’t know how to hedge, this is not the time to learn how.
Odds of a big market breakdown are both high and rising.
Mike “Mish” Shedlock
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