Tuesday, May 21, 2013

Charts 05-21: one more time

Tomorrow has all kinds of news and fun, giving us a decent chance at a catalyst for this pullback.  The problem is, the channel we are in is so steep, that we don't even think of the 1640s anymore -- we'll be lucky to tag 1654 mid-day before we are off to the races again -- FOMC notes, etc.

Wave (i) from April 18 was about 5 days.  If we drop and bounce off the channel tomorrow, 5 trading days sets us up for a mid-day reversal on May 30th.  Since this is a blow-off move, maybe we can be spared the agony of a series of drawn out 5th wave extensions and diagonals, some sick eternal subdividing fractal top.  Those drive me nuts.

Mencken, bitchez!
SPX 05-21

I'm really enjoying the short-squeeze in Herbalife and think it is symbolic of our whole sham of a waste-based economy and dead-end society.  I sincerely hope that HLF rockets to $300 and that everyone involved, all of the players, end up horrifyingly melted and sucked back into the Ark like the desert Nazis at the end of Raiders.

Maybe HLF can join the S&P 500 ...

1 comment:

Christian Gustafson said...

At 1686 this morning, we actually just punched through the top of the channel!

Will we ever see any sort of wave 4 pullback, or did wave 4 already complete, and we're in the next phase of a parabolic blow-off?

Bottom of the channel is 1656 at close today, 30 handles down.