~reposted from pebblewriter.com
I normally construct charts in log scale. In general, I regard it as a more legitimate way of viewing time and price relationships. But, I try to check in on the arithmetic picture from time to time.
Here are a few arithmetic charts to consider...
It's safe to say that the arithmetic charts agree with the log charts I've been constructing -- that the next move is higher (absent much worse news out of the euro zone, of course). If I'm wrong, I think the downside is in the 1275 area.
I just spent an hour perusing some of my favorite sites, and almost every one of them is extremely bearish at the moment. I don't know folks, I could be way out of line here...feeling pretty lonely in calling the bottom here again.
As I was discussing with a reader this afternoon, there have been a lot of these situations lately -- where I seem to be the odd man out. So far, it's worked out pretty well. But, I can't escape the feeling it'll catch up with me sooner or later. Maybe it's all the black swans circling us, their dorsal fins a sobering reminder of the cost of being wrong.
I know I'm repeating myself, but please use stops. Things are much too hinkey to hang your hat on my or any other forecast without downside protection.
I normally construct charts in log scale. In general, I regard it as a more legitimate way of viewing time and price relationships. But, I try to check in on the arithmetic picture from time to time.
Here are a few arithmetic charts to consider...
It's safe to say that the arithmetic charts agree with the log charts I've been constructing -- that the next move is higher (absent much worse news out of the euro zone, of course). If I'm wrong, I think the downside is in the 1275 area.
I just spent an hour perusing some of my favorite sites, and almost every one of them is extremely bearish at the moment. I don't know folks, I could be way out of line here...feeling pretty lonely in calling the bottom here again.
As I was discussing with a reader this afternoon, there have been a lot of these situations lately -- where I seem to be the odd man out. So far, it's worked out pretty well. But, I can't escape the feeling it'll catch up with me sooner or later. Maybe it's all the black swans circling us, their dorsal fins a sobering reminder of the cost of being wrong.
I know I'm repeating myself, but please use stops. Things are much too hinkey to hang your hat on my or any other forecast without downside protection.
...continued on pebblewriter.com...
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