Members of The PPT know it has been locked in OVERBOUGHT mode since December of 2011, meaning it missed out on the early year run up. We have a system in place that buys TZA/TNA with spectacular 3 year results. There were three purchases of TZA in early 2012 that were very much underwater for a long time. However, thanks to the recent dip, those purchases may prove to be eventful or at a minimum hardly damaging to the system’s track record.
I will not reveal what the Overall Hybrid is flagging, out of respect for paying members of this elite club. However, I will tell you breadth is incredibly low and certain ETFs are being flagged OS, alongside a wide array of equities.
Here is the data on DIG.
My heart wants the market to bounce on Monday; but my brain says we will flush out a little more before a respite is delivered. Either way, we’re closer now to being legitimately OVERSOLD than at anytime since late 2011.
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Just happy to hear the PPT isn’t flashing “end of days” yet.
The propaganda has been delivered and it wants us to believe Greece would leave the EU with dire consequences. This wil never, ever, ever, ever happen. The entire idea it would leave is a massive charade. Fakey fear news drama #23,948.
“Greece exit would trigger wave of disasters for Europe’s banks”
http://business.financialpost.com/2012/05/23/greece-exit-would-trigger-wave-of-disasters-for-europes-banks/
“Mexico’s Ortiz says Greece exit could be worse than Lehman”
http://www.reuters.com/article/2012/05/18/us-eurozone-ortiz-idUSBRE84H17P20120518
Time to play the contrarian. The propaganda is too obvious. This market is going to head straight up again. BUY accordingly.
Any behavioral economists out there using Google analytics to correlate the intensity of the fear propaganda with the directioh of the markets?
Check out the recent Bespoke article using Drudge headlines….
Woody –
Do you mean this?
http://www.bespokeinvest.com/thinkbig/2012/5/31/the-drudge-headline-indicator.html
I’d be happy just to stop sinking further into this murder hole for a werk or two.
Flush and go.
I actually hope the market keeps tanking and we have a selloff this coming Monday, given that I have heavy puts set.
You guys think it’ll be more likely to bounce then to continue dipping?
Lol great username
The daily SP500 index just hit the 200MA. You want to short big before it confidently moves below the 200 day? You crazy man.
Fly- how much are you down YTD?
On behalf of Fly, I will answer your question.
The answer is…FUCK YOU!
I think 3%. I didnt bother to open my platform Friday.
Bring on the flush out on Monday.
My puts will look good I’ll sell and then wait for the asshole dip buyers.
You have been saying this since SPX 800. Burlap bozo.
If you followed the algorithm, what would your returns be YTD based solely on TNA/TZA?
Down for sure by probably 10pct. Which isn’t much given the x3
How are you taking into account the decay of TZA? I got killed on VIX like you a couple of summers ago, and it wound up reverse splitting. It looks like it may do that again, even with stocks tanking.
Typically, the ranges between OB and OS last max 3 weeks. This is a very unique period where we’ve been in an overbought range for over 6 months.
Yes, the decay has hurt performance but it is an outlier event.
Fly
I think we’re going a lot lower. The two central banks which matter, the ECB and the Fed, aren’t getting it.
Look, I despise Krugman but his latest piece is right on the money. What the two central banks are doing is criminal.. more so by the ECB as you’ll see from his piece.
They simply aren’t getting it and will only do so when everything is broken. We could get respite rallies, but they will only reversed.
Read also monetary economist Scott Sumner, a Friedman heir, to see how the central banks have basically abrogated their responsibility. I don’t feel negative towards the markets. I feel totally dejected and will only reconsider my view once the central banks completely change their tune.
The Right has completely fucked up on this. As Sumner implies and you’ve alluded to at times. We could try Austrian economics but it will get us 30% unemployment and GDP cut in half like it was in the early 30’s.
http://www.themoneyillusion.com/?p=14654
http://krugman.blogs.nytimes.com/2012/06/02/catastrophic-credibility/
J
What the Germans are doing is criminal, locking 17 nations in a currency that does not allow them to compete with them. Then, to make matters worse, they refuse to allow the ECB to monetize the debt, forcing money out of those countries into Germany, where they get to enjoy super low borrowing rates.
I do not believe this is just Germany being Germany. This is insidious, a direct attempt to cripple its neighbors.
You people are insane.
Monetizing debt solves NOTHING!!!. Let the whole thing crash and then we build from the ashes.
Look at 1921 when we slashed government spending by 50% after an economic crash. It created the largest bull market in the roaring 20’s.
More QE solves NOTHING!! I am ready to take the hit and lose my standard of living in order to have a positive future.
Of course. Slowly crash it and then eventually, after the suffering has been maximized, rebuild with the same players, but with more power and control. This has been the plan all along. It’s also in the plan to leverage the media to get lemmings to go along with the plan, enthusiastically. Congrats on that part, by the way.
It was the end of WWI. Would you like to return to the military posture of the US in the 20s and 30s? I would hope not.
Fly, what about unjust enrichment?
If everyone profited from your company (or a nation), would it then be permissible for your clients to not pay you.
Would you be a criminal for expecting they pay a fair share of the cooperative “partnership” or “association” you entered into in good faith.
Wholly analogous. I hope you reconsider and fight your obvious animus.
This is your “stock market”.
http://www.youtube.com/watch?v=MyKNmvJYO7o
Metal Leg,
I believe you are suffering from an infected butt hair, and an inflamed vaginal orifice stretched beyond repair.
I fear that you are fucked up and perhaps experiencing fuckedupness!
Chaos is your friend. Don’t fear it. Blaze.
welcome to correction territory gentlemen
picture is worth 1000 words
http://screencast.com/t/g1Noy3nd
Any bounce at all will be negated by
fly types running for the exits .
just out of curiosity …i gotta know… ..
what is your definition of “fly types”??
Youthful traders ….not neccessarily
by age , but recent entrants in the market (i.e. less than 20 yrs. of experience ) .
Take note of those around you……..
lot of pain on the horizon .
noted..thx
I guess he means guys who hold stocks into apocalypse with 23% drawdowns.
would it be a correct assumption that you are not one of these “fly types”?
if not what “type” are you ?
I know lots of folks on the site can’t stand Soros because he isn’t Right Wing politically, but he makes some excellent points in his article here about his solution for the Euro crisis. Warning: This article is intellectually challenging and doesn’t oversimplify complex issues the way most articles on the subject do.
http://www.georgesoros.com/interviews-speeches/entry/remarks_at_the_festival_of_economics_trento_italy/
Frog…he does make some good points about Europe and the banking system. However, his money backs some of the most far left, anti capitalist, and outright communist groups in America.
Futures look charming