iBankCoin
Joined Nov 11, 2007
1,458 Blog Posts

Bulls Grow A Pair, But Come Up Short

The Bulls obviously liked the ADP report today, and succeeded to push the indexes up enough to record a follow through day. William O’Neil and Investor’s Business Daily use the follow through day as an entry signal following a market correction. I was shocked that IBD modified their entry criteria (IBD Abandons Their System and Places Market in Confirmed Rally) when they recorded a follow-through day last week. Had they just waited patiently, they would have gotten their follow through day without modifying their methodology.

The rally today was impotent. More of the same: big moves accompanied with slack volume. The Nasdaq, otherwise known as the main bull cheerleader, still sits ~35 points below it first area of resistance.

The action reminds me of when I used to live in Georgia. I lived next door (well, several hundred acres away) from an Emu farm. I would help the farmer “harvest” the Emu. The Emu were kept within fenced enclosures 20 feet wide by 60 feet long. The owner would put on a cup, combat fatigues, and combat boots. His name was Jeff, and he was about 6 foot tall and 225 lbs. He would sneak up behind a huge bird and jump on its back, much like a cowboy from behind a horse. Wrapping his hands around its long neck, the bird’s legs would fold beneath it, and he would force it too the ground. Once on the ground, he kept one hand on the base of its neck and used his other hand to stretch the bird’s neck out on the ground.

Now, I’m sure you’re wondering just how we did the bird in. You’re probably thinking that us dumb Southerners would use a dull machete to lop off the bird’s head. Or even an axe. Even considering such a method shows how little you know about Emu.

By far, the preferred method of slaughtering the bird was with a .45, point blank. Once the bird was settled down with its neck stretched out, I would put the barrel of the pistol between its eyes and pull the trigger.

Now, let me bring this back to the market action.

Once I pulled the trigger, Jeff and I would simultaneously jump up and run as fast as we could to the gate of the pen. You see, chickens really do run with their heads cut off. And chickens that weigh 100 lbs, run 30 miles per hour, have 3 big talons, and jump 6 feet high, are fairly dangerous when their heads are blown clean off. Seriously, those birds would absolutely destroy their pens, ripping apart commercial grade fencing, all with no heads. Simply put, life is often not extinguished like a flame between moist fingers. Often, death is not a peaceful giving-in but rather a violent struggle against an indomitable foe.

Such is the market.

Enjoy these death throes, bulls.

Until resistance is broken, you’re all still running around with your heads blown off.

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21 comments

  1. JakeGint

    Awesome imagery. What did you harvest the emus “for” exactly?

    Your scenario fits with my “Ode to RIMM” in the PG, as well.

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  2. ducati998

    woodie,

    I would tend to agree, GS, somewhat of a bellweather for the financials, traded rather weakly all day……till the close, where it regained a little respectibility.

    All a bit “touchy, feely” but, sometimes better to err on the side of caution.

    jog

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  3. Woodshedder

    Jake, we ate them. You could get four HUGE omelettes from one egg. Most of the meat was sold.

    Yes, I love Dylan Thomas and had your post in mind the whole time I was writing.

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  4. Dinosaur Trader

    Excellent post, Wood. Agree with Jakey about the imagery.

    Single-handedly attempting to bring ibankcoin up out of the “elementary school” status.

    -DT

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  5. The Fly

    You’re a filthy liar and a thief.

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  6. DPeezy

    Would you call the August pattern an inverse head & shoulders?

    If so, we can probably expect the market to behave similarly now. We just got done with the head and now we’re ready for the shoulder. That will be done just in time for The Fed & Dec. 11th and then we shall begin our long-awaited Santa Claus rally.

    Cheerio.

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  7. DPeezy

    By the way…this ‘first class’ section of iBankCoin has much nicer looking comments to go along with the high quality writing and imagery.

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  8. danny's portfolio

    Shed, this post had me in tears of laughter!

    Point blank with a .45? HAHAHHA

    I will pay your friend $100 for the opportunity to shoot an enu in the face with a gun.

    How can I contact him?

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  9. danny's portfolio

    *emu

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  10. The Fly

    This was a very funny post.

    However, it confirms my inbred stereotype of you dumbass Civil War losers.

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  11. JakeGint

    Shed — whaddaya think of volume today… specifically on the SPYders?

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  12. JakeGint

    Cubes suck too.

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  13. The Chad

    Fascinating stuff… about the Emu’s I mean. Can you post more about these type of things.

    Continually listening to the bullshitters (lead by Fly) during false bounces is really getting old.

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  14. newequity

    here is the bird:

    http://www.olegvolk.net/olegv/north/emu.jpg

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  15. yeomps

    Honey Hole anyone?

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  16. newequity

    Time to get on the bull wood.

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  17. vixen

    WTF? The ADP report comes out TOMORROW! Oh, you mean someone leaked it? I’m shocked, shocked!

    Brian Shannon on Alpha Trends has been pointing out the inverted H&S pattern in August and the one forming now.

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  18. JakeGint

    Who moved the bear to the right side again??

    It was good on the left, as the webmeister indicated….

    What’s on the newspaper? “Do bears?”

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  19. Woodshedder

    Sorry folks, I was out of the office all day today.

    Let’s see, in order:
    Dpeezy, inverted [email protected], yes. Santa Rally, don’t count chickens yet. Thanks for your kinds words about my writing.

    Danny- thanks. It was, um, interesting, as I don’t particularly enjoy guns, or killing things. But it was a necessary evil. Last I heard of Jeff is that he had packed up and moved to Atlanta and was running a YMCA. I doubt he’s harvested EMU in 10 years.

    Jake, volume sucked. Post forthcoming. More impotent bulls.

    Chad, will do.

    NewE- I will never ride a bull wood.

    Yeomps, this is the honey hole. I still believe a few weeks from now that most will be shocked at how obvious this short set up is.

    Vixen- BLS employment situation Friday. ADP jobs report yesterday. No leak, it just comes out Wednesday. Take a look at my other blog for a link. Click on my name to go there.

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  20. Crawford

    What’s this? Chicken Little calling the Bull Emu?
    Odd, yes?

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