I’m going to give myself .003% w/ regards to the pattern being complete on the Dow Jones Transportation Average. It never did hit, exactly, the 7616 target …but w/ the big move that occurred yesterday odds are that we have a MAJOR top in place. If you have been following my blog this “target” area has been forecast for a while …
I’m a pure play pattern recognition technician. I pay major attention when using “nodes” that are 42,281 days ago. I also pay particular attention when this “node” from 10/29/1896 has been responsible for support and resistance at every major top and bottom in my lifetime.
we finished a MAJOR pattern …the reaction is not surprising.
I type this blog, today, not because I did anything special. Simply, for the past couple weeks I knew a pattern was completing on the transports in this area. And, having been down the travels of a professional trader and succumbing to expectations, having to be right, etc. I simply have now trained my persona to EXPECT NOTHING. It’s a PATTERN and it will either work or it won’t …
Now, that being said, I do ask that you (my fellow bloggers) think about what could potentially be at work here … did the major institutions know this level before I did? I doubt it … did the Federal Reserve have someone tell them that the Transports were going to encounter major resistance? Again, doubtful. Did Warren Buffet have this knowledge? No, I submit nobody was CONSCIOUSLY aware of this level. But, FOR WHATEVER REASON, the psyche, emotions, feelings FLIPPED ON A DIME. At the PATTERN level EVERYONE SOLD. Think about it … no CNBC, no FAST MONEY, no fundamental talking head pundit … a NUMBER was hit (natural square OBTW) and bada bing bong boom EVERYONE SOLD. Take a moment and think about that one …
It worked, the GOOG, YHOO and others didn’t … it’s all probability.
W/ that in mind, the PROBABILITY is rising, albeit slowly, that we are on the cusp of the biggest bear market we have EVER experienced in this country or world.
As for me, I’m just going to wait for a PATTERN and deploy capital …
Make it a great weekend
Bart
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