I’ve been meaning to post but work and moving has been getting to me. It’s been a little while so let’s do a recap…I posted this chart on Feb 17, 2009:

We broke our symmetrical triangle and closed below 800 that day…both were signs that a new leg down was going to begin. Let’s take a look at what has happened since:

Excuse all my trend-lines but as you can see we continued further down as expected. What surprised me however was that we couldn’t hold support at 750 (741 to be exact, a key support level). We did get a bounce on the 24th of February and I honestly thought we had formed a double bottom (a bullish formation) at that point but we didn’t! Instead of following through we broke below 741 breaking yet another key level. I must say I was very surprised to see this on Friday…I have been mentioning the “bearish pennant” in my last few posts as a possibility but come on, I did not want to see it happen!! I’m trying to be optimistic but Friday’s action forced me to short the markets yet again. I felt we were oversold but I had to short to hedge my two remaining longs and I’m glad I did!!!…cause what happened TODAY shocked me even more. We broke another major trend-line!!!! I do apologize for all the “!”s but how could you not be bearish with all those cracked support lines? We are in a primary downtrend and it seems to be worsening daily…please do yourself a favor and do some research on bear ETFs. Try either Horizons BetaPro ETFs or ProShares for a start.

Happy trading!…and don’t forget to check out HY Markets and all my other sponsors!! Thanks again to all those who have subscribed to my feed/newsletter, it means a lot!!!

Richard
richard[at]hedgeagainstspeculation.com