Trading Blogers

that should be the start of the terminal move I talked about before

a href=”http://xtrends.blogspot.com/2009/02/if-you-need-why.html”There will be one less shark in the killing zone…/abr /br /a onblur=”try {parent.deselectBloggerImageGracefully();} catch(e) {}” href=”http://3.bp.blogspot.com/_ZdctlOEsqMQ/SZJHLZ7N5wI/AAAAAAAABck/nxfzyzBXQYI/s1600-h/untitledx.JPG”img style=”cursor: pointer; width: 400px; height: 168px;” src=”http://3.bp.blogspot.com/_ZdctlOEsqMQ/SZJHLZ7N5wI/AAAAAAAABck/nxfzyzBXQYI/s400/untitledx.JPG” alt=”" id=”BLOGGER_PHOTO_ID_5301377972631889666″ border=”0″ //abr /a onblur=”try {parent.deselectBloggerImageGracefully();} catch(e) {}” href=”http://1.bp.blogspot.com/_ZdctlOEsqMQ/SZJHLfpj5OI/AAAAAAAABcc/uNyzgHpAmlM/s1600-h/untitled.JPG”img style=”cursor: pointer; width: 400px; height: 168px;” src=”http://1.bp.blogspot.com/_ZdctlOEsqMQ/SZJHLfpj5OI/AAAAAAAABcc/uNyzgHpAmlM/s400/untitled.JPG” alt=”" id=”BLOGGER_PHOTO_ID_5301377974168446178″ border=”0″ //abr /object width=”425″ height=”344″param name=”movie” value=”http://www.youtube.com/v/W8GaDuCvYbEamp;hl=enamp;fs=1″param name=”allowFullScreen” value=”true”param name=”allowscriptaccess” value=”always”embed src=”http://www.youtube.com/v/W8GaDuCvYbEamp;hl=enamp;fs=1″ type=”application/x-shockwave-flash” allowscriptaccess=”always” allowfullscreen=”true” width=”425″ height=”344″/embed/object

Somehow I tend to think that this crash never set a panic/crash tone in sentimental way although price action clearly demonstrated the greatest panic of the last two decades.br /br /I don’t know, maybe I am missing something. Because of the fact that xTrends called the crash at the precise time and price and 10s of thousands here were enjoying the move, this could mislead me in reading sentiment overall, perhaps.br /br / However when I think about the stuff coming down the pipe these days, I think I may be right about it. Seriously, is there anyone out there buying BAC for an investment? Do you really think its end will be different than AIG, WM, LEH, BSC, MER, CFC, WA, FNM, FRE, C …br /When was the last time you check xTrend’s archives to see what I was telling about all these tarts including BAC. Don’t you suspect that most of the banks could end up like them since they all now are showing similar setups on lifetime charts?br /br /Since November, the market has been chopping without a trend. AND without a spine because something has been broken on Dec 1 2008, with monthly gap. The market is consolidating , compacting energy for the next sell off. So far, the median range since Nov 2008 has been 800-950. This will soon change. When it does, hopefully I will be there again and hopefully I will see some crash sentiment to feel more confident about SPX 600 level.

IF you will need a “why” to explain the coming shock wave, perhaps the final one to terminate this cyclical bear market, I am going to try my best now.br /br /It is now about the economy. Regardless where the rates are, how big the stimulus joke gets and how high they raise your taxes! If this was only a bank problem, the market wouldn’t even let Lemon Bros go. Credit and mortgage was the triggering events. The cancer now went through the system and somethings gotta give. It is no longer a credit and mortgage story, it is about the whole system. The market knows this, benchmarks can not even break through immediate resistance in the face of a massive multinational effort to elevate financial markets. br /br /Me, I do not need to think about the whys and wherefores, I had seen this past crash coming in 2007, perhaps little early and I am seeing more to come now. Couple of months ago, the markets broke through century-old trends that defined the economic and social structure of this country. Based on my trend theories, It will never be the same for many western economies and the markets will eventually do the inevitable. I had defined the basic analogy behind the current situation in a href=”http://xtrends.blogspot.com/2008/10/collapse-of-market-fundamentalism.html”one of my articles/a before. This bear is something you and your ancestors have never seen before. In my opinion this is the beginning of the end of market fundamentalism, this will feed on itself for years. Another chapter of history is in writing, and you have been watching it realtime !

I can not express how I felt when I reviewed the most recent trade record of Sol. It is a unique priceless sensation when you see your methods and teachings successfully used in different time frames on different instruments. I believe Sol will be making the best use of his crash check and is my biggest candidate to to be in the next revision of Market Wizards.

I call it terminal move which should take SPX below 600 soon. I suggest everyone to be careful in the second half of this week. A few month ago, I said C and BAC will be near $2. BAC will crater below $5 on gigantic volume tomorrow. But more important ones are the coming FUBARs. I expect JPM WFC and BK to share the same destiny. This will continue until there is almost no bank left in USA. Perhaps one or two private banks together with a government controlled bank.br /Also time has come for a 4-sigma move in FTSE due to the reasons I explained couple of months ago. And believe or not, the coming blood bath in commercial real estate here will make the collapse of investment banks look like a minor event.