Now I know why technical analysis works. It has come to the Street's attention that insider trading is permitted by Congress. God only knows how this information is just now coming to light.It has always been my belief that a secret cannot be kept on Wall Street. Consequently, if you follow the tracks and trail of the big money -- the smart money -- you will be rewarded. The secret of the big money is revealed in the price action of the charts as they tip their hand and display their agenda. Of course, like any good game, there is a strategy, and as you have heard me say many times, they often break 'em down to buy 'em and break 'em out to sell 'em. So, the question is was Tuesday's flush-out to 1292 on the S&P 500 and the 20-day moving average the move that pulls back the rubber band before a fresh leg up above 1309? We saw this as a distinct possibility and stated yesterday that the bulls needed to show up here and now if they were going to. Well, they showed up. Is it just me or does it seem miraculous how many times the market appears to be breaking down but mysteriously gets a transfusion? Lazarus redux. The Energizer Bunny on steroids unbanned by Major League Baseball. Cat on a hot tin roof with nine lives. Excuse this stream of consciousness, but these guys are good! The next question is which move was the exaggeration -- Tuesday's or Wednesday's? Did the market just overreact on Tuesday and come to its senses on Wednesday? Or was Tuesday's decline justified and the one-day "bear" market the mother of all buying opportunities and chockfull of emotionalism? Is the market really this stupid or can you say manipulative? Just askin'. Could Wednesday's rally have anything to do with quarter-end window-dressing? That said, the bulls showed up in spades on Wednesday. But they will have their hands full with the Google ( GOOG) insertion into the S&P on Friday. The key going forward will be the market's behavior once quarter-end is over and we get into April. Then we will get a true inclination by big money's desire to hold 'em or fold 'em. The poker game continues.
|S&P 500 Daily |