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THE CHART ROOM


johnyholiday

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Johny deals the cards as a meditation

,and those he plays never suspect he doesn't play for the money he wins

,he doesn't play for the respect, he deals the cards to find the answer, the sacred geometry of chance, the hidden law of probable outcome, the numbers lead a dance, know that the spades are the swords of a soldier, know that the clubs are weapons of war, know that diamonds mean money for this art ,hence the fear and greed that sits at the green table,fully transparent as you capitulate your bifurcations ~$~all disclaimers apply ~$~

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You know we need to get back to some new marketing, where big speakers are sexy, and men with them...... create a mood that can't be done with little ole box cubes and a few notes woof box!

Klipsch... You make gigantic speakers for movie theaters.... USE this for your BIG line up too!

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Subprime this.... subprime that... who cares ....is the yield curve inversed thats all that matters.... ~$~ all disclaimers apply ~$~ {edited ~ 8 hours later}

caught some of Pres. Bush's comments. was hearing things when he said, "We will provide enough liquidity to allow the market to correct". If johny heard this statement correctly, it must mean that they will inject enough liquidity, often enough to have an orderly sell off and not have a mini-crash. This trade off would allow Bernanke to not drop interest rates and save the Dollar from a radical drop.

President Bush's actual comments were: Another factor one has got to look at is the amount of liquidity in the system, he added. In other words, is there enough liquidity to enable markets to be able to correct? And I am told there is enough liquidity in the system to enable markets to correct ... the only person that could "have told" him there is enough liquidity in the system is Bernanke, this is a comment relative to a discussion with Bernanke. What the comment implies, is that the Fed will facilitate an orderly correction while being proactive to not allow a mini-crash. This is a fundamental shift in what Bernanke has been doing, so it should add MORE volatility to the market. The reason is, whenever a daily down move is too far out of control, then the Fed will have the Treasury Department buy futures spurring the market back up ... and whipsawing the shorts into covering. From their standpoint, a part of their mission is to keep stability in market place.

Last night, the European Central Bank injected 61 billion euros of liquidity into the system. In perspective, this amount is 150 higher than the amount they injected on 911.

Most other Central Banks injected "double" the amount of their daily average. Japan injected 8.48 billion.

Up until now, the Fed was trying to keep the market from correcting ... now they will only inject liquidity on an "as needed basis" as perceived by the Fed.

So what happens today? With all the other Central Banks doubling liquidity last night, the Fed will have to be in "concert with them" and they should follow through with a substantial increase in liquidity which would normally spur the market to the upside. But, there is a lot of downside momentum from yesterday that has to go back into balance before increasing liquidity can push the market up on an intra-day basis. Watch the last hour of the day very carefully, as that could be when the Fed has a large injection that would force out many "shorts" before the weekend ~$~ all disclaimers apply ~$~

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Now old johny does a little Chinese candlestick reading.... after all they have been using them for over 2000 years+...yep before that crazy Inca Yuphana {calculations based using the Fibonacci sequence}...... before computers.... before informericals ..heck even before the PWK forum..etc

but never seen one this weird in this context. Wow ~$~ all disclaimers apply ~$~ old johnys not 2000+ years old yet!!,and inversely chart mathematical principles have had over 2000+ years to prove they don't work .....or do they!? only in the fullness of time will we know[8-)][;)]

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I kept my dough in a safe
CD

Until this broker called on me.

He had some red hot stocks to sell,

And now he's doing very well.



He taught me real investor
smarts

Like head and shoulders on the charts.

learned all sorts of fine techniques,

But still I'm buying at the peaks.



I tried some bets on shopping
malls;

I played the options - puts and calls;

The dough is going quick and snappy;

My friend the broker seems quite happy.
To recoup my losses, if you
please,

He put me in commodities.

I bought contracts in corn and beans;

I should have cranked on slot machines.



My bank account is now too
thin

For me to trade the Honda in.

I've had it since the early Eighties;

My friend just bought a new Mercedes.
W F Hummel
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VIX (Volatility Index) concentric circle.... "The Church of What is Happening Now", is a huge rise, that is taking the VIX above the highest resistance point of

the concentric circle This is suggesting that we are going to move into a market

that has greater instability over the coming months. We are likely to see capitulation down moves,

followed by fairly quick, sharp market rallies to the upside.

This down move is largely built on the pre-expectation of sub-prime blah blah .....yet it is already being factored into the market ... if it is not as bad as expected, then the market will go rushing to the upside, that news is at least two to three weeks away when the requested report to regulators shows up

If the news comes out and it turns out to be worse than imagined, then we will be moving

down People are afraid of what

they can't see ... so people are imagining the worse. They may be right, and they may

be wrong. ~$~all disclaimers apply~$~

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