A Return to the Scene of the Crime

By: Erik Swarts | Thu, Dec 8, 2011
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Scene of the Crime

As if the play by play from our European counterparts wasn't enough to bring back the traumatic memories of 2008 (quite seriously - it has been verbatim), the market has also returned to the pivotal price zone where it embarked upon its historic swan dive.

As of yesterday's close, the market is rubbing up against the area that became resistance once Lehman Brother's failed. I would be fooling myself if I considered it a mere coincidence that this level has been of such critical importance this year - and where we find ourselves through the threshold of another chapter in the credit crisis.

The bottom line - from my perspective, is the markets structure has been broken and will likely in the near future embark upon another exploration in price.

And yes, I am thinking head lamps - not sunglasses.




Erik Swarts

Author: Erik Swarts

Erik Swarts
Market Anthropology

Although I am an active trader, I have always taken a broad perspective when approaching the markets. I respect the Big Picture and attempt to place each piece of information within its appropriate context and timeframe. I have found that without this approach, there is very little understanding of ones expectations in the market and an endless potential for risk.

I am not a stock picker - but trade the broader market itself in varying timeframes. I want to know which way the prevailing wind is blowing, where the doldrums can be expected and where the shoals will likely rise. I will not claim to know which vessel is the fastest or most comfortable for passage - but I can read the charts and know the risks.

I am not a salesperson for the market and its many wares. I observe it, contextualize its moving parts - both visible and discrete - and interpret.

I practice Market Anthropology - Welcome to my notes.

Erik Swarts is not a registered investment advisor. Under no circumstances should any content be used or interpreted as a recommendation for any investment, trade or approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational and informational purposes only. All opinions expressed by Mr. Swarts are subject to change without notice, and the reader should always obtain current information and perform their own due diligence before making any investment or trading decision.

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