The State of the Trend

By: George Krum | Sat, Jul 28, 2012
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Kudos to signor Draghi who single handedly sparked a market rally of Olympic proportions. As a result, the SPX remained firmly within the uptrend channel, and reached a preliminary resistance level:

Although market momentum has reached its limits:

market breadth hasn't reached overbought levels yet, suggesting that one more push higher, to coincide with month end window dressing, cannot be excluded:

And since we started this article with a reference to Europe, here's my take on what's going on there. In my view, the Union is going through its own "perestroika" (remember that term?), aimed at keeping the status quo intact. Since the EU is not the Soviet Union, maybe, just maybe, they have a chance at succeeding. If not, however, the end will be very similar. When the parties involved realize that the political/monetary break-up is inevitable, it will happen very quickly, within a matter of weeks. It will, probably, be followed by years of pain and hardship for the masses, but it will not be the end of the world, and a new political/economic entity/ies will emerge.

On that happy and positive note, it's time to enjoy the summer, and let the Games begin!

 


 

George Krum

Author: George Krum

George Krum
www.citdates.blogspot.com

George Krum is the author of the "CIT Dates" blog, and the following apps available from iTunes:

OddsTrader - uses the power of Hurst Channels to produce price and time targets, and combines them with proper risk and position size management.

OT Trend - helps you quantify and forecast the seemingly random ebb and flow of stock, index or mutual fund movement.

OT Fibonacci - automates the process of applying Fibonacci numbers, ratios and time series to any security.

OT Seasonal - allows you to perform seasonal analysis on practically any security from around the world and to build long-term forecasts and models.

OT Pairs - is the first mobile app that gives users access to one of the most profitable and time tested hedge fund trading strategies.

OT Pivots - combines the power of Pivot lines with cycles and automatic signal generation.

Gann 9 - is the only financial app that allows users to effortlessly apply the legendary W.D. Gann's tools and methods for trading (including the Square of 9).

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Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/