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The State of the Trend

By: George Krum | Saturday, March 9, 2013

Most are probably familiar with the quote attributed to Einstein that insanity is doing the same thing over and over again and expecting different results. The financial version of insanity is expecting a crash or even a sizeable correction while the Fed is engaged in quantitative easing.

Since the current round of QE is open ended, that raises the probability that the QE III fueled rally may surpass in length the previous rallies.

The weekly chart below illustrates the point:

S&P500 Weekly Chart

There's also the question of whether the belief that one can print his way to prosperity may also be some form of insanity. But we'll discuss that topic at a later date.

For the time being, the trend remains up for all the major indices, in all time frames.

 

Author: George Krum

George Krum
www.citdates.blogspot.com

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

OddsTrader - combines the power of Hurst Channels with proper risk and position size management. For a web version see OT Signals below.

Gann 9 - 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).

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 - pairs trading, one of the most successful hedge fund trading strategies, is now available on your smart phone.

OT Pivots - combines the power of pivot lines with cycles to provide you with concise technical analysis and powerful trading signals.

OT Signals - a web app accessible from any browser, tablet or pc. It gives buy/sell/hold ratings for any instrument from around the world, and defines the trend and support/resistance levels.

Copyright © 2011-2014 George Krum