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Wednesday, January 28, 2009

The Setup

Those who dont know about fractals or if you missed my earlier call on the same, please go and read the fractal call I made in September before the big plunge -> GO

Okay now coming to situation now...I have posted the chart with the fractal outline below. Its self explanatory and it should be fairly easy to see if the moves are playing out as forecasted. Till date I was looking at the fractal but still the moves were not clear enough but with recent price action, I think we are close. 
 

The other thing I find worth to mention here is when we hit the recent bottom last week, I would have covered but I was looking for lower since the fractal suggested the same...Unfortunately market always acts the way that is least expected. So shorts are now squeezed and retail and TV analysts seem to have gotten bullish again. I think we are very close to another short term top right here. I will be watching today's and tomorrow's action closely.

The Bottom Line - Until we go above 3150, I will remain bearish.

Best.

3 comments:

shaq said...

Will a breakout above 2870 remove f7 ?? or will it remain intact oushing f7 some more higher.This looks like a falling wedge pattern also...
so somewhere arnd next week the indications r to make a gradual fall to 2500 levels ...then pullback and final fall...
this looks like one complex setup...hope it plays out

Yoda said...

I totally agree with your analysis, Lee. It's just a pattern-wave about to crash... shorts surfing-time.:)

*fingers crossed*

Lee said...

Thanks Yoda...Fingers crossed here also! :)

Shaq, did not see this comment before..Hope latest post would've helped...This is a pattern...It can work...It can fail...Probability of working is very high though...