SSG And QID Have Been In Breakout For Two Weeks
Sunday, 31. August 2008, 00:28:27
The Semiconductor Index closed at 352.82; this is just above the major support level of 350.70 recorded May 5, 2003
Anthony V. Caldaro's chart of the semiconductors, $SOX, shows semiconductors are perched at support -- and about to fall massively lower.
Intel manifested an abandoned baby candlestick on August 28, 2008; and fell parabolically lower on August 29, 2008, in large part on on Dell's 17% fall as the PC maker sees a slowdown. Here is the Stockcharts.com chart of Intel, INTC, since March 17, 2008 which was when the Federal Reserve announced assistance for the buyout of JP Morgan and the provision of TAF, TSLF and PDCF facilities. The TAF rally rally ended on May 19, 2008. The Dollar Rally began July 15, 2008 and ended in stocks on August 11, 2008; yet the Dollar Rally itself continues strong for now, with trading above 77. All I can say about Intel is lookout below.
The chart of Intel communicates that the age of prosperity and consumer electronics is now over.
Jack Chan of JC's Buy And Sell Signals gave his sell signal on the Semiconductors, SMH, and the Nasdaq, QQQQ, this week.
The Proshares bear market ETFs SSG, and QID are in breakout.
This MSN Money chart of SSG, the 200% inverse of the semiconductors, and QID, the 200% inverse of the the Nasdaq, shows they have been in breakout since August 15, 2008, which was for all practical purposes was 'Peak Dollar'.
Peak Dollar, being August 15, 2008 through August 28, 2008, is seen in the chart of the US Dollar, $USD.
The ongoing 3 month Yahoo Finance chart shows SSG and QID going up and INTC down since August 15, 2008 ... SSG, QID, INTC
Gold is going headed up
Anthony V. Caldaro' chart of gold shows it has just completed an Elliott Wave 4 Down at $777.70, and is trading now at $835 ... Gold is now in an Elliott Wave 5 up with a price objective of $1,000
The S&P is going down
Anthony V. Caldaro's chart of the S&P, $SPX, shows a close at 1282, and is falling towards 38% retracement at 1267.
Here is the Stockcharts.com chart of the S&P 500, SPY, manifesting a triple top.
Here is the Stockcharts.com chart of SDS on the launch pad and ready for lift-off.
Contrararian Advisor has good coverage on the Prshares 200% inverse of the S&P ETF, in the article SDS Part 2.
Richard Russell of the Dow Theory Letters relates: "Lowry's Index shows worst lies ahead
"On August 26, Lowry's Selling Pressure Index reached its highest level ever - 756, while Lowry's Buying Power Index dropped to a multi-year low of 210. On that day, the spread between the two indices reached a record 546 points. And I wonder whether the August 26 negative spread (with Selling Pressure dominating) might be the ultimate extreme spread between the two indices. I was thinking that at some point the Selling Pressure Index was simply going to head down while at the same time the Buying Power Index was going to turn up. And someplace in the future, the two indices would re-cross as Buying Power finally assumed the dominant position (above Selling Pressure).
I just talked to Paul Desmond, who runs Lowry's. I asked him why he was so sure that we were heading for 90% down-days. His answer was that this rally is so weak. Overall volume was only 3.7 billion today and today upside volume was only 62.8% of up + down volume. Furthermore, Paul noted that breadth is very weak - breadth should be exploding on the upside here, but that's not happening. In all, this is a weak rally, suggesting that worse action lies ahead!"
Investment Application
While one could jump on board and go long SSG, or SDS, I recommend that one be invested 1/3 long SKF in a trust account, and 2/3 invested in gold at BullionVault and GoldMoney as protection against a systemic risk breakdown.
Many If Not Most Professionals Take A Position 180 Degrees Different Than I DO And Write Bullishly
Angelo Campione relates "The system remains in Buy Mode"
Related Articles
Gold Is Going To Continually Trade Above It's Recent Low Of $778
Anthony V. Caldaro's chart of the semiconductors, $SOX, shows semiconductors are perched at support -- and about to fall massively lower.
Intel manifested an abandoned baby candlestick on August 28, 2008; and fell parabolically lower on August 29, 2008, in large part on on Dell's 17% fall as the PC maker sees a slowdown. Here is the Stockcharts.com chart of Intel, INTC, since March 17, 2008 which was when the Federal Reserve announced assistance for the buyout of JP Morgan and the provision of TAF, TSLF and PDCF facilities. The TAF rally rally ended on May 19, 2008. The Dollar Rally began July 15, 2008 and ended in stocks on August 11, 2008; yet the Dollar Rally itself continues strong for now, with trading above 77. All I can say about Intel is lookout below.
The chart of Intel communicates that the age of prosperity and consumer electronics is now over.
Jack Chan of JC's Buy And Sell Signals gave his sell signal on the Semiconductors, SMH, and the Nasdaq, QQQQ, this week.
The Proshares bear market ETFs SSG, and QID are in breakout.
This MSN Money chart of SSG, the 200% inverse of the semiconductors, and QID, the 200% inverse of the the Nasdaq, shows they have been in breakout since August 15, 2008, which was for all practical purposes was 'Peak Dollar'.
Peak Dollar, being August 15, 2008 through August 28, 2008, is seen in the chart of the US Dollar, $USD.
The ongoing 3 month Yahoo Finance chart shows SSG and QID going up and INTC down since August 15, 2008 ... SSG, QID, INTC
Gold is going headed up
Anthony V. Caldaro' chart of gold shows it has just completed an Elliott Wave 4 Down at $777.70, and is trading now at $835 ... Gold is now in an Elliott Wave 5 up with a price objective of $1,000
The S&P is going down
Anthony V. Caldaro's chart of the S&P, $SPX, shows a close at 1282, and is falling towards 38% retracement at 1267.
Here is the Stockcharts.com chart of the S&P 500, SPY, manifesting a triple top.
Here is the Stockcharts.com chart of SDS on the launch pad and ready for lift-off.
Contrararian Advisor has good coverage on the Prshares 200% inverse of the S&P ETF, in the article SDS Part 2.
Richard Russell of the Dow Theory Letters relates: "Lowry's Index shows worst lies ahead
"On August 26, Lowry's Selling Pressure Index reached its highest level ever - 756, while Lowry's Buying Power Index dropped to a multi-year low of 210. On that day, the spread between the two indices reached a record 546 points. And I wonder whether the August 26 negative spread (with Selling Pressure dominating) might be the ultimate extreme spread between the two indices. I was thinking that at some point the Selling Pressure Index was simply going to head down while at the same time the Buying Power Index was going to turn up. And someplace in the future, the two indices would re-cross as Buying Power finally assumed the dominant position (above Selling Pressure).
I just talked to Paul Desmond, who runs Lowry's. I asked him why he was so sure that we were heading for 90% down-days. His answer was that this rally is so weak. Overall volume was only 3.7 billion today and today upside volume was only 62.8% of up + down volume. Furthermore, Paul noted that breadth is very weak - breadth should be exploding on the upside here, but that's not happening. In all, this is a weak rally, suggesting that worse action lies ahead!"
Investment Application
While one could jump on board and go long SSG, or SDS, I recommend that one be invested 1/3 long SKF in a trust account, and 2/3 invested in gold at BullionVault and GoldMoney as protection against a systemic risk breakdown.
Many If Not Most Professionals Take A Position 180 Degrees Different Than I DO And Write Bullishly
Angelo Campione relates "The system remains in Buy Mode"
Related Articles
Gold Is Going To Continually Trade Above It's Recent Low Of $778
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