I hope these past days' posts with breadth analysis and levels and conditions that I worked out has kept you out of losses.
Too many kept talking POMO-POMO. So much so that when POMO contracted Fed-Glitch, it became major headline -- You gotta wonder how low the free market principle has sunk that it all depends on POMO
Yet, market kept selling even after Fed-Glitch was resolved.
I guess if everybody expects POMO to do POMO, then, at some point POMO becomes NO-GO -- even if temporarily -- just to kill as many from the crowd as possible.
During the QE1, everybody was hot and heavy on economy and green shoots and stuff like that. Paying attention to Fed purchases was very effective since it was only discussed in some elite circles
Now, PMOM-Mania has gone main stream. I am not saying it's gone passé -- just that everybody expects it to behave in a certain way and the POMO-Master knows what everybody expects.
We follow price and try to analyze it in conjunction with breadth, momentum, sentiment, etc,etc.
Stuff like POMO are mainly big picture fundamental for us.
Excellent week if you ask me. We were on the ball the whole time.
Have a Nice Weekend!
S&P 500 – May 15, 2012 - Bottom Line: Long term trend is up. Mid-term trend is down. Short-term trend is down Weekly S&P stage is Late Advance (2-C) Daily S&P stage is Strong Decli...
1 year ago