The first sign that more trouble is coming will be inability to smash back up through the 200 DMA. If this goes through for example with a gap like it did at the small red arrow then get un-short.
Saturday, October 24, 2015
[WFC] likely ready for collapse.
Before we can really say that the markets are under serious stress, the darling banks like Wells Fargo have to break down technically. I think we are seeing it happen right now. The blue line is the 50 day moving average ("DMA"). The red is the 200 DMA. Note how WFC smashed through both of these like they weren't there and has now crept back up to test the 200 DMA from below. The 50 has crossed below the 200 which is the so called death cross. It really isn't a death cross. What it really marks is the retracement of a major wave. What is shown in that chart is everything since Aug 2011. That whole time there has been no death cross up until now. Somehow I don't think that "buy the dip" longs are going to get away with such a small amount of pain after such massive gain.
The first sign that more trouble is coming will be inability to smash back up through the 200 DMA. If this goes through for example with a gap like it did at the small red arrow then get un-short.
The first sign that more trouble is coming will be inability to smash back up through the 200 DMA. If this goes through for example with a gap like it did at the small red arrow then get un-short.
Hi,
ReplyDeleteLove your website, a breath of fresh air compared to most of the other stuff published online.
Can you take a look at UNG/$natgas? I think we are in wave 5 down, possibly coming up on a 3 year low here very soon and wanted to see what your wave count would look like.
Thanks!