Market Correction: Special Edition Results [Animated Charts]

Posted by Investing Freak on May 07, 2010
Market Analysis

If you’ve been following my blog recently you might have noticed my April 28, 2010 “Special Edition: Here comes the red ink, correction begins.
On April 27th The SPX stood at 1183 and it swung as low as 1065 during the past 7 trading days to ultimately close at 1110.

As I wrote on the 28th

I finally had time to check on the market a big grin came to my face. A lot went on today and news blamed Greece and Portugal downgrades for the sharp drop. Nobody ever talks about the technical analysis because it is beyond the mind of Joe the Plumber.

The first chart was the EUR/USD which broke an ascending triangle on the daily back in December.  Below is an animation of Apr 27 and May 7 to show the move. If you have trouble viewing the animated image please leave me a comment because it’s the first time I’m using animated content. (CLICK TO VIEW ANIMATION)

Next we’ll move onto the $TED Spread which jumped nearly 100 percent since the 28th. (Click to View Animation)

Lastly I will leave you off with the Investing Freak Special SPX chart animation. Boy was this a move, the red line is the 250 day moving average in case you are wondering. (Click to View Animation)

Where do I see us heading from here? We still haven’t broken some key supports such as the 1088 trendline and the 1060 250Day moving average. So if we drop another 50 point we will still be good to go for a bounce. If more crazy days are upon us?  I will check with BID ( Sotheby’s ) to see if it’s gone below 22 to initiate heavy short positions.

Thats just me and as always these are my opinions and even though they work for me I cant guarantee them working for you.

Have a good weekend and be on the lookout for the latest Current Picks signal changes coming up this weekend.

-K

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5 Comments to Market Correction: Special Edition Results [Animated Charts]

  • Hi K,
    We had our best profit week this year. Hope
    you did too.
    What a great market to trade.
    Take care. God bless.
    Paula

  • nice, now that jim cramer and rick santelli fearlessly led Joe the plumber to ‘buy the dip’ on tuesday, right before the Fat Finger citi incident on thursday, all those pigs are slaughtered and most of trading next week(i feel) will be institutional… so i think we’ll see a sneaky whipsaw swing back up starting monday. we’ll see. it just seems too soon for a real correction, but as far as i’m concerned, let it fall…

  • Paula,
    I made 500% on AAPL put (it went as high as 4000% on next day but I was happy)
    also had an SPY 84 put and cashed out for 2000%+ right after the big crash.

    Now lets have some more of these 😀
    —–
    Daniel,
    Yeah I don’t see real correction yet but then again we just had a 10% correction. Joe the plumber must have clogged up his own toilet now that he lost 10% in a day.

  • K,
    Way to go. The key to our super SPX profit week
    was the SPX box thrust pattern. When this pattern
    breaks, it usualy does so big time. Mother had
    us 400% short.

    Paula

  • AHAHAH ya he definitely took a big dump and probably had a hernia and swollen hemorrhoids