Below, FAS and FAZ. With the benefit of hindsight, the 7-day surge of August was basically matched by the 7-day dip of October. In FAZ, the big moves sandwiched a few pennants. I've permanently adjusted the first pennant, which was a stretch in previous charts. Now it's clearly a matter of up and down trends in Aug and Oct. A major, huge move is followed in each 7-day move by a bit of consolidation (micro pennant). After the Aug run, price agitated but generally rose higher. This time, price consolidated for several days, but now has broken lower on today's gap down, below the micro pennant and well below the recently formed megaphone channel.
The previous range of 42 to 51 is in play now.
Merkel and Sarkozy hold the cards but it's the Fed/White House
who is the dealer and the game is absolutely rigged, ain't it?
Today's gap down sends a message to bankster shorts
but I'm more interested in seeing how cheap FAZ gets.
Is the run done in FAZ? It seems so, but there's no assuming anything. I just try to get some sense of perspective, but there's no way to prognosticate what happens on Monday, let alone November or December.
I felt that FAZ would possibly dip to 44 or 42, maybe lower at some point, before the inevitable re-run to 81 and then 100. I still think it's probable, though the plunge protection of banksters — don't you love how the White House talks down the banks and describes future investigations on top of the current ones just before the plunge protection is enacted? — plants doubt.
Finally broke into a new megaphone range.
Next stop could be 15 though a dash of QE3
would send it much higher.
Doesn't matter who provides the fuel.
This motor is at full throttle as the banksters
truly show who's still in control.
Update 1:02 pm The algos tend to trade on technicals, and this gap up and strong close lead me to believe the machines will pour in on Monday morning, boosting FAS and burying FAZ. Howeverrrrrrrr . . . there is the Euro debt crisis and the supposed talks/resolution/bs coming over the weekend. Anything could happen to trigger a market rally or selloff. So believe what you will and peg your hard-earned fiat currency to it, as you put your money where your mouth is. My mouth is uttering simple words like, "hell no" and "this shit is crazy." So I remain all cash, not trusting anyone or anything.
The banksters have many tricks up their sleeves, but if I can get a pocketful of FAZ at 35 and leave it alone for a year or two, I may do just fine. Sooner or later, the poopoo will hit the fan.