Because They're Hungry, They Go Crazy.

2008/1/11 15:10:16

What is the most crazed thing in the world? Hunger. And for capital, it's exactly the same.

Today's market—nothing to say. Weekend effect took its toll, but it's still continuing the oscillation confirmation of 5462 points. Today was obviously just probing in nature—there's absolutely no need to fight for every inch on the index level.

But individual stocks are a different story—capital is starving, Chinese New Year shopping needs doing, and all the goods are getting more expensive. Except for those with water on the brain, the green-eyed starving capital doesn't give a damn about any weekend effect.

From the weekly chart perspective, the next two to three weeks are extremely critical. Why? Because the MACD green bars are contracting, and all fake-outs love nothing more than a sudden reversal during this contraction-to-red transition.

Of course, this is merely a technical trap possibility. On the policy side, logically speaking, no one should be working too hard before Chinese New Year. But whether today's weather follows the norm—no one can say for sure. Predicting the weather is completely unnecessary.

The only thing that's necessary is to go all-out, full speed ahead, and position yourself somewhere absolutely safe. Rain or shine, with enough profit, any change can be faced with composure.

Once we're around the 5600 level, the policy factor becomes extremely important. New officials, new thinking—every market participant is probing and sizing each other up. Floating a trial balloon, testing the wind direction—that's probably not the crux of the matter.

These tedious questions can all be placed into the weekly top fractal, (1,1). For the lazy, if you have no time to probe the interplay of these component forces, everything is in the trend itself.

Look—weekly (1,1) holds, daily (1,1) holds, then you keep sleeping.

Weekend, time to roam free.

Heading out now, goodbye.