The Power to Rise Comes from Purging

2008/1/9 15:12:50

In fact, it's not just stocks — a fundamental rule of how the games of this world are played is: "The power to rise comes from purging." Without purging, if everyone succeeded and everyone lived in comfort, that wouldn't be the beautiful new world of globalized capital.

Those who reach the top are always the few.

Of course, the power behind stock price rises is even more inseparable from purging. Without people getting off the train midway, where would the last ones come from to be thrown down the well? Without those who miss the boat and get shaken out, where would the final bag-holders come from?

Those who scorn technicals will ultimately be scorned by technicals. For dealing with shakeouts and purges, this ID's theory long ago provided the best method: fractals. Consider this: if a shakeout hasn't even broken the (1,1) pattern on the daily chart, what is there to talk about? For those with strong technical skills, buy back after the shakeout. If you don't have that reaction ability, then don't play the shakeouts. This principle has been stated N to the Nth power times.

Shakeouts, for stocks and capital that are prepared, give an even better reason to rise — the more shaking, the stronger. Drop off a batch of people: travel light, march forward. So many stocks, after a brief shakeout, shamelessly make new highs.

Shamelessness is surely the most glorious thing in the market.

This ID has repeated over and over: the more shameless you are at the start of the year, the more bread you get. January 10th hasn't even passed, and you're already thinking about running for your life? Then just don't do anything this year — go home and practice being a Gentleman Swordsman.

Technically, yesterday's analysis already laid it out: the choice between the second and third scenarios — a 5-minute or 30-minute hub. Regardless of which, the ultimate criterion is whether 5462 points can be effectively held. If held, there'll be another wild charge forward; if not, then rest and wait for enough energy to accumulate before trying again.

Individual stocks don't particularly care about this, because capital is hungry — who cares whether some silly index level is held. With so much capital in the market, even if the index plunges, individual stock action will still not be ambiguous. So this ID already gave everyone a clear signal: weak index, climaxing individual stocks.

Whoever can pocket their bread earliest today is the real deal. If you're not bold at the start of the year, are you going to wait until year-end to go broke?

Slowly, as the pot heats up, the big players will also transform into butterflies and fly all over the sky.

Until 5462 is firmly held, shakeouts will continue. During shakeouts there will be three types of people: those casually sucking blood, those sleeping while watching weekly top fractals, and those getting slapped from both sides. Which type do you want to be?

Heading off. See you.