2007's Low-Key Market Close Foretells Next Year's Market Character

2007/12/28 15:27:45

Actually, that statement is somewhat flawed. Though the index was low-key today, not all individual stocks were low-key — for example, most of the stocks this ID mentioned continued their upward push. This also foreshadows a basic characteristic of next year: the index won't offer much juice (unless futures come out soon), but individual stocks will have plenty. As for next year's analysis, it was given early on — please see "2008 Market Outlook 2007-12-20 15:59:05"

Today's market was technically very standard: a standard top divergence appeared after the third buy point, which then caused the trend to expand from the 1-minute level to the 5-minute level. Now a new 5-minute hub has formed, and what follows depends on the oscillation process of this 5-minute hub. Of course, if this 5-minute hub somehow oscillates into a third sell point, then achieving moderate prosperity or initial affluence wouldn't be anything strange. There's no need to predict anything here — just watching this oscillation will give you a handle on things.

However, as mentioned yesterday, the market didn't choose to create a bigger bear trap below the 120-day moving average, so the significance of the bounce back will be somewhat diminished. First watch the 5-week moving average — if it can stand above it, the momentum will be stronger; otherwise the pressure for another bottom test remains significant.

Current operations are simple: continue treating things from a hub oscillation perspective, except this time the oscillation is of a larger level. Operationally, it's still guerrilla warfare. As for positional warfare and the like, leave that for the bulls and bears. This ID's operating philosophy is simple: fire cold shots, shoot hidden arrows, specifically target the bulls and bears when they're out of steam, and kick them when they're down.

Kill both bulls and bears alike — seize opportunities to kick them when they're down and fire surprise shots. This has always been the unmatched method for oscillating markets. Profits in oscillations are always refined from the corpses of bulls and bears. Though cruel, this is the way to survive in oscillating markets.

In the market, the greatest cruelty is sending yourself to the chopping block; in the market, the highest morality is marching forward over the corpses of those who lost their rhythm. The market is the market — those who pretend to be moral paragons are either already dead or about to die. Is it necessary to listen to their moral lectures?

Of course, please do take note: before you've become a steel warrior, there's one best way to preserve yourself intact — during major-level corrections, cling tightly to your little stool and don't participate in any rebounds whatsoever.

Better to miss an opportunity than to make a mistake — the great, glorious, and correct little stool.

Signing off first, see you later.

Note: the 300 below has not yet been completed.