I still don’t understand your chart. Maybe you could provide some commentary.

I think the Qs will test, and fail at, the March low just like everything else. And just like the IWM, they will do some quick catch-up work on the downside.

Matt

Just an updated chart on what the Big Boys have been up to… or down to since my last post:

http://www.trivisonno.com/whitney-gives-big-dogs-a-beating#comment-1041

Here is the latest chart showing them arriving on schedule:
http://www.aandasoftware.com/images/QQQQ-07-03-2008b.jpg

I am expecting a bounce off the horizontal line marking only the half way point of our trip down for the Q’s.

I get a lot out of your blogs, very good info, but what ever happened to the daily withholding taxes chart?

Keep up the good work…. and don’t stay a bear for ever ;o)

I agree on the BDI. Here is what I wrote about it on May 29th:

“…the Baltic Dry Index, which may also be rolling over. It looks as if these two indicators took their initial dives around January when it became clear that the US economy was slowing down, but then mysteriously rallied back. I’m thinking that the first move was the real move, and that the bounce back was the fake move caused by hot money fleeing stocks for a new home in commodities.”

Matt

I still haven’t figured out where all this dumb money will go when oil pops. Treasuries and bonds I assume?

BDI:
http://www.investmenttools.com/futures/bdi_baltic_dry_index.htm

Wouldn’t you know it, but those calls were my only losing trade in two months! But it was also my smallest trade, so I barely got nicked. I just wanted to see if I could catch one of this market’s brief bounces. It would have been a good trade in a “normal” market. But with momentum accelerating to the downside, this market is far from normal.

Coal (KOL) got it much worse than materials and energy today. This is what happens in a real bear – there is no place to hide. And of course, when margin clerks sell stocks, they don’t pause to consider which sector they are in.

Matt

Why do investors feel they need to go long all the time? Is it a patriotic thing? This has been a bear market since January 22nd. The only way I’m going long is to do a few calls on some flyer stocks after a big market drop. But in no way should anybody risk serious $ during this current period.

What happened with the selling of material and energy stocks today? If I were a bull I would be officially freaked out. Thanks pal and keep up the good work.
Crash