Ghosts of 1987

In the weeks preceding the runup to today's crash I saw a number of overlays of the Hope Rally to the 1987 market before the crash, including this comparison and chart:

   

I expect more on this over the next day or two. We explored it here at some depth on the anniversary last October and later in December. Even before then, Yves made the first comparison. What shoudl be clarified overnight are the three main causes of today:

1. 1987: There are some eery parallels to 1987: pending financial reform, program trading then and now, and troubles in Europe: then a falling Mark, now a falling Euro. 
2. Big liquidation: There is a rumor of a failed large hedge fund. 
3. Mistake: There is also a real possibility of a "fat finger" today, hitting the wrong quantity key for P&G and driving program trading bots into a frenzy which abated pretty quickly. Here is that trade (from Market Ticker):

Here is the result (from Jesse's Café Americaín:

Comments

[Michael]

Proctor & Gamble (PG) never traded any lower than $56.00 on the NYSE. Yet, on the Nasdaq it traded down to 39.37 on about a half-million shares ( from 47.50 down to 39.37 ).

With 2.88 Billion shares, that's a market-cap difference (and plunge) of $49 BILLION!

This happened in NUMEROUS large-cap blue chip stocks.

Smells to me like someone on an equity derivative desk had a "Fat Finger" and accidentally sold Billions with a "B" instead of millions, with an "M". Then, the high-frequency algos kicked in "front-running" the sales creating for even more of a cascade and crash effect.

P&G closed at $60.75

[Mamma Boom Boom]

Seems to me that Neely is about to re-gain his good name.

[JT]

Neely has a "good" name???

As if anyone really cares...

But I guess the "paper-traders" do that hang-out on blogs and never pull the trigger.

Too Funny!

[Roger D.]

Once in a while patterns pay off. I posted this rising wedge pattern in the Dow a couple of days ago on Yelnick's diamond top comment. Looks like this wedge is the real deal.

Roger D.

http://yelnick.typepad.com/yelnick/2010/05/the-diamond-formation.html#comments

http://www.screencast.com/users/parisgnome/folders/Default/media/37f0ec4a-4da6-4617-b7d8-898d049eecef

http://www.screencast.com/users/parisgnome/folders/Default/media/80504b38-e8b8-4380-affa-1281d5c45159

[chuanWAVE]

This momentary intraday crash of Dow1000points two hours after i did a facebook posting(below) gives meaning to :

1. My Chinese Calender of the ill-fortune lunar star in play in the West

2. There are still many Yankees lunatics (defined here http://en.wikipedia.org/wiki/Lunatic
as mentally ill, dangerous, foolish, unpredictable) egged on day-in and day-out by pundits here with equally "manic-depressive" syndrome.

If that Calender is to followed again, watch for another similar play May11.

Meanwhile, for the people who habitually shoot and kill their Presidents, read this and learn some Chinese:
--------------------------------------

Voice from the past #2 Chinese proverb

" 十年河东，十年河西."

or

"三十年河东享不尽荣华宝贵，四十年河西寄人篱下。"
http://en.wiktionary.org/wiki/%E5%8D%81%E5%B9%B4%E6%B2%B3%E4%B8%9C%EF%BC%8C%E5%8D%81%E5%B9%B4%E6%B2%B3%E8%A5%BF

East (Asia) Financial Crisis
Crisis 1 : 1997-1998 ...
DoubleDip : 2000-2002

West (US + EU) Financial Crisis
Crisis 1 :2007-2008
DoubleDip :?2010-2012?

Regardless of whatever domestic crises or foreign disasters,
Summers/Geithner/Bernanke/ObamaGovt has to hold the Dow above 10k before the November2010 mid term election so that toxic assets/shares bailedout/bought with US
taxpayers in 2008
can be sold back into the markets at a profit.

Watch out for the shortsales/bets against the MuniBonds/CDS or as all TV pundits has been
speculating : the double dip?
--------------------------------------

ps : Dow did hold roughly around 10k.

[Michael]

During a "Fast Market" atmosphere... the NYSE reserves the right to slow things down execution-wise and goes into "slow" mode and throttles back their executions from milliseconds up to 30-90 seconds.

However, the Nasdaq marketplace and "other" ECN's do not honor the NYSE "halt" process. Thus, you have orders being executed by brokers, traders, algos, etc. in a VERY thin market on the NAZ... searching for liquidity.

This is how stocks like PG, MMM, and ACN trade dramatically lower on hardly any volume, AND the Dow Jones winds up "printing" down 1,000 points.

In fact, Accenture (ACN) traded down from $39.00 to 0.01 cents at 2:47PM Eastern on 75,000 shares. Suffice to say that there were several "prints" during that one minute time period in the $38, $33, and $31 dollar handle before an 18,394 share piece found "liquidity" at 0.01 cents!

I guarantee that there's gonna be a lot of busted trades occurring.

[nspolar]

The best description yet. Imagine all the kaos. Unless one has been around this kind of equipment, it is difficult to feel the massivity of it all. For me this is what makes the oil industry so interesting.

BP WELL BLOWOUT! Great discription of what happened.
Posted by rett2go on May 5, 2010 at 11:13pm
View rett2go's blog
Some of this may be too technical if you are not in the oil field. Sounds like a good discription to me.

Subject: Horizon Incident

Good description of what happened from an interview....

This well had been giving some problems all the way down and was a big discovery. Big pressure, 16ppg+ mud weight. They ran a long string of 7" production casing - not a liner, the confusion arising from the fact that all casing strings on a floating rig are run on drill pipe and hung off on the wellhead on the sea floor, like a "liner". They cemented this casing with lightweight cement containing nitrogen because they were having lost circulation in between the well kicking all the way down.

The calculations and the execution of this kind of a cement job are complex, in order that you neither let the well flow from too little hydrostatic pressure nor break it down and lose the fluid and cement from too much hydrostatic. But you gotta believe BP had 8 or 10 of their best double and triple checking everything.

On the outside of the top joint of casing is a seal assembly - "packoff" - that sets inside the subsea wellhead and seals. This was set and tested to 10,000 psi, OK. Remember they are doing all this from the surface 5,000 feet away. The technology is fascinating, like going to the moon or fishing out the Russian sub, or killing all the fires in Kuwait in 14 months instead of 5 years. We never have had an accident like this before so hubris, the folie d'grandeur, sort of takes over. BP were the leaders in all this stretching the envelope all over the world in deep water.

This was the end of the well until testing was to begin at a later time, so a temporary "bridge plug" was run in on drill pipe to set somewhere near the top of the well below 5,000 ft. This is the second barrier, you always have to have 2, and the casing was the first one. It is not know if this was actually set or not. At the same time they took the 16+ ppg mud out of the riser and replaced it with sea water so that they could pull the riser, lay it down, and move off.

When they did this, they of course took away all the hydrostatic on the well. But this was OK, normal, since the well was plugged both on the inside with the casing and on the outside with the tested packoff. But something turned loose all of a sudden, and the conventional wisdom would be the packoff on the outside of the casing.

Gas and oil rushed up the riser; there was little wind, and a gas cloud got all over the rig. When the main inductions of the engines got a whiff, they ran away and exploded. Blew them right off the rig. This set everything on fire. A similar explosion in the mud pit / mud pump room blew the mud pumps overboard. Another in the mud sack storage room, sited most unfortunately right next to the living quarters, took out all the interior walls where everyone was hanging out having - I am not making this up - a party to celebrate 7 years of accident free work on this rig. 7 BP bigwigs were there visiting from town.

In this sense they were lucky that the only ones lost were the 9 rig crew on the rig floor and 2 mud engineers down on the pits. The furniture and walls trapped some and broke some bones but they all managed to get in the lifeboats with assistance from the others.

The safety shut ins on the BOP were tripped but it is not clear why they did not work. This system has 4 way redundancy; 2 separate hydraulic systems and 2 separate electric systems should be able to operate any of the functions on the stack. They are tested every 14 days, all of them. (there is also a stab on the stack so that an ROV can plug in and operate it, but now it is too late because things are damaged).

The well is flowing through the BOP stack, probably around the outside of the 7" casing. As reported elsewhere, none of the "rams", those being the valves that are suppose to close around the drill pipe and / or shear it right in two and seal on the open hole, are sealing. Up the riser and out some holes in it where it is kinked. A little is coming out of the drill pipe too which is sticking out of the top of the riser and laid out on the ocean floor. The volumes as reported by the media are not correct but who knows exactly how much is coming?

2 relief wells will be drilled but it will take at least 60 days to kill it that way. There is a "deep sea intervention vessel" on the way, I don't know if that means a submarine or not, one would think this is too deep for subs, and it will have special cutting tools to try to cut off the very bottom of the riser on top of the BOP. The area is remarkably free from debris. The rig "Enterprise" is standing by with another BOP stack and a special connector to set down on top of the original one and then close. You saw this sort of thing in Red Adair movies and in Kuwait, a new stack dangling from a crane is just dropped down on the well after all the junk is removed. But that is not 5,000 ft underwater.

One unknown is if they get a new stack on it and close it, will the bitch broach around the outside of all the casing??

In order for a disaster of this magnitude to happen, more than one thing has to go wrong, or fail. First, a shitty cement job. The wellhead packoff / seal assembly, while designed to hold the pressure, is just a backup. And finally, the ability to close the well in with the BOP somehow went away.

A bad deal for the industry, for sure. Forget about California and Florida. Normal operations in the Gulf will be overregulated like the N. Sea. And so on.

rett2go"

[DG]

"

Neely has a "good" name???

As if anyone really cares...

But I guess the "paper-traders" do that hang-out on blogs and never pull the trigger.

Too Funny!"

If I had to guess what your dying words would be, I would guess either "paper-traders" or "college kids".

They're like your "Rosebud".

I've been posting here since mid-2006 and I can honestly say that in those 4 years, NO ONE as useless and as lacking in anything constructive to say as you has been a regular poster.

You'd think after your ill-timed taunting of "perma-bears calling for a crash" (I'd say today qualifies as at least a mini-crash), you'd have the humility to shut your yapper for a while, but no.

And, to just point out the obvious fact, Neely's name is about a billion times (conservative estimate) more well-regarded than YOU.

[Rick]

I have been charting YOY M1 - CPI percentage changes using Fed & BLS data back to 1965. The only other time YOY M1 - CPI has fallen as fast as the current case was Sept 1987! Of course 1987 was the early stages of a wave 5 secular bull market vs. todays secular bear market. So I expect no significant bounce this time. I recall Milton Freidman in "Free to Choose" discussing the short term stock market boom that a surge in money supply over inflation would cause for a period of 6 to 18 months or so. The current M1 surge began in Sept 2008. Time has now run out.

Can the Fed print more money? Just ask Jimmy Carter how that worked for him! Game over.

[Mr. Panic]

If you thought today was bad, wait for the solar eclipse in July (actually lunar eclipse precedes it in late June).......I did mention last week I had seen May 6th as a key cycle date (1 giving props to Jaywiz who has been harping on it 2. Mr. H. had it as a cycle top for bonds---check out TLTs chart today--- and a few others who are using Hurst cycles) but today is just a temporary low. There was a similar day during the tech crash in April 2000 and within a week the Nasdaq was making new lows.
Really, the last three days action is just mimicking the Jan high in forming a three black crows pattern after it broke beneath the diamond top formation in concurrence with the 41 trading day cycle on Monday.
Well off to check the blogosphere and see how things are playing over at Daneric's etc and maybe I'll be back for some more comments later.

[Latest Neely]

Neely turned bearish LAST WEEK and has profits...

Latest Neely Report
http://www.traders-talk.com/mb2/index.php?act=attach&type=post&id=16297

[Roger D.]

The Valueline chart is the kiss of death. Blame the computers and everything else,but Bernanke is a true incompetent,a fool. This market is in crash mode now and crap runs downhill.

Roger D.

[Roger D.]

Btw,

Hank W., great call,sign me up.

Roger D.

[Steven_737]

"In order for a disaster of this magnitude to happen, more than one thing has to go wrong, or fail. First, a shitty cement job. The wellhead packoff / seal assembly, while designed to hold the pressure, is just a backup. And finally, the ability to close the well in with the BOP somehow went away. "

Murphy's Laws in action.

Do you have any schematics to go with that description?
Or provide a link that has schematics and description of the technology - methodology involved?

Thanks.

[JT]

"I've been posting here since mid-2006 and I can honestly say that in those 4 years, NO ONE as useless and as lacking in anything constructive to say as you has been a regular poster.

You'd think after your ill-timed taunting of "perma-bears calling for a crash" (I'd say today qualifies as at least a mini-crash), you'd have the humility to shut your yapper for a while, but no.

And, to just point out the obvious fact, Neely's name is about a billion times (conservative estimate) more well-regarded than YOU." - DG

More typical drivel from Charles "DG" de Gaulle.
Your continued defense of Neely tells me that he must be a family member.
There is simply no other answer for your absurd OBSESSION of defending him.

[DG]

"Your continued defense of Neely tells me that he must be a family member.
There is simply no other answer for your absurd OBSESSION of defending him."

I'm not so much defending Neely as pointing that even compared to someone as obscure as he is YOU ARE A NOBODY.

Bask in your nobody-ness, cuz that's all you got.

[Steven_737]

Hi Duncan;

Did you ever find out if it was actually Karl Denninger posting as Genesis,
or someone else pretending to be Denninger, back in November 2008?

cheers

[JT]

DG,

Let's face it... You are a total JERK-OFF that has very little understanding of how institutional orders get executed in the marketplace, let alone the difference in how the NYSE executes orders vs the Nasdaq. In fact, your post on the previous thread (regarding the PPT) is quite telling in this regard.

But then again, I'm not surprised given that you are nothing but a "paper-trader". If I am wrong about that, please feel free to post your trading blogger for today right here.

[DG]

"I'm not so much defending Neely as pointing that even compared to someone as obscure as he is YOU ARE A NOBODY."

And the reason you will always be a NOBODY is because ALL YOU DO is try to tear others down. Well, that gets old and boring very quickly. You've made your point about Neely a hundred thousand friggin' times. We get it. You think you are better than he is. Well, sport, as the saying goes "you can't beat something with nothing" and showing up here day after day talking about "college kids" and "paper-traders", while it may get you excited, is boring. Why? Because all you're doing is pointing out what you perceive as other's flaws. OK, now you've pointed them out, what do you have to offer that's BETTER? Showing up after the market's already up a dozen points and crowing like you just won the World Trading Championships is NOTHING. Telling us the day before "Hey, the market's good for at least a dozen points to the upside tomorrow" is SOMETHING.

Do more of the SOMETHING and less of the NOTHING. I'm sure we'll all be sooooo impressed by your ability to call the market.

[Wave]

DG,

Why not simply post your trades from today to shut JT up?

Just post them.

[Hank Wernicki]

thanks Roger , ask Yelnick for the chart I sent him last week or the week before

He told me it was a nice fractal...

I stated 1,000 to 3,000 drop in the Dow.

Intraday darn close to the 1,000 point drop.

Oh BTW everyone ( subscribers ) was short on this trades :-) ( a "Big Sell" on the chart )

Hank Wernicki ....................

Oh I also recommended Gold weeks ago on the Ike Iossif show / interview <<<

I think they call that killing two birds with one stone ? correct ?

[DG]

"

DG,

Let's face it... You are a total JERK-OFF that has very little understanding of how institutional orders get executed in the marketplace, let alone the difference in how the NYSE executes orders vs the Nasdaq. In fact, your post on the previous thread (regarding the PPT) is quite telling in this regard.

But then again, I'm not surprised given that you are nothing but a "paper-trader". If I am wrong about that, please feel free to post your trading blogger for today right here.

Posted by: JT | Thursday, May 06, 2010 at 02:56 PM"

You know what, dude, maybe a couple of months ago, when I didn't know just how big of a dick you are, I would have taken you up on the "post your trades" challenge, but, now, my response is "f*** you". Sideways. Twice. I've had all of you that I can stomach, frankly, and I wouldn't give you the satisfaction. I hope you choke on those longs you took at the end of the day. Bet you wish those orders didn't get executed, eh?

I said that the PPT may or may not exist and, frankly, I don't really care one way or the other. It could easily be one of those entities where the threat is more effective than the actuality. But,I trade chart patterns, not conspiracy theories. And, last time I checked, an in-depth knowledge of how institutional orders are processed wasn't necessary in order to distinguish a Triangle from a Flat from a Zigzag. None of that makes any real difference, because it all gets manifested on the chart.

[DG]

"DG,

Why not simply post your trades from today to shut JT up?

Just post them."

See my response to that above. Let him just keep getting all worked up over "college-kid paper-traders". I hope it gets his blood pressure up and he has a stroke.

[JT]

Too funny.

We actually had a small pool (after the market closed) in our trading office to see if DG would post his trades from today... when asked to do so.

A couple of the guys who have been following his posts actually thought that he might be a TRADER, and post his trades from today.

Apparently not.
Looks like I won the bet.
:)

[Forkoholic]

Check out my CRASH predictions before the stock market crashed

http://twitter.com/Forkoholic/status/13306200896

http://twitter.com/Forkoholic/status/13314514413

[JT]

"I hope you choke on those longs you took at the end of the day. Bet you wish those orders didn't get executed, eh?" - DG

You must be talking about one of the other guys in our office (Michael). I wouldn't be too worried about him. Perhaps you should worry more about yourself, no???

I'm flat.
See ya buddy.

[DG]

""DG,

Why not simply post your trades from today to shut JT up?

Just post them.""

One other minor point. Here is what I posted today as we went into freefall:

"Scratch that. Any .99 SPY point rally that takes less than 28 minutes is a buy. I would expect a short-squeeze at some point to trigger that, but today looks more like a forced selling day.

Posted by: DG | Thursday, May 06, 2010 at 11:44 AM"

Yeah, I was early on the timing of the short squeeze/whatever the hell happened, but that logic would have gotten someone long at 105.99 SPY. Anyone who can read a chart can now see that wave structure indicates that a break of 111.14 (look at a 39-minute chart) is a "get out of longs because it could turn into a 'look out below' situation" is your current exit.

You want to speculate on whether I'm paper-trading or a college-kid or whatever or you want to discuss the markets and make 5 SPY points in a couple of hours' time?

Contrast that with Mr. "Big Run Into The Close", posted 1 minute before the S&P started a 20 point dump that continues in AH:

I'm LONG.
here comes a big run into the close!

:)

Posted by: Michael | Thursday, May 06, 2010 at 12:48 PM "

If "Michael" isn't paper-trading, he probably should be.

[DG]

"You must be talking about one of the other guys in our office (Michael). I wouldn't be too worried about him. Perhaps you should worry more about yourself, no???

I'm flat.
See ya buddy."

Right. Office. Other guys. Bet. Flat.

Cuz I'm sure that there's a trading desk out there somewhere where a bunch of dudes who all just happen to have the same posting style (terminology, quirks relating to CAPITALIZATION, specific obsessions) and who all hate Neely and Prechter and who obsess about pointing out their flaws.

Dude, I'm really sure that's true. Really. It's the most logical thing in the world, actually.

[Zendo]

Guys....... DG never works in the financial industries before, so let him have the fantasy to be a big shot in this obscure little blog. (don't understand why doesn't start his own blog)

How could anyone waste time all day to keep posting and reposting his offensive comment against anyone who put Neely down. (or posting irrevlevant market view)

He'll never show you how much money he made, jnever. He'll tell you how sophisticate his method is but give all the excuse not to show his real trading record. If he got provoked, doesn't matter what the subject is, he'll keep arguing, a classic emotional or mental disorder. Everyone, let's do a poll to see if DG is really a mental case?

[DG]

Zendo,

I've never claimed to be a "big shot", so don't put words in my mouth. The people with whom I have good interactions with on this blog aren't the kind of people who would stand for that sort of attitude from me, in my opinion, because they are people with good common sense. All I want to do is talk about the markets. It's you guys who bring personalities into it. Or you post random hit jobs on other people while contributing nothing else to the discussion.

"If he got provoked, doesn't matter what the subject is, he'll keep arguing, a classic emotional or mental disorder."

Really? I guess that makes Socrates the most emotionally and mentally disordered person in history, because that guy argued about EVERYTHING. Every book by Plato is just nothing but Socrates arguing about this, that and the other. He even made up things no one ever thought about before, just so he could argue about them. And here I was, thinking Socrates was the wisest man who ever lived and now you are telling me that he was just emotionally and mentally disordered? Wow, what a shocking piece of news. And, no, I am not putting myself in the same realm as Socrates, except insofar as we both like arguing.

[Zendo]

DG, don't put yourself at the same league as Socrates. It makes you very very shallow and confirm our believe of your mental status.

Guys.... Very predictable behavior as I post earlier. Also he needs to use famous people cover his flaw. That's sickness. No wonder why he why he have time to monitor all the comment and keep firing post and counter post.

We should feel sorry for his parents.

[usdollar]

Web bot, said in an interwiev on coast to coast on April 1st or 2nd that May 5th was a day of release. July 7nth is the next one, and November 8th 2010 is the big one. Something bad is going to happen with a magnetude bigger than 9/11. 9/11 had a build up for a few hours, this one has a build up of 4 days. It is going to happen in the USA. They speculate, since there is going to be 6 more earth quakes 8 or bigger this year that parts of California might end up under water or something to that effect. Which makes me believe that the dollar will top around November 8th on around 98 on the index, Wave 4 up of wave 5 on a huge 5 waver ending diagonal from the 1980is Wave 5 of 5 of 5 . . . down from the beginning of the last century around year 1900 will start then and fall down to 58-62 range for most part of 2011, stock market correction during this time, before the usd will shot up to around 140 on index in a matter of 2-3 years (guess on time). The ending diagonal started just North of 140 on index. My guess is that this is the perma winter, Kontratieff, completed around 2013-2015. They also say that there is a data hole starting from the beginning of 2012 to mid 2013. They speculate that sun flares might kill all electric power on earth, fry it or something to this effect.

[nspolar]

Steven, I wish I did but no I do not.

As I noted drilling and downhole is not my area, even though I have been on and done work on rigs (not a regular haunt of mine though). I know just enough to be able to follow along easily ... I do not know the details and all the detailed procedures used.

These deepwater rigs are quite amazing imo. Never been on a deep water rig either. They stated the engines were blown off the rig ... not sure but could have been on the order of 50,000 HP; 8 to 9000 HP per engine. Big babies. 40 to 50,000 gallons of diesel per day maybe, depending on what they are doing.

I will do a little searching and see if I can find some links to a downhole schematic.

Later.

ns

[DG]

"Also he needs to use famous people cover his flaw."

It wouldn't make much sense for me to use someone no one had ever heard of, would it?

[Ed]

Looks like they will cancel all stock trades from 2:40-3:00 eastern that were executed at more than 60% away from the last consilidated price...No mention of any changes to futures or option trades....If I read the memo right anyway.

[Mr. Panic]

April 4, 2000 had a similar day to today. It had even more of a tail. Next day was a medium sized down day(inside day) and then a 2 day rally and then a drop to new lows. This a blueprint of the Feb 5 low except this one is a fakeout (the 3 days following April 4 2000). Of course Feb 5 had a dragonfly doji with a positive close.....
I and a few others were looking at the similarities of the hope rally to 1987 stock chart pattern with the July 2009 drop as equivalent to May consolidation area in 1987. But the operators jammed a nice extension at the Feb lows (after a picture perfect 3peaks and a domed house pattern) eviscerating most of the remaining sensient bears. Russell 2000 and Dow Transports at the recent April high have formed the 3peaks pattern and haven't retraced the Feb to April rally to the extent of the other indices (QQQQ for one broke beneath its Feb lows intraday today) Dow Transports also made a new high in May so we can watch it for a pure monthly reversal.

[Wave Rust]

yelnick,
did you notice that we have another chance to buy the 2010 version of the 666 SPX low, deep in your "sinkhole with mayo on pump"? :)

today's nyse low
what are the odds? :)))

those electronic pit boys are just starting another breadcrumb trail for the blind traders!

wave rust

[Canadian Money]

The minimum lows predicted by the Head and Shoulders Top pataterns have both been exceeded on the SP500 and the DJIA. I wasn't expecting this to happen as fast as it did but that works too.

Anyone else thinking "extended wave" at work here?

[Roger D.]

The path of least resistance is ? on this chart...

Looking at this chart you would guess it would be some commodity in a full bloom mania, not any stock index.

This has Oh Shit written all over it.

http://www.screencast.com/users/parisgnome/folders/Default/media/43d0dd13-d174-48dd-8482-bb3029ab1fd9

Roger D.

[DG's Dad]

"DG, don't put yourself at the same league as Socrates. It makes you very very shallow and confirm our believe of your mental status.

Guys.... Very predictable behavior as I post earlier. Also he needs to use famous people cover his flaw. That's sickness. No wonder why he why he have time to monitor all the comment and keep firing post and counter post.

We should feel sorry for his parents." - Zendo

Trust me Zendo, I am VERY concerned about my Son.

I wish that he would stay off the Internet and hit the books, instead of wasting all of my money that I am spending on his tuition for College.

I am afraid that my Son is incredibly insecure, narcissistic, and has a very grandiose sense of himself, and suffers deeply from a personality disorder called NPD.

His grandiose sense of self-importance and tremendous need for admiration is not healthy. I'm sorry if it has alienated you, as well as others here.

My apologies.

[Steven_737]

www.zerohedge.com/article/day-market-almost-died-courtesy-high-frequency-trading#comments

[DG]

One of the reasons I never label anything an Impulse is because the Fib ratios and short-term structures never support such a labeling. The action of the past few days does, with one minor caveat, noted on the Hourly chart at the link.

But, I don't agree with any wave-iii of 3 down counts, so an Impulse structure at this juncture is more likely to be the start of the wave-(C) of a Flat (best Impulsive alternative would be the A of (C) of a Zigzag in Neely's Triangle count). If so, we could be in a bear market until the end of 2011. I've pitched this count to Neely and he says it's a reasonable alternative. I know vipul doesn't think the March 2009 lows will be broken barring a global catastrophe and I can respect that. I do think that the odds of a global catastrophe are non-zero, though.

http://yfrog.com/5mspyhourlymay1px

[Steven_737]

Thanks nspolar

looking foreward to the links

:)

[Steven_737]

Thanks nspolar

looking forward to the links

:)

[DG's Dad's Dad]

Kid, I told you once, I told you a thousand times, no one wants to hear your sub-moronic psychological theories. Unless you've got something to say about the market, stop embarrassing yourself by regurgitating the one semester of pop psychology you took at the community college.

[Roger D.]

Is it finished? Truly a supercycle move in MCD.

Roger D.

http://www.screencast.com/users/parisgnome/folders/Default/media/fe967fba-1ebb-4fc2-8720-8ab5a6b1c7b4

[Alan Greenspan]

"I do think that the odds of a global catastrophe are non-zero, though." - DG

Thank God.

If it weren't for the likes of DG, I just don't know if I could ever get any sleep tonight. We can all rest assured now, thanks to our beloved DG.

[DG]

"has a very grandiose sense of himself"

Yes, which is why I pretty much say that I'm just a guy trading his own account using a fairly obscure form of technical analysis. You know, because that's just so "grandiose". What planet are you on?

If I had such a "grandiose" sense of myself, why would I post on a blog that gets a few thousand hits per day? Wouldn't I seek out a bigger venue? Kenny, Daneric and Evil Speculator get more hits than here and those are primarily TA-related/E-wave-related blogs. Why not post there and get even more attention for my "grandiose sense of self"? And why wouldn't I claim to be something a bit higher up the food chain than an individual retail trader? Shouldn't I at least claim to be an Associate at a hedge fund? Jeez, even Assistant Portfolio Manager is more "grandiose".

None of my actions fit with your accusations, which is what makes them so inane. Anyone with an ounce of ability to observe reality would have seen that by now, yet you don't seem to have a clue.

[marketman]

DG,

You once posted that the I-Banks employed the smartest of "quants" and financial engineers from the likes of MIT, University of Chicago, Columbia, etc.

If that is indeed the case, then why did their trading algorythms wind-up selling stocks like Proctor & Gamble down to $39 on the Naz when it never traded any lower than $56 on the NYSE?

I mean, that's a difference in market cap of $51 BILLION for crying out loud!

If these I-Banks and their "quants" are so smart, why did they sell some stocks like Accenture (ACN) from $41 down to 0.01 cents... when the stock closed at $41.09

Would you care to explain this???

[yelnick]

Roger, try drawing the wedge off the Nov08 low not Mar09 - it should touch both prior lows and come close to the intraday low today