[newsletterchapter2 title=”GENERAL MARKET COMMENTS”] The BABA Reversal was the Tell of an interim High, as I allowed. The Viral Cascade of negatives did culminate in a Capitulation on 10/15 near the “0%” Bullish sentiment reading. Talking Heads were in shock and awe as they do not know the underlying reality of the Market Psyche. It was a classic lawful Correction.
As I noted: “It was a great trade which is now over.” An expected rebound continues. Markets are ruled by esoteric noumenal indicants rather than phenomenal fundamental tales. Stocks have become fun again. Enjoy.
[/newsletterchapter2][newsletterchapter2 title=”MARKET TIMING FACTORS”] The Black Hole produced extreme volatility and some palpable panic. I explained: “That unique indicant often produces a price vacuum synchronistic with a Capitulation.” The quick Recovery from the Canadian shootings seems to infer a real Robust vibration. It is possible that generic Recovery tries may even last into Month end. Another Low is due nearer to Mid-November. Setbacks into there may set up seasonal strength into year end.
[/newsletterchapter2] [newsletterchapter2 title=”MARKETS AS METAPHOR”] Financial Culture has is really tying to regain some Ebullience. Pure Panic never lasts long. The Market Mind is still jumpy.
[/newsletterchapter2] [newsletterchapter2 title=”RELATED MARKETS”] Gold is to going sideways. Treasuries are starting to get “hurt” again. Note Bund weakness. Energy shares Capitulated as I expected.
[/newsletterchapter2][newsletterchapter2 title=”SENTIMENT INTERPRETATION”] The best Sentiment interpretation remains that the BABA High was of interim degree. Exceptional Low sentiment produced a Capitulation near the ideal Black Hole. The “0%” Low has been confirmed. Stocks have been Recovering as I allowed and even become surprisingly robust. Yesterdays reversal on the 92% reading has now been reversed back up! This behavior may infer more Bidding.
[/newsletterchapter2] [newsletterchapter2 title=”THE TECHNICAL VIEW”] The SPX had its first set back off the lows right in the middle of the 1935-1945 resistance zone. It was quick and now it is back above and testing the 2nd resistance zone between 1955-1965. I wouldn’t be suprised to see another round of selling from these area-but it may be quick as well.. A test of the 19120-1910 area makes sense.