It has been exactly 14 years to the day, interestingly enough; when the NASDAQ had an intraday drop of over -658 points in the first 2 hours of trading, only to bounce back and close only slightly lower on the day. I remember it like yesterday, only because it was so macabre watching the then darlings of growth follow each other over the cliff in single file. JDSU, CMGI, CMTN, SDLI…the list was a myriad of dot com lottery tickets. I am getting all misty eyed here as I recall the 1 day short opportunities.
And so here I sit 14 years later (and that is two seven year cycles for those of you good at math) on the same date, seeing another colossal meltdown in the NAZ and feeling like I have seen this movie before. And I think I remember how it ended… Lets just go to the charts here for April 4th 2014:
- COMPQX – home of the stuff dreams are made of – has violated the 100 SMA once and for all, on increasing volume, increasing average true range, and an outflow of MoneyStream. I will post a video on this shortly.
- NASDAQ 100 – Gotta have all of them – DITTO! And again requires some video dialogue.
- DOW 30 – Most obsolete index in the universe – Outside Reversal Candle on increasing volume -Chart video to be published shortly
- S&P 500 – Refusing to roll over quietly – DITTO! Another Outside Reversal Candle
- Russell 2000 – Led on the way up, but on the way down? A close on the lows and right on it’s 100 SMA…and yet another video of mine about to be spawned.
This is your weekend homework, traders. Read em and weep -AND- “smoke em if ya got em…” And wake the fuck up!