Out of Control and Highly Emotional

Tony Cherniawski, The Practical Investor, LLC has describes current events in the markets and uses patterns to help understand them.

Category:

News & Politics

Tags:

• crash
• Stocks
• Market
• retire
• options
• bailout
• PPT
• rally
• decline
• perform
• reversal
• peak
• bearish
• bullish
• whipsaw

[vipulpatel112]

Tony, Thanks for the update they are brilliant. Do you think that after the down turn that you have predicted that we could have a tradable rally into 2009. I look forward to your next video as they are great education experience for me.

[ThePracticalInvestor]

Please don't get emotionally attached to this rally. It will end soon and very badly.

[roryduffy259]

Tony brilliant again.

1 question, you say expanding triangle normally occur at Tops not Bottoms, in other words normally a reversal pattern. Could this therefore not be a reversal pattern at the bottom indicating a multi month rally instead of a continuation pattern?

Keep up the great work.

[ThePracticalInvestor]

Rory,

This pattern is very unstable. Google the Portland Narrow Bridge. The concept of wider swings ultimately leads to its destruction.

[FTVBrian]

Love your stuff Tony but on this one video I must disagree. Only time will tell and since I'm long I hope you're right but I don't think we'll have the huge emotional swings up with no chance of entry like you think we might. I think we get a nice pullback even tomorrow to the 885 or so range and that would be a good place to get long if you're not already. Disclaimer - we are in a bear market so going long is a counter trend bet! Tight stops are highly recommended! Keep up the good work Tony!

[ThePracticalInvestor]

This pattern needs to suck in as many participants as possible. Watch ho hard it will be to take profits at the top.

[robper72]

Fantastic commentary - thank you so much

[bigajosep]

wen it comes to any patterns or indicators, wait for the confirmation period (day, minute, or whatever on the chart your looking at)

[henrymade]

One additional comment on my last post:

One clue to watch for the direction of the breakout, is if a leg reverses course before reaching a trend line it has a high probability of breaking in the opposite direction.

[henrymade]

Tony,

I am sure you are also aware of a Broadening Bottom formation as described in Bulkowski's Encyclopedia of Chart Patterns. That is also a possibility. In a broadening Bottom formation the volume will typically rise when prices rise and decline when prices decline which is what is happening here. However fundamentals definitely favor a downside breakout.

PS I think you are a superb technical analyst and thanks for sharing your expertise!

[rh7onda7]

i wish i understood charts

[khjohnson1]

Tony, Your work is the best - excellent videos, wish we could see the charts better sometimes....

should we be waiting for a break below the bottom trend line before going short, or would one be better waiting for the top of the up move that you predict and a reversal past this current low (or the next low to be established) ?

[cmacordova]

Tony, Love your videos. I'm really hoping you post this weekend based on the Friday action.

[daytripperMG]

I am long and scared..will see what G20 brings on Monday. We are on fire here in Southern Ca..It's like my own personal hell on all fronts this weekend. Is there a support on the SPX where we should abandon any thought of an upcoming rally?

[TivoJunkie43]

I was impressed with your expanding wedge call yesterday, while many of us were left scratching our heads. We closed on key support levels today, so I'm still looking for a follow though on this rally next week, and looking forward to your next video. stay nimble, and keep up the great work

[mistapikkles]

I hope your right about being long... Because I am ;-)