Claiming Ownership of Pending Disaster ~ The Risk Averse Alert

Tuesday, December 29, 2009

Claiming Ownership of Pending Disaster

Wonder in prose considering a like-from-like possibility noted in green and red below...

The eagle shot on high still soars among swarming support
Holding health's appearance even to a 1990 likeness
While power fades imagination to wonder how
Such greater supporting swarms could bring history's repeat
Although, right there, undeniable evidence meets the eye
Indeed, showing the supporting swarm has been grown before
And so, with nothing then or now set in stone
Dare I say the swarm couldn't grow still more?

(The "swarm" is seen in the volume of shares exchanged.)

I read the top 5% of households own no less than 84% of U.S. equity...

What small interest(!) can move things was my first thought. Next was what sizable interest can hold things up. And, likewise, what concentrated interest are the largest sharks.

Hence my continued interest in The Great NASDAQ Head and Shoulders Top (noted by the blue line drawn above) ... made all the more curious by RSI's position in buy- and sell-side balance at this very moment when, as is typical, NASDAQ has retraced back to the "neckline" following last October's high volume break below it.

Unless proven otherwise the Great NASDAQ head and shoulders top is mine. I own it. So, just remember this when $COMPQ trades at 300, the minimal price objective suggested by this head and shoulders top whose form most critically is substantiated by accompanying volume during its formation.

(And may posterity note for the record my prudence not claiming ownership until such time as a normal reaction to the neckline was nearly completed! Yet, too, were recovery to continue and carry $COMPQ above the neckline, then my "nothing set in stone" message above will require further consideration, let alone my bearish position in UltraShort ETFs.)

Fast Money
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© The Risk Averse Alert — Advocating a patient, disciplined approach to stock market investing. Overriding objective is limiting financial risk. Minimizing investment capital loss is a priority.

Analysis centers on the stock market's path of least resistance. Long-term, this drives a simple strategy for safely investing a 401(k) for maximum profit. Intermediate-term, investing with stock index tracking-ETFs (both their long and short varieties) is advanced. Short-term, stock index options occasionally offer extraordinary profit opportunities when the stock market is moving along its projected path.

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