The Bull Stops Here

Posted: October 9th, 2010 under Misc/Admin, Predictions, Stocks.

There is so much going on this weekend with the spiral calendar that I have to resort to 3 different timeframes for the Dow, S&P 500, and Nasdaq-100 charts which are drawn for long, medium, and short term spirals respectively. I think this weekend is the prime candidate for the top from the late August low. We have had a bull move that seems as if it will go up forever, now with such wildly bullish sentiment, that on Friday, worse than expected employment numbers, indicating a floundering economy, are bullish for the market because more quantitative easing (pushing on the rope) is expected. We also have major long term spiral calendar alignments with the 12/9/1974 low (the bottom of the 1973-1974 bear market) and the 8/9/1982 low that marked the start of the huge secular bull market into the 2000 or 2007 top depending on how the waves are counted.

I’ve included a chart of Yahoo this week to illustrate the alignment now with the top of the dot com bubble. I was swing-trading Yahoo amongst other stocks on January 3rd, 2000 and the price climbed up to $500 exactly, made a few trades, and then fell back, later splitting twice, so the equivalent intraday high would be $125. That was the high point of the dot com bubble, although the broad market went up for 3 more months before also topping on March 24th, 2000. And no, I was not one of the few who bought Yahoo at $500/share!

Many other spirals align here or near here, although they are a bit spread out over about a 10-day period surrounding this weekend. I don’t rule out higher prices into the spiral alignment at the end of next week, since both Gold and The US Dollar look like they need a few more days before alignments, but I think the chances are higher for a top now – hence the headline.

I recommend clicking on each chart to see the enlarged version as browsers tend to do awful things to shrunken images, such as remove price bars entirely.

Dow

This long term chart shows the F27 and F26 alignments with the major lows of December 1974 and August 1982, as well as F22 with the January 2000 Dot Com Bubble top and F17 with the last top prior to the October 11th, 2007 all time high. See the Yahoo chart at the end of the post for a more precise example of the F22 alignment.

Spiral Calendar Turn Dates Chart For DJIA for October 8th, 2010

Spiral Calendar Turn Dates Chart For Dow Jones Industrial Average for October 8th, 2010 – click to enlarge

S&P 500

Spiral Calendar Turn Dates Chart For S&P 500 for October 8th, 2010

Spiral Calendar Turn Dates Chart For S&P 500 for October 8th, 2010 – click to enlarge

Nasdaq-100

Update 9/18/2010: the original ^NDX chart linked to the previous week’s enlarged version – this has been corrected.

Spiral Calendar Turn Dates Chart For Nasdaq-100 for October 8th, 2010

Spiral Calendar Turn Dates Chart For Nasdaq-100 for October 8th, 2010 – click to enlarge

UUP – US Dollar

Spiral Calendar Turn Dates Chart For UUP - US Dollar for October 8th, 2010

Spiral Calendar Turn Dates Chart For UUP – US Dollar for October 8th, 2010 – click to enlarge

Gold – GLD

Spiral Calendar Turn Dates Chart For Gold (GLD) for October 8th, 2010

Spiral Calendar Turn Dates Chart For Gold (GLD) for October 8th, 2010 – click to enlarge

Yahoo (YHOO)

Spiral Calendar Turn Dates Chart For Yahoo YHOO for October 8th, 2010

Spiral Calendar Turn Dates Chart For Yahoo YHOO for October 8th, 2010 – click to enlarge

New visitors: please see this post for a brief explanation of the spiral calendar.

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