Failed Attempt at 50-Day Moving Average

The Cubes (NASDAQ: QQQQ): 4:20 AM NYC time, July 6th: Just a quick note to follow up on my June 30th posting, which noted the big rally that the mass media, IBD, and everyone else got all excited about. As noted last week, we were quite skeptical and listed the various spots at which a failure could be expected. Sure enough, and not even a week into everybody’s “new bull market” (haha, yeah right) the Cubes took their first opportunity to fall on their face, with a gap down failure at the 50-day EMA and close near the low and below the 20-day EMA. Folks, in case anyone didn’t notice…

…we have been in a bull phase since October 2002. That’s over now. We are likely in a bear phase. People will be in denial for a while. Then they will notice. And panic.

Reminder: In bear phases the rallies are dramatic, for a moment. Kind of like the overheated poodle I read about recently: How Gopal Mehta Got Paid, Almost Got Laid, and Got Trained. Enjoy. Cheers!

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