The Cubes (NASDAQ: QQQQ): 6:55 AM NYC time, July 14: As noted on June 28th, the rally failed. Two trading days later we got that big white candle circled on the chart and people like Investor’s Business Daily said it was a follow through day and a new rally was underway. Meanwhile, back at Cubetrader.com, we pointed out the flaws in “rally.” The actual failure (the circled red candle on the chart) was noted here, a good week or two before IBD even trying to cover its ass and…
…say “not all follow throughs signal a new bull market.” In case someone forgot to tell them, here’s reminder, which is actually shocking to have to say, but apparently necessary: You can’t have an effin’ new bull market until after you’ve had a new bear market. It goes like this: bull market, bear market, bull market, bear market. And another message to the IBD romper room writers, bear markets last longer than three months. Ok, got that off my chest. Have a great weekend. Cheers!
PS: Look for a short-term rally attempt soon, after the people that bought the sucker’s rally get forced out. Plus, oil and Israel, Iran, G8 fear will eventually subside. As per usual in bear markets, look for the rally to do this: fast, furious, fail, repeat. Until a true bottom is put in down the road a bit further.
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