Ian Woodward's Investing Blog

Stock Market: Floodgates Opened Wide!

After a week of turmoil both up and down, today’s action has given control to the Bears, but with the craziness of the Market we shall see where we go next:

Party Picture

Yes. most of you understand that Emotion Rules the Market, and the pictures I use to define Greed on the one hand and Fear on the other, but as you well know when the floodgates open to the downside, your Nest Egg gets killed:

Party Emotion

It goes without saying that I have built much of my process based on John Bollinger, and it didn’t take me long to see that the big pay dirt is at the Extremes of Fear and Greed.  We know how to perform in between, but the stomachs come into play at the extremes , and I hope I help you most at such extremes:

Party Normal

A year ago, John Bollinger reminded me at times like this when markets get Overbought or Oversold they can remain that way for long periods of time before they break or rise again, and he calls them Fat Tails…so I fed him this as my version with tongue in cheek!

Party Tails

We have not seen a Market like this and short term Players can enjoy the volatility of a totally news-driven Market:

Party Indexes

Let me show you the Explosive Growth we saw in the Indexes just seven days ago and then what transpired since:

Party Buckets Up

Just focus on the columns I have highlighted to get the pulse of the Market in two minutes.  Here is Five days later:

Party Buckets Dn

The very next day, the Indexes bounced back and things were looking better for the rally continuing:

Party Buckets Up2

…And here we are one day later and completely down in the Doldrums again:

Party Buckets Dn2

Net-net, this market is in total oscillation and wildly so…results not seen in 13 Years of History;  this speaks volumes:

Party Pat

…And here is Grandma’s Pies just back to two days ago:

Party Pies

…And finally, here is the spaghetti of the A+B vs. D+E scenario…back to Stalemate:

Party Acc

Keep your Powder Dry and the Best of Luck,


Copyright © 2007-2010 Ian Woodward
Disclaimer: Commentaries on this Blog are not to be construed as recommendations to buy or sell the market and/or specific securites. The consumer of the information is responsible for their own investment decisions.