Showing posts with label yang. Show all posts
Showing posts with label yang. Show all posts

Tuesday, January 10, 2012

Before The Bell-CHINA Intervention Bernanke Style YINN and YANG Jan 10th

In order for stocks to be in a bull market, Central Banks have to step in and force the people to purchase shares buy destroying all other investment avenues. The Ponzi system is so roted with debt and fraud, natural market mean revisions must be avoided at all cost. Today, according to ZeroHedge report, CHINA bankers have come out swinging:

Bloomberg report on what is about to take place in China: "China’s stocks regulator will “actively” push pension and housing funds to begin investing in capital markets, and encourage long-term investors such as insurers and corporate pension plans to buy more shares."

This first chart is YANG, etf short China. I have circled a clear DOJI pattern; which in normal circumstance being at the bottom of the BBands, would begin to peak my buy interest. DOJI is defined as:
Doji is a particular signal showing indecision about the direction of the market and it represents a tug of war between buyers and sellers.

So, in other words, what was a strong downtrend, found an equal footing between buyers and sellers, or price discovery. But after today's CHINA news, forcing retirement funds to buy over leveraged, worthless stocks, it doesn't take to much guess work to see which way this will be resolved.

YINN is the bull etf for China. The last two candles formed a Bullish Homing Piegon, defined as:
The Bullish Homing Pigeon Pattern is a signal of disparity. In a market characterized by downtrend, we first see heavy selling reflected by the long, black real body of the first day. However small body of second day points out to diminished power and enthusiasm of the sellers thus suggesting a trend reversal.

In this case, the "diminished power and enthusiasm of sellers" is being forced by Ponzi scheming Bankers who are intent on beating the house; the house being the natural order of markets.


Conclusion: CHINA has long been building bridges to nowhere, lavish cities with no residents, and the largest shopping malls in the world with no shoppers. Over the last year however, the gig was finally up and the natural order of market mean revision has begun.

Just like with the US Fed QE and Twist Interventions, in the short run, some upside easy money can be made. Just don't stick around the after party celebration too long.

Tim Kathlina

Tuesday, December 6, 2011

Before the Bell Update Dec 6th

We are not able to look at America and Europe for direction; supposed free nation capitalist economies. No you see, these markets have been hi-jacked by banks and corrupt governments. Instead, if we want to see capitalism in action, we have to look to the communist.
Looking at the etf YANG, which tracks Asia from a bearish point of view, it appears some major economic headwinds are on the horizon. Funny, all we used to hear from the sell side used car salesman, otherwise known as Wall St, was how Asia was going to save our economy. Not hearing that so much anymore. Wonder why???
Clearly YANG has completed its 3 year downtrend and is now on the 4th minor pullback of a 5 wave up move to complete wave 1 of what will be 5 waves to new all time highs.
The collapse is coming my friends, Americans know it. That's why the best selling Black Friday item, was not LCD TVs, or Xbox; nope, it was guns and ammo.

Tim Kathlina

Tuesday, November 8, 2011

November 8th After the Bell Trade Set Ups

The CHINA 2 verses 10 year curves are beginning to invert, pointing to a sustained and protracted economic recession in CHINA.
Looking at the CHINA Direxion 3xs bear etf: symbol YANG. We show the move to be in a confirmed uptrend as noted by CCI(30). Even though today was down, the CCI(5) moved back above the 100 line from an oversold position. Also note the Bullish (Doji) Star Pattern from today which indicates the downward energy is dissipating, The megaphone upward move suggest a recovery to challenge the 1st wave highs.
The price of oil has made and impressive 30% ramp off the bottom in the month of October. The oil short etf SCO on the weekly chart has now moved under 2 on the daily RSI(2) trade indicator. Historically, we can expect this trade to reverse sharply and outperform over the next week or more. Stocks move in 5s and 0s time frames; expect SCO to hold $40 and move higher. A severe drop in oil will also most likely indicate a top in the broader DOW and S&P indexes for some time to come.

Gold miners etf NUGT is showing multiple signs of exhaustion. Notice today we have a bearish Harami: The Bearish Harami Pattern is a sign of a disparity. “Harami” is an old Japanese word for “pregnant”. The long white candlestick is “the mother” and the small candlestick is “the baby”. This shows the bulls’ upward drive has weakened and now a trend reversal is possible. False breakouts are common patterns; notice the false break in July. CCI (30) indicates an extreme deviation from the standard moving pattern. Short below the upper black line, expect the miners to fall back into the defined trend range.