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Wednesday, September 16, 2009

Panic Buying

He makes a very good point and explains pretty much what I have been thinking and saying. It would explain the double consecutive gap ups that are occuring on quite a few stocks.

Money managers are under tremendous pressure to "beat" the market. Quarterly results are coming. The contrarian in me thinks it will fall apart sooner than people expect. Maybe no wave [v] up just this thrust move maybe.

Kind of like the missing 5th wave at the March lows huh?

Basically panic buying may be occurring. Its all very funny actually. It also suggests that there will be no orderly "rollover" from the top of P2 which I also have suggested.

EWI showed how the 1930 rally sported no divergences really on some basic indicators like RSI. The rally peaked on the indicator peak.

The breaking of the underside rising trendline that exists on just about every index and stock will mark a sell panic perhaps.

Or maybe none of it happens. But things are getting zany and emotions are getting tempered. And P2 is a special kind of wave.

It should have a special kind of ending.
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