S&P Golden Cross!! (bullish)

The golden cross (50 dma/200 dma) is a lagging indicator and it would be healthy for the market to pullback here. But damn, is this not a gorgeous chart?! If you leave out the prior ten years, this (six month) chart looks really bullish. We might be a little over extended in the short term but the 2008+ bull market seems alive and well. A violation of $125 (or ~1250 SPX) would convince me otherwise.

Sunday Rock Blog: To Love Somebody

How can you mend a broken chart? (BIDU)

Looking at BIDU's daily chart (above), all the signs of a long term reversal are there. In fact it looks rather close to the "proper" shorting point according to O'Neil (for a reversal). From a bear's perspective there's pretty much nothing to not like here. I'd be surprised if it saw higher than $135 and below $110 would be a very clear break. If it does break, the symmetric triangle targets a ~$60 move but I don't see any support on the weekly chart until about $40. People forget how many times BIDU split as its momentum carried it higher. I don't know anything about the fundamentals of BIDU (and I really don't care to) but this chart sure says something big has changed

Disclosure: I don't have any position in BIDU but am net short the market. I may buy BIDU puts next week.

Saturday Rock Blog: Nights on Broadway

Yeah, nothing like Bee Gees to start a Saturday morning. I'll get a few charts up later today and tomorrow and, maybe even some more Bee Gees to boot.