Tuesday, April 15, 2014

COMPQ Nasdaq Composite Daily Chart Nears the 200-Day MA for First Time in 14 Months Channel Failure

The COMPQ teases near the critical 200-day MA that has not been touched for 14 months. This behavior is extremely uncharacteristic for the market going that long without touching the 200-day. Even the drops through the 200-day MA in the back half of 2012 are paltry that never allowed price to truly clear. A mean reversion always occurs just as winter follows summer and summer follows winter. The COMPQ has fallen out of the multi-month upward-sloping channel. The intraday top occurred on 3/6/14 at 4371.71. An official market correction is -10% so that would be a drop of 437 points off the top and place the COMPQ at 3934.54 so pay attention to this number going forward. The February low occurred on 2/5/14 at 3968.19 which has now failed.

The central banker easy money pumped markets higher all the way through 2013. Companies use cash on hand and the Fed's low rates to buyback stock and pump the stock price higher to make the wealthy wealthier. The idea is for companies to take the easy money terms and invest in capital equipment and jobs to create a robust recovery but instead CEO's say forget that and prefer to pump the stock price higher since they receive bigger bonuses. The funny part is the common citizen is the sucka paying for the rich to become richer with their tax money. At the same time these middle class and poor folks cannot find jobs and years down the road when the inflation and hyperinflation hits they will be screwed further. You have to love it. If you are wealthy and own stocks you are swimming in luxury buying high-priced property, art, collectibles and other fun things while laughing at the idiot masses that foot the bill. The Fed is collusive to this behavior since they are rewarded for their money printing. Ex-Chairman Bernanke now receives $250K per 45-minute speech to reward him for pumping the stock market the last few years in collusion with the large banks and influential top wealthy 1% of America.

Tech and small caps lead the broader market. Watch the 200-day MA at 3942-3944 like a hawk going forward. The COMPQ is at 3964 twenty points above hanging on to the bullish side. Serious market trouble begins when the COMPQ collapses below the 200-day MA. This information is for educational and entertainment purposes only. Do not invest based on anything you read or view here. Consult your financial advisor before making any investment decision.

Note Added 1:10 PM: The COMPQ is 3956.11 with a LOD at 3946.03 teasing ever closer to the 200-day MA at 3942.12 and -10% official correction number at 3934.54.

Note Added 2:35 PM: Markets recover big intraday over the last hour the Nasdaq now above 4010 after printing the LOD at 3946.03. Markets are very erratic and unstable.

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