Thursday, October 11, 2012

This flying pig has started generating serially bearish impulse legs on the hourly chart, suggesting that something may be seriously amiss.  A further downdraft today breaching a key 'external low at 1414.50 recorded on 9/11 (se inset) would significantly compound the effect. _______ UPDATE (10:10 a.m. EDT):  Suspiciously, stocks have opened this morning with a less-than-fabulous rally.  When, on a given morning, DaBoyz are unable to squeeze 100 Dow points from spun jobs 'news', look out below.

Yet another bellwether stock -- this time IBM -- is warning that a major top may be in because of its recent failure to reach a rally target at 215.19.  For further details concerning what it will take to generate an outright bearish signal on the daily chart, check out today's tout update, which includes a fresh chart.

Yesterday crude oil impulsed above an important prior high and is now tentatively aiming for 96.47.  Since making the high late yesterday morning, the futures have pulled back substantially and traced out an elegant emerging pattern. If the pullback low (our 'C' point) of 91.02 is not revisited in the meantime, a rally back up to 92.39 would confirm the pattern and its targets of 93.74 and 96.47.  In the event of a decline below 91.02, traders should recalculate and watch for follow-through to the upside.  If and when a pattern is confirmed, use smaller patterns to trade the oil futures with a bullish bias.  (Posted by Doug “harry” McLagan)

[In the guest commentary below, Rick's Picks forum regular John Skerencak (aka John Jay) says that although the U.S. economy is but a pale shadow of its former self, its powerful military and corrupt financial system are a dominant and provocative force throughout the world.  Allied with Britain, America is reconquering the old Axis powers (plus France) so that the U.S. and U.K. can emerge from the rubble unchallenged for economic supremacy. RA] Everyone knows that a major reason for the dominant position of the USA after World War II was that Europe and Asia were left in rubble. The 8th Air Force in Europe and the 20th Air Force in the Pacific did a thorough job.  “Bomber” Harris of England pitched in, and Curtis LeMay’s B-29 fire bombings in Japan were so effective that Hiroshima and Nagasaki were spared so that the new atomic weapons would have pristine targets.  When peace arrived in 1945, the Cold War suddenly broke out, and that took Russia, East Europe, and China out of the picture.  Combined with a strong dollar that was much in demand and a matchless military, US manufacturing made the transition from war to peace and emerged stronger than ever.  This enabled the post-WWII US economic boom. Flash forward to today.   Now our manufacturing base is in ruins and the dollar is a shadow of its former self.  However, our military is still matchless, our provocateurs are global. Putting aside the issue of why and how our manufacturing and dollar were gutted, the question is...what now?  I look at the spread of financial fraud from our shores to Europe and see two “air forces” carrying the bomb loads: New York and London – a repeat from WWII.  We have teamed up once again to level Europe.  And once again,