I analyze macroeconomic issues from a fundamental perspective, and I analyze market behavior from a technical perspective. Original macroeconomic analysis can be found here and both macro analysis and commentary can be found on my Caps blog. If you like or appreciate my analysis, please add yourself to my Following List

Thursday, October 29, 2009

Reinstating the Tin Foil Hat Zone

Welcome to the Reinstatement of binv's Tin Foil Hat Zone :) (I know Jimmy will be very happy to see this) :)

Here is my crazy count for today

Addition 5:48pm

Per the conversation with Alphahorn below, I want to share why I am looking at this crazy count:

The reason why I am thinking about this crazy count is because the 1-2-3-4 (today's rally being the 4) that so many people are counting .... well, 4 goes into 1 on the Dow. And I still subscribe to the theory that the best count is the one that works on all 5 major indices.

So with the Russell breaking the Oct 2 low (which is *huge* reason why I am sticking with the bearish count), and the NDX making a higher high on Monday vs. last Friday's high, and the bearish breadth at the peak yesterday (9:1 D/A), and with the Dow today going into the wave 1 down from last week. ..... a standard impulse count doesn't cut it, nor does it explain the strength of today.

But a leading diagonal really starts to look very compelling. We got a nice reversal up that matches up with a reaction from falling wedge. But the counts in the wedge are **impulsive**, not corrective. Which has leading diagonal written all over it.

.... at least that all makes sense if you are crazy like me :)

Thank You for visiting binv's Tin Foil Hat Zone
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