Thursday, January 13, 2005


I started shorting the QQQQ's yesterday, but after hearing the news about AAPL last night I was starting to wonder if I was too soon. The market is starting to roll over right now and the activity seems very high. Lots of blinking yellow lights signaling new intra-day lows being made. This market could crack wide open soon; these sell-offs are always on higher volume lately, no matter what time-frame you look at. The guy on the "Market Clues" blog link shown on the right doesn't seem to agree with my assessment though. He seems to be describing a complete head and shoulders top on the nasdaq in the next couple of weeks and then telling us why it would be even more bullish than December's rally because of some elliot wave theories. Go figure. If he's wrong and I'm right to be bearish right now then I will probably take that blog off of my links. I never liked that elliot wave stuff anyway. It seems WAY too subjective and gives other more legit TA a bad rep.


At 1:09 PM, Blogger Chris Perruna said...

Hey Jon,
When I bought Escalon last February, an elliott wave user told me that I was dead wrong after my post on another forum and said that total upside was $11 at most and then the stock would tank when it reached this point. We all know what happened to ESMC, it went on to hit a high above $27 (higher than my exit) and then came crashing down, many months after his initial wave theory. Maybe he was right about the crash but he was dead wrong about up-side potential. He said $11, I sold almost 2x's that amount and saw it triple from $9. I don't know much about the wave theory but I do know basic technicals work very well!


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