Monday, May 14, 2012

Good news for chartists

In Friday's Quick Takes Pro report, I wrote this seemingly benign phrase. 

"However, it does show that the charts are really starting to telegraph big moves again."

Looking at it again this morning as I was preparing today's missive, it hit me that this was a bit more profound than I thought. QE is seemingly out of the way - at least until the Fed is compelling to "do something," misguided as it is.  With QE gone the market is healing itself. Unfortunately, healing brings pain first.

Think of it like exercise. You know your first weekend out leaves you sore and limping Monday morning. But after a few weeks, you bounce back stronger than you were before. 

So, fellow technical analysts, the world may be safe to ply our trade again.   The word "may" is key.

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