You have seasonality on your side. There
should be a rally into Thanksgiving and then the Santa Claus rally. What
it could be based upon is that sales are not as bad as projected. They are
predicting the worst numbers in decades and if they don't occur you could get a
great bear market rally. Another case of buy the rumor and sell
into the news.
The old norms aren't the norm any more.
The oscillator used to max out at 100 and now the top was 300. I think
that a lot of things that used to be touchstones are no longer
relevant. They can be an indication, but no longer something to act
upon. In the 70s and early 80s the VIX ranged between 12 and 18 now we
are looking at numbers in the 50s and 60s.
Of course if you were raised in the depression
the price for a loaf of bread doesn't make any sense either.
as you can see, when market made the
low in October, the osc made a higher hi
currently at 150 and still showing
strength
comments welcome
Ben
p,s
the volume and price osc also
show bullish divergence?
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