May 26

10:10 a.m. Cycle turned ?? We need to break above 905 to confirm positively.
We could see a very steep climb upto the 50W MA if so. This market is teaching the bears a lesson - not to be trigger happy.

12:40 p.m. The bulls break 905. Now we need to hold it for the close. Cycle turn indeed seems to be working, so also our TNA position (long from 25.3), which we will ride with a trailing stop of 1%. Thus far, it has been a straight line so no worries.

2:30 p.m Out of tna at 26.75 for a 4% gain. We have to leave for the day, but the theme remains "Don't be a heroic bear". Wait for other bears to get slaughtered.

5:10 p.m Our cycles and seasonality work told us to keep an eye out for a blistering rally. That is exactly what we got. More importantly, the 905 area is now support again. We visited quite a few trading blogs, sites and message boards over the weekend. There was almost a unanimous HnS claim on bellwether stocks like AMZN.
The winner in this bout of technicals was clearly sentiment, seasonality and cycles.

Yes, the market was overbought, yes there were bearish divergences on the horizon, but until we get a weekly close on any of the indices under the 5Weekly moving average, the weekly trend is up and we should continue looking for higher prices. Our next cycle high date is on june 10th(+/-). For astro traders, there is also a bradley turn window in the first week of june. Some stocks like RMBS, TIE, AXYS etc. are shooting out of what looks like a bull flag. Does the weekly SPY itself look like a bull flag?? A case can be definitely be made. Will GS make it to 160? We think it is possible before our next turn date.