2. What might hold the drop back for 24h is the AAPL effect as this stock delivers earnings tomorrow and I have no doubt it will be a blow away number easily at 10 and above but it will rather deliver a sell the news situation. another factor is the Joe Grainville for a top based on the pathetic volume mostly ( the 23rd Jan has delivered a few top in history) and we made yesterday a new high with the lowest NYSE volume in 9 years. Todays New Moon is in a very challenging T-Square with Jupiter and Saturn which will be enforced by tomorrows Mars retrogade. The short side should deliver by all odds – its a bit like counting cards in Black Jack this time you can go in on bigger scale and some people seem to do so as the ISE shows very high put buying around 50 right now which is an extreme number. Apple gives plenty of sell signals on a tech basis although he stock is not expensive at all. Stil it needs to make a down-wave to clear the way. VIX is one count away from completing a daily 13 count sequential but in a weekly setup 9 week always a time there trends can and mostly do change either short term or for good. the VXO 8 VOL on the oex100 has already made full counts on daily basis. The orst scenario in my book is rather due on 7th Feb with Saturn going retrogade at a very crucial spot but that is rather wave 3 down material. For now we want the SPX to drop to the 1240-50 level.
Calamity Joe Is Back – Last week, we wrote that various cycles and technicians were pointing to a possible market top, on or about January 23rd. The “causes” ranged from sophisticated oscillators to the new moon to astrological confluences. Yesterday, one more “cause” was added and it came from a somewhat controversial Wall Street legend – Joe Granville. Here’s a bit from a Bloomberg review of Mr. G’s call:
Joseph Granville, whose “sell everything” call in 1981 sparked a decline in U.S. stocks, said the Dow Jones Industrial Average (INDU) will drop toward 8,000 this year because of waning momentum and volume.
“Volume precedes prices,” Granville, 88, a technical analyst who has been publishing the Granville Market Letter from Kansas City, Missouri for about 50 years, said in an interview on “Street Smart” on Bloomberg Television. “You are seeing much lower volume. That tells you that prices are going to go much lower, much lower than most people think possible and very few people have projected.”