Quote:
Originally Posted by
mpr 
I'm curious as to how you guys came up with the 1333 level?
For me it wasn't a product of any science or mental labor... but there are some cross-references, the biggest being 2x '09 low for cash index. I'm starting to feel it is also a bit of a sweet spot for the market, a level below which bears could find a real grip on the action. I am also interested in your 1316-1320 levels, a guy I interact with somewhere else has two or three proprietary market timers he has used with very good results over the last several years. He has pinpointed that range in cash index as his max downside range for this push, and he has already scaled in long, I think he is tier two long of four possible tiers. It usually seems wise to give extra consideration to levels that are discovered through completely different methodologies and disparate sources.
These bleeds that have happened recently have not been panicked, or especially high-volume. This trader I referenced is extremely confident futures are being marked down so syndicate money can be long from cheaper, for a good push up. In my history of following him, his timers had been fooled, but their track record is well over 50% accurate at similar junctures. He has not talked upside objective as his timers do the speaking but I'm assuming his strategy has 1400-1440 in its sights. The easiest way to meld all of these events together would be bad Euro debt news triggering the panic sell to 131x levels so we get our flush, then a reversal on good news morphing into a "we are the US and don't care bout the rest of you" rally. I'm not predicting that this is what will happen, just trying to fit a square peg into a round-looking hole. Who knows, maybe the hole is square after all.
Venom's fill in the blank answer had me LMFAO, well done.
