Tuesday, December 6, 2011

Bottom Bottom Where Are You?

Was looking at the charts and also my previous post around bottom formation. Was also catching up on various views on where the bottom could be and whether the current rally is sustainable.

Dont know why, but reading up on all the hopes for a bottom and for a final breakout, I started humming “ twinkle twinkle major bottom, how I wonder where you are…..”

So here’re my latest analysis as a poem. Poetry is really not my forte, so request all poetically oriented folks to forgive transgressions of literary rules, if any.

Twinkle twinkle major bottom
How I wonder where you are
You seem so near, yet so far
You come in reach, then fall afar

Head and shoulder in October
With a breakout just before November
Bought smiles to bullish fellows
Went away, when you made lower lows

Bullish divergences in charts now
Will there be a breakout now?
Will there be a bottom now ?
Or will you do what you did ago,
Go on to make a lower low

The wise men say -Wait wait wait
Try not to catch a falling blade
You'll know a bottom -  only later in the day
When sun has broken through the ray

You seem so near ,yet so far
You come in reach, then fall afar


(Charts below show the bullish divergences between price and MACD in daily and weekly charts)