Declaration of Independence

When in the course of human events, it becomes necessary for one Rock to dissolve the political and economic bands which has connected him with another, and to assume among the power of the earth, the separate and equal station to which the laws of Trading and Trading’s God entitle him, a decent respect to the opinions of mankind requires that he should declare the causes which impel him to the separation.”

I’m free. All the details aren’t in, but I’m coming home.

Ironically, the pack date starts July 4.

My son hates me. Now he has I think 45 days to poo or get off the pot. I told him he should ship his Ferrari back, and add the anti-pollution stuff required by the US. Not many folks have a right-hand-drive Ferrari in the US. But I think he likes it here. Anyway,

There’s a green board today. The news is good: Papa’s confident, Rock’s free, there’s a confirmed turnaround of the 3LB on the number of stocks trading above their 50 day MA. I put that chart here for your reference.



You may recall Rock predicted we’d see a turnaround at around 150, but we got all the way down to 80 before the turnaround. happened. I hope that’s good. I think it’s good that the 3LB shows historically that for a confirmed turnaround, the trend continues for a significant period of time. You may also recall Rock's post that the turnaround in the SPXA50 happend just before the SPY showed it's hand. Again, that happened.

In addition to the news, looking at many of my individual stocks, many have broken their downchannel to the upside. As I look back at the channels established, it seems when one stock breaks its channel and all the others don’t, then that stock is often jerked back into its previously established channel. That’s another “the trend is your friend” and “don’t fight the tape” example. Here’s one of my favorites, CENX, with the SPY just below it. It clearly shows that the SPY stays in-channel, and when CENX gets out, it gets corrected.



Now, one thing to notice is that an individual stock does not necessarily follow the herd. But I would propose that unless the herd breaks out of its channel it seems the individual cow gets jerked back to its channel should it try to deviate.

I think we have to trade this turnaround. I think it’s time to go long. The spy’s stochs are oversold, in both the daily and weekly timeframe. Take a look at history, you’ll see when this happens, the market rises. Time to free more than Rock, time to free the investment accounts and participate in the next phase.