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The Anals of Stock ProctologyPublished 5 times
per week by the American Academy of Stock Proctology and Available by annual subscription for $1929 or free Welcome to the The Anals of Stock Proctology, the new scholarly journal of the American Academy of Stock Proctology, edited by the world famous founder of the study of Stock Proctology, Dr. Stepan N. Stool PHandD. The Anals replaces Capitalstool's nightly and weekend updates of the major stock indexes. Now you can get your nightly stock proctology report in one convenient, uncluttered page, right here. The Anals will be available for free, for the immediate future. Soon, however, all advertising and solicitation will be removed from the Anals, and access to the Anals will be restricted to subscribers. As a result of the clean format, the Anals will be readily printable for reading in locations more appropriate to such endeavors, such as, uh, the kitchen table. Yes. The remainder of the site, including The Stool Pigeons Wire, IntradayStool, Stoolhoo, and Stoolchat, will continue to be free. You will never have to pay for access to these pages. Previous contributors to Capitalstool will receive a free subscription period. Prior to going to a subscription format, the voluntary pay buttons will remain. So feel free to contribute now. Your contribution will result in a full credit toward your future subscription. Several of you have already contributed in excess of $500, and you will receive a free lifetime subscription. Contributors of written content or illustrations will also receive free subscriptions. That includes all who achieve the level of Professor of Stock Proctology on the Stool Pigeons Wire. Initial subscription rates will be $19.29 quarterly or $74 per year, in honor of the great bear markets of the 20th century. Actually, 1937 was pretty bad too, so the Academy may offer a half year subscription for $37. Latecomers will be able to get a one time, one month trial for, what else? $6.66. As always I thank you for your support, and I look forward to many prosperous years working together with you. Happy New Year to you and to Bears the world over! Dr. Stepan N. Stool December 30, 2001
A casual investor watching the nightly news saw that today was just another uneventful, but slightly lower day for stocks. The Nas was down 10, the SPX down 5, and the Dow lost 56. No big deal. Yeah, right! In one of the most bone-rattling, teeth jarring days bears have suffered yet, insult piled upon injury in the early going as the market zoomed out of the gate, and kept going for all too long. It seemed like it would never end. At one point the Nas hit 2099, up almost 45 points. The SPX hit 1174, up 15. The Dow was up 120 at one point. There was no reason for it. It just was. Then as suddenly as it materialized, it stopped. And after trying for a few hours to breach the early high, buyers withdrew, and over the waterfall they went. In the end it was an obvious reversal day. Bears went from suicidal impulse, to relief, then to outright chest thumping glee. (We should know better, but we don't.) The happiest ones were those shorting the crap out of this market around mid-day. They were there, and I can vouch for them.
SPX Charts The VIX continues to show supreme complacency, closing at 23. It remains within the distribution band indicator. This is the longest period of distribution since the top in 2000. Yet momentum is absolutely pathetic. The huge negative divergences you see between the price action and the mo indicators are a sign of a sick market whose whose props are rotting. The chart also shows clearly the potential for the big, I mean really big, Whopsaw. Last week the portfolio sphincters busted their index out above the long term downtrend line. As every charthead worth his salt knows, they also broke through the 200 day moving average. As a result, Investors Intelligence today reported the lowest level of bearish sentiment, 22.7%, in five years. 77.3% of the advisory service poodits and talking backsides have stuck their money in this stinking, rotten, pus-filled abscess of a market. Some time in the next day or three the SPX is going to drop below that trendline and that moving average, and the big Whopsaw will be complete.
The market is insanely overbought on an intermediate basis, based on the 6 month cycle ozzie, which has done a double pump, massacring bears in the process. The 10-13 has been in a weak up phase for almost 4 weeks now. The short term cycle ozzie has flashed a strong sell from a killer double pump. A downturn in the 10-13 here, from weak levels, could portend the market going into crash mode.
Check out the perfect 38.2% fibbing nacho retrenchment below. As everyone knows, fibbing nacho numbers do not lie. The measurement is taken from the high close and the low close. The chart also shows a good picture of the pending Whopsaw. A break below 1145, and we is in the driver's seat.
Nasdaq Charts Same story on the Nas. Intermediate mo has been weakening for a month as the index eked out new highs. This is distribution. Major and intermediate cycle channels have been broken to the upside, convincing all but us diehards that the time to go long has arrived. The short cycle indicator has flashed a sell signal, which suggests that the index is about to fall back within the cycle channels, and the big whopsaw has been set up by the index breaking out intraday above the early December high, several times.
Here's another picture of the whopsaw, and the guillotine about to fall. Don't worry about the 10-13 turning up. It did the same thing in early July. It just means there will be plenty of dipshit buyers and a little bounce or two to get short with over the next couple of weeks.
Today Mohel Lynch (Oy, do we got tips for you) announced a little layoff of 9,000 of its best and brightest borkers. This is a bull market? No, just another blowoff. But the chart sure looks good. Every chartist in the universe just got sucked in on that reverse head and shoulders breakout. How much you wanna bet that turns into another whopsaw in about three days? It'll be fun to see.
Golden Stool Here's a chart that's easy to love. It's the Gold Bugs Index.
Nasdaq Cycle Conditions as of 1/9/02
L-Low,
H-High SPX Cycle Conditions as of 1/9/02
See you in Intraday Stool. Archive |
![[Most Recent XAU from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_nasdaq_en_2.gif)
![[Most Recent XAU from www.kitco.com]](http://www.weblinks247.com/indexes/idx24_sp500_en_2.gif)
The biggest sucker play was
the Nasdaq's breakout to new highs. As all stoolies know, before the market
makers take a market down, they first stage an upside breakout to clear
the books of buy stops, and squeeze the shorts out of their, well...,
their shorts. The mm's gladly take those shorts off the bears by putting
on shorts of their own. Once that action is done, there's nobody left to
buy. All the suckers have bought, all the shorts have been squeezed,
strangled, and dumped in a trash filled marsh in Bayonne, New Jersey. The
mm's then pull their bids, and prices start to fall. This is a classic
whipsaw top. Only today, through a luck typographical accident, we came up
with a new name for it. It is now known as the Whopsaw, as in I gonna whop
youse in da head, and den I gonna saw youse's legs off. On the
hourly chart, all stoolies know this as the Finger Formation, as in,
"Yo, d'you jus gimme da finger?!"
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