Eight years ago, I was on a celebratory vacation with my family in Cancun. My wife and I had sold our start-up business, Prophet.net, a couple of months before, and now that we had tidied up all the loose ends, we wanted to go have some fun and spend time with our two young children.
My wife had been prodding me for some time to start a blog, but I thought blogs were just a fad. I finally gave in, and I wrote my first post on March 29th, 2005.
We typically have bars on Fridays, but tomorrow is a holiday (and I’m going to be making a big announcement, so be sure to come on by anyway!), so we’re going to do the bar today, courtesy of Doji Girl. It turns out that a friend of hers is a performing mermaid at this bar:
Here’s some video of the aforementioned friend in action……..
MS or Morgan Stanley is looking very weak and is venerable for a significant drop lower. Over the last week and month MS has been trending downards towards previous support at 21.78. The last few days MS has chopped around this level but has not tested it again. MS ‘s price action has formed two descending triangle patterns which are all dependent on a base at 21.78.
What make this level so important is that there is NO support below this level till 20.30 or about 6% lower and that support is even weak. The strong support is at 19.15 or 12% lower or 18.50 or 15% lower. The potential support levels are also right near the price targets for the descending triangles. Short-term MS has resistance at 22.33 which could be a litmus test to see if MS will drop below its support. A fail at this resistance level shows weakness in MS and sellers are in control and move high and MS in the short-term moves upwards towards 22.64. Of course longer-term it is very possible that MS can bounce off these levels again but a longer-term descending triangle is in play and MS would need to climb 6% and get above 23.50 for it be voided.
Keep a strong eye on this stock and watch for the break, if it does break it could signal lower prices for other financial stocks which in turn will put pressure on the market. This pattern looks very smilar to what is going on in EXPE and what occurred in AAPL.
In an earlier post I pulled the old HUI 888 skeleton out of my closet. 888 (AKA the 3 Snowmen) was a target measurement based on how the chart looked in 2010. It can be liberating to take your worst call and publicize it for the world to see. They tell me that you sell a lot of newsletters that way too . All market geniuses should try it once in a while.
Kidding aside, it can be a lesson in learning from mistakes. Can this chart tell us anything of value today?
ES failed to make the top of the current channel on the last move up and formed a small triangle. That has now broken up and another test of the current high looks likely. If ES breaks above then channel resistance is now at 1566: