My roommate runs around all day saying things like, “I’ve earned my stripes, cuz!” He talks about the “enemy” and how I shouldn’t associate with them, he also talks a lot about what defines manliness . Nobody is sure how he has earned his stripes or who the enemy is, but that is why we call him the Colonel.
I was excited to see the new military stars in the comment section. Like the colonel; I feel “I’ve earned my stripes!” here, but will be proud to have the status of Private Goodwin if I’m demoted to one star.
The new ranking system also got me thinking about how I used to visit my grandpa and his partner Dennis as a child. Dennis was an avid WWII buff, and used to tell me all sorts of fascinating war stories. One he spoke of was how the secret Nazi Rainbow Warrior Unit would quietly infiltrate European counties to weaken the men of an opposing army before blitzkrieging the whole place.
Dennis said that the reason the Rainbow Warriors were successful was because their leaders knew they had a good group of men behind them, ready to bring it up the rear when the hot action started.
This chart then came to mind, Worden’s T2100 Advancing/Declining line which I check at least once a week. It is one reason I have been careful on the short side the past couple months. Often it seems that when a divergence occurs with the A/D line and the market, the A/D line wins.
Analogies have been discussed lately, so here is another one related to the military and A/D line. Trouble is afoot when the Colonels are leading (SP500 moving up), and the warriors are not following (A/D line is falling). However; this chart shows that the Colonels have been basing sideways, while the warriors are gathering behind them with their broadswords at attention. This chart seems to be telling me to buy the dips, and I could see Tim's analogy fitting with this. Another correction down, then significant move up.
I’m ready for action, and off to go polish my broadsword. Good luck everyone!
