Phil's Stock Market Blog

There's a certain guy I work with, let's call him "DM". No matter what I say, he always knows better. You know the type. Back on Feb. 5th I told him that we'd had a buy signal on the market. And of course (predictably) he scoffed, said something about how much money he was making on the short side. Proclaimed it "was" heading down, as if only a fool would think otherwise. This was supposed to be a result of something in the news. I think it was the financial crisis in Greece.

So DM, how are those shorts are working out lately? In retrospect we see that the buy signal caught the exact low, on the exact day. It was a perfect signal, based purely on technical action. It had nothing to do with events in the news. Here's the chart, the signal is marked in blue: