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The cool thing about saying things like that is it can go both ways
win win. I think we already know that his short term predictions are flawed, I would stick to his macro analysis only.
In the short term analysis Armstrong always identify some criteria which is the precondition of the projected event. He never says that "x" or "y" event will definitely happen. The projected events always depend on some predefined conditions. For that reason his short terms stock market analysis don't give much starting points to day traders like myself. I agree, his macro analysis is probably the most useful.
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On the slingshot, the market goes up and the ones being trapped are the shorts, they are losing money. Longs can not be trapped on the slingshot as they would gain money. So, first point, shorts being trapped and hence they lose money.
No, he definitely doesn't say that. Bull traps by definition trap the longs. If the slingshot is up, then the traps obviously can only catch the longs. The shorts will be squeezed out by triggering their stop losses. I think you completely misunderstand this, but thanks anyway making effort to decipher Armstrong. :-))
The slingshot is when stocks fall over and everyone predicts that this is 'the big one' and piles in short.
Normally Armstrong means up when he refers to the slingshot move. I would imagine a slingshot movement is a motion that slowly pulling back, stretching back (i.e. going down) and then an impulsive movement to up. However, I fully understand why you interpret it differently - I am confused by his short term market terminologies as well from time to time.
I believe, I deciphered what he says. The main reason is why I was confused because Armstrong was talking about trap of the shorts not long time ago in the context of a slingshot move when the market goes down first prior to the slingshot (at the time he spelled out that the trap will be related to shorts, and therefore that was very clear). But this time I think he refers to trapping the longs. So here we go day traders, here is Armstrong's projection:
If the market stays below 17,735 then it will test the lows. Now this is fucking useless btw as he doesn't say in which period, stay below this week, in the whole October, until end of November or until when. Anyway, so if the market stays below 17,735 - most likely he means in the next few weeks - then we will test the August lows or even it can go lower. (Armstrong indicated previously that DJI can go as low as 13K). He projects that if the resistance of 17,735 is hold, then following testing of the lows the slingshot move will take the market
UP, most likely to new highs. Please note, I add this as Armstrong indicated or implied previously that the slingshot move will be resulting in new highs. And then,
this new highs will be a giant bull trap which will take out the wall street junkies by taking back the market to new lows. Now, I am positive that's what he says.
If this scenario will unfold then that will be actually in line with TPTB timing theory about the money will flow to the US market following the lows of Q1 2016. Though in terms of capital inflow to US it doesn't really matter whether there will be lows on the market in Q1 2016 or not - the capital will flow to the US anyway.
Are any other SPX, DJI, IWM, GDX, etc. day traders here? If yes then I might open a thread to discuss these day trade issues as well as to share our day trade moves to embarrass ourselves by demonstrating how we can't predict the market.
