Absolut Must Read Links: Week in Review

It was a wild and crazy week and several of these bloggers can give you an idea, a recap or a breakdown of what actually happened.
Enjoy and have a great Weekend!

• Deep Market Thoughts:
  “Because I think (opinion, not fact) the market is extremely rigged, I also have learned to take the longest possible view. I have the best chance of being correct and will keep my costs down. Not that complicated.”
• Market Metldown:
  What’s happening now? I cannot stress enough that the action did not cause severe technical damage on the charts. There is a clear support zone right below price action that could thwart the selling momentum in the short-term, but should this level fail, bears would gain authority and further deteriorate the rising market.
• Weak Home Sales, Tightening Credit Standards = Multiple Mortgage Apps:
  Based on our interviews with our Real Estate clients (commercial builders, RE brokers) and especially residential Mortgage Brokers, there appears to be a dramatic rise in multiple applications for both new purchases, refis, and home equity lines.
• Blood In The Streets! Bears Piss Themselves While Celebrating! It’s “Buy Time!”:
  There are only 118 of the S&P 500 stocks above their 50 dma, and only 267 of them above their 200 dma. The last three times that happened were near the bottoms of the corrections of Apr 2005, Oct 2005, and Jun 2006.
• Is T2108 Already Indicating a Bottom?:
  Aside from the glaring negative divergence in T2108 what really struck me about T2108’s chart is that it’s already below its *magical* 20. As I’ve posted many times before, 20 on T2108 is typically a sign a of a decent bottom and a buy signal.
• When Traders Lose Confidence – Part One: Gaining Perspective:
  “Were you wrong, or were you trading poorly?” It’s a key question. There will always be risk and uncertainty in markets.
• When Traders Lose Confidence – Part Two: Changing Your Self-Talk:
  Confidence is not something we have, like money or a car; it is something we do. Confidence is our appraisal of our capacities relative to the challenges we anticipate.
• The Return of the Absolute VIX:
  Fast forward to the present and here we are with a VIX in the 20s and suddenly the old numbers may have some meaning.
• Relief Rally:
  Today we got the much anticipated relief rally… to the downside. Relief from the never ending barrage of “Dow 14,000” blurbs and flashing alerts from CNBC.
• IBD100 Strikes Again:
  Stocks with the very best fundamentals function like an early warning system for the stock market. Until they sell off in heavy volume, a rally almost always keeps moving higher.