By Dan Denning
August 12th, 2010
And just like that “the fear” is back. “The fear” is that the lazy month of August in the Northern Hemisphere might be good for your tan, but it’s not going to do anything for you have a lot of money to repay and no way to repay. That goes for sovereign debtors in Europe and homeowners in America alike.
Dawes called it. Dawes, as some of his readers refer to Slipstream Trader Murray Dawes(in the way that rock aficionados refer to “Prince” as “Prince” and pop aficionados refer to “Gaga” as “Gaga”) sent out two alerts yesterday that amounted to single-stock plays on a falling market. He did the same thing, amazingly, on April 15th – the very day the ASX made its intra-day and closing high for the year.
Dawes, like all traders, is a bit weird. We have to confess the traders are a different breed. It’s like they speak the same language but use an entirely different vocabulary. Part of that vocabulary is technical. In the case of Dawes, it’s understanding the concept of the widening distribution and the point of control – the formations which explained and, to a less clear extend, predict future price action.