25th Anniversary of Black Monday on a Friday and the USDJPY Ichimocci Chart

19 OCT 1987 – 19 OCT 2012

Top 10 Greatest Dow Daily Losses of All Time

1. 19 OCT 1987 -22.61%
2. 28 OCT 1929 -12.82%
3. 29 OCT 1929 -11.73%
4. 6 NOV 1929 -9.92%
5. 18 DEC 1899 -8.72%
6. 12 AUG 1932 -8.4%
7. 14 MAR 1907 -8.29%
8. 26 OCT 1987 -8.04%
9. 15 OCT 2008 -7.87%
10. 21 JUL 1917 -7.84%
11. 18 OCT 1937 -7.75%
12. 9 OCT 2008 -7.33%
13. 1 FEB 1917 -7.24%
14. 27 OCT 1997 -7.18%
15. 5 OCT 1932 -7.15%

Oct 2012 so far, S&P 500 is up 1.2%. In 2011, it was up 10.8% and in 2010 it was up 3.7%.

So nothing to worry about for us.

Indicators have turned up and the Citi Economic Surprise Index is looking real pretty, reading 53.9 which suggests that positive economic news are expected amidst market optimism.

I still stand by my Jaws of Death theory  but I say we are still some way off before the panic attack.

What is imminent and pertinent is the holy Wave 3 in the USDJPY Fibonacci chart, coupled with the Ichimoku break out. I coin the term ICHIMOCCI (trademarked) for this occasion.

Level to buy (but I am already long) 79.05 where the break out of the Ichimoku cloud occured.

Target 80.75 (the 61.8%) but to expect resistance at 79.76.