US 30 in Breakout forming Cup & Handle: Possible new ATH soon!
Inverted H&S clearly evident, now has broken above TL from consolidation zone; forming the Cup & Handle. EW (not shown, very unreliable to graph out of consolidation) suggests we may be completing Minor Wave 3, so expect some pullback before another burst higher. An extended Fifth Minor Wave could break 27400 for a new ATH.
Trades very near the 0.786 Fibo now up at 26940, might tag it intraday on Monday. We had an indecisive Harami Cross on Friday, so Monday's candle will be a signal; watch how it closes for indication.
Expect another week of consolidation in the higher price zone as the Handle forms. As we approach the FOMC on 17/18 Sep, and China talks in October, expect ferocious rally fueled by little more than greed and hope. SPX will likely retest the 3K zone and we could well see a new ATH this month. GANN: "Most new ATH occur in September."
Probably not a good place to be short IMO. Still too risky to sell puts, as a fourth wave could be quite sharp, retest the TL and consolidation zone, and bring much pain.
As Bearish as October was last year, it could turn out to be quite Bullish this year, as Trump manipulates global politics to prop markets up for re-election bid.
Any concessions, and even a tepid Deal with China would be perceived as a win for the Administration, in whose best interest resolution before 2020 is paramount.
Going Long on any pullback here; now holding both Bull and Bear spreads on QQQ and SPY, small Bear spreads on DIA, IWM, to close on a retest of support and roll into longs.
IMO am taking a real chance on shorting into the expected Handle, as it might not appear yet this week, so keep positions modest, eh?! Hold those long Bull spreads just in case. In event of a sharp pullback, can roll Bull debit spreads into credit spreads, cover the short OTM calls for net gain and sell calendar spread dailies for credit against the long monthly call positions to offset unrealized losses.
So many ways to play this! The Trend is your Friend, until the End of the Bend. GLTA!
This ain't advice, please don't invest based on this addle-pated crackpot notion!
PS As a sidenote, Moon is Waxing Gibbous at 74%; Full Moon on Saturday 14 September might mark Handle formation. Likely Bullish on Friday the 13th! LOL @astrology...
Trades very near the 0.786 Fibo now up at 26940, might tag it intraday on Monday. We had an indecisive Harami Cross on Friday, so Monday's candle will be a signal; watch how it closes for indication.
Expect another week of consolidation in the higher price zone as the Handle forms. As we approach the FOMC on 17/18 Sep, and China talks in October, expect ferocious rally fueled by little more than greed and hope. SPX will likely retest the 3K zone and we could well see a new ATH this month. GANN: "Most new ATH occur in September."
Probably not a good place to be short IMO. Still too risky to sell puts, as a fourth wave could be quite sharp, retest the TL and consolidation zone, and bring much pain.
As Bearish as October was last year, it could turn out to be quite Bullish this year, as Trump manipulates global politics to prop markets up for re-election bid.
Any concessions, and even a tepid Deal with China would be perceived as a win for the Administration, in whose best interest resolution before 2020 is paramount.
Going Long on any pullback here; now holding both Bull and Bear spreads on QQQ and SPY, small Bear spreads on DIA, IWM, to close on a retest of support and roll into longs.
IMO am taking a real chance on shorting into the expected Handle, as it might not appear yet this week, so keep positions modest, eh?! Hold those long Bull spreads just in case. In event of a sharp pullback, can roll Bull debit spreads into credit spreads, cover the short OTM calls for net gain and sell calendar spread dailies for credit against the long monthly call positions to offset unrealized losses.
So many ways to play this! The Trend is your Friend, until the End of the Bend. GLTA!
This ain't advice, please don't invest based on this addle-pated crackpot notion!
PS As a sidenote, Moon is Waxing Gibbous at 74%; Full Moon on Saturday 14 September might mark Handle formation. Likely Bullish on Friday the 13th! LOL @astrology...
Comment:
Handle forming! I closed shorts and bought a few small bull spreads on SPY, AMD. I don't expect this to be a big bear just yet; could be wrong so prudence is in order.
Comment:
With DJT and RUT in green it appears the broader market solidifies while big names suffer profit taking. IMO this pullback will be short and shallow; take care!
Looks like a Minor Wave 4 bullish countertrend, with Bullish fifth to be expected.
Looks like a Minor Wave 4 bullish countertrend, with Bullish fifth to be expected.
Trade active:
Closed out the calls as a retest of the support is a likely possibility. There is still a big unfilled gap back down to 2940 SPX, 26355 DOW which begs to be filled. Let's see!
Comment:
Found resistance above 27K. Still lookin at that gap to backfill.
Comment:
Yay Donald he's become so predictably unpredictable but there's the Tweet designed to prop up global markets. Expect to see more of these as we approach 3 Nov 2020.
This will be the third such gap up in a week; last time we had three monster up gaps they all gap-closed on the same day in August, yea sold off >700 pips then. Yay!
Meanwhile; retest ATH this week; throwover after FOMC IMO.
This will be the third such gap up in a week; last time we had three monster up gaps they all gap-closed on the same day in August, yea sold off >700 pips then. Yay!
Meanwhile; retest ATH this week; throwover after FOMC IMO.
