During the past weeks my view was negative. It remains so.
The big picture has not changed, we are just having a reaction, an year end rally.
This up move as it unfolds can create some short term profits on the long side.
But its main purpose should be to prepare for what will come: a Storm, a Mega Storm in my opinion.
As shown at the chart, we had Wave 1 down and we are now in Wave 2 up which forms in an a-b-c pattern.
When 2 ends, the Big Wave down (3) will start.
Enjoy the move up as long as it lasts and prepare your portfolios for what will most probably follow.
No need to add once again that this is strictly my opinion.
Do your homework, use ideas and analysis of others and build your own investment/trading strategy.
Be ready and fully informed.
The big picture has not changed, we are just having a reaction, an year end rally.
This up move as it unfolds can create some short term profits on the long side.
But its main purpose should be to prepare for what will come: a Storm, a Mega Storm in my opinion.
As shown at the chart, we had Wave 1 down and we are now in Wave 2 up which forms in an a-b-c pattern.
When 2 ends, the Big Wave down (3) will start.
Enjoy the move up as long as it lasts and prepare your portfolios for what will most probably follow.
No need to add once again that this is strictly my opinion.
Do your homework, use ideas and analysis of others and build your own investment/trading strategy.
Be ready and fully informed.
Comment:
sub counting of current move seems to be an a-b-c-d-e zig zag.
Once it ends, it will guide us.
Short term = the picture has two possible outcomes, first the reaction as to my initial analysis (a move to c of 2 before going down) and second a gradual move towards the zone of 2600 before moving strongly down.
Long term = Negative which means: Preserve Capital (any move up should be seen as an opportunity to decrease positions and increase Cash).
Once it ends, it will guide us.
Short term = the picture has two possible outcomes, first the reaction as to my initial analysis (a move to c of 2 before going down) and second a gradual move towards the zone of 2600 before moving strongly down.
Long term = Negative which means: Preserve Capital (any move up should be seen as an opportunity to decrease positions and increase Cash).
Trade active:
Normally we should see the start of a down move that will be deeply analyzed as it moves. I am opening a short position today.
Difficult to say so but today's move down is important.
Sentiment is sour and any negative development (today we have US vs China) has an immediate impact on US indexes.
If the S&P500 is not in position to immediately move above 2800 then the conclusion should be that the a-b-c was (a), (b) was 1 down, yesterday's top was 2 and we will start 3 of 5 down. We have a complex situation that needs close follow up.
The overall image as mentioned at my initial comment is Negative.