I see a lot of crash calls, bear market is here, the bull is over, and maybe all saying this are correct. I even find myself leaning towards the bear camp. Keeping an open mind to all possabilities the market could have been in a correction all year.Corrections can be sideways. Many only believe corrections have to be down in nature. This is not the case since...
The sideways market looks to be coming to an end, with the odds heavily in favor of a sell off next week. S mall gains on light volume in the past few days, the general trend of the market, as well as downwards trend line resistance coming up soon, all point to a drop. Using the strong resistance at 54.40 as an entry point, first target is at $49.10, and the...
This week we saw major fireworks in the Builders and Healthcare sectors (as we'll detail more below) but the overall market indices continued to consolidate in the range highlighted in yellow. All of the major levels we outlined the past few weeks have held so the following scenario is still in play. We see 2 possible scenarios of which I believe the 1st scenario...
We have covered the last leg of our NQ trade. It was a solid trade. Understand that when markets are selling off the snap back rallies can be violent and quick. Today's afternoon rally was enough for us to cover per our plan. For now we will watch the NQ, ES and TF for more opportunity. Trade well.
After two attempts at getting target #2 we failed! Bummer. That's trading and as we've heard many time, "don't be a dick for a tick", we aren't. Price came within 5 points of our target and back away. We believe price is not done testing the down side so we will hold to our plan. These small bounces are on low volume. On the next visit to the recent lows we...
As we creep closer to our second target we are pulling stops to Break Even plus 10 to lock the trade in. We are fairly confident we will see target number 2 early in the session today. Regardless, we want to manage the trade properly. Yo never know when the PPT will swoop in to save the market. ;) Trade well!
The 3-wave advance from August low seems to be complete. This sets the stage for a larger downtrend continuation. There is also a short-term H&S pattern, which should be confirmed on 4-hour candle close below 1946.
We are short the Nasdaq from our post last night. We have set out stops and trigger. While this chart doesn't show it we hit our first target. We will leave stops in the same place and see if we can get Target #2. Stay Tuned
The bulls were squeezed hard on FOMC (and the day after). After many years of trading this is why we stay away from longer term trades until the dust settles. There will be more than enough opportunity to trade. Most of the indexes are at support or have broken their patterns. We expect a small bounce in the $NQ on Monday followed by more selling. An inside...
This week's price action was topped off by the FOMC announcement on Thursday. As was the case with all FOMC announcements, all eyes were firmly fixed on not just the announcement but to the market's reaction of the announcement. As mentioned in last week's commentary the 199.88 level acted as resistance and capped Thursday bullish run up. Friday's session was...
With the shortened trading week, this week's price action could best characterized as a period of consolidation, as the major indices closed near where they opened. All in all a slightly positive end to the end to the week as the buyers were able to close the week slightly higher. At this point all of the major levels we outlined last week have held hence the...
A lot of people are speculating if this is the start of a bear market, or just another pullback in the larger bull trend. Instead of anticipating, I think it's best to let the charts speak to us on this one...
Bearflag/Triangle pattern is about to get finished. Today or tomorrow, expecting big move. Either up or down. A further delay to a more stronger upmove is unlikely. If long, retesting 16700, then 17100.. Short target for dow when it's going down, likely sub 15000. Potential targets: 14100 points(2007 high) 12800 points(2011 high) The above targets are for...
Update on how the scenario we laid out on the weekend is playing out. The short term bottom we called has held. The market pulled back to the downside filling the gap we identified @ 194.68 and now it is on it's way to filling the upside gap at 197.67. Mid-term target is a rally to fill the gap @ 208.32 and a re-test of the symmetrical triangle.
The $ES has held a re-test of the breakout wedge. This is very normal. We call this the kiss or a revisit to the scene of the crime. With yesterdays buying it looks as if the Bulls still have some fight left in them. We are still very cautious to the upside. Shorter time frames area bullish. Longer time frames are bearish. We are standing on the sidelines...
Epic trading action this week and the adage that "the crowd is usually wrong" was once again demonstrated. This week's sell-off on Monday hit most of our downside targets we posted last week with the exception of the 2 remaining gaps @ 177.48 and 173.22. The likely scenario is that we've found a short term bottom here. A playable trade is for the market to...
If i look at this Chart, i dont think that we are going much further south...
Added some bearish possibilities (A/B/C correction & Bear Flag).