Something I noticed today while look at the 10-yr bond in general (reflecting loan rates).
If you didn't already know, the price of the 10-yr bond directly affect any and all loan rates available.
Mostly of course affecting housing loans.
That's another point aside, but it does look like the price of a mortgage will be expensive over the summer.
Anyway, what I...
Not very often does a stock form as nearly perfect a full Elliot Wave pattern as seen here.
Granted it is not perfect, however, it is so extremely close to finishing out the cycle that the previous moves must be taken into consideration.
I think it would be wise to pay attention to the looming failure of the Gigafactory...as that only comes into play:
Recent up gap from Quintiles looks like it will be filled soon due to slowed momentum at a peak.
I see zero consolidation in the patterns so this should not be breaking upward further at this time.
Two breaks in upward trendline post up gap.
Final break shows RSI falling under 70pt (overbought) threshold.
UO maintaining divergence to price, downward movement and...
Ford running out of steam on this current push.
Potential for quick short down to $15.57 area.
Entry = $16.25
Exit = $15.57
Stop/Loss = $16.56
Gain of $0.68 per share.
MACD tight on spread, potential to cross soon.
RSI and UO have NOT confirmed divergence, yet.
No confirmation in signals yet.
No volume either.
Wait until confirmed down trend.
If breaks current...
Salesforce.com has already broken through an ascending triangle setup yesterday and has continued onward today with upward price trend. Looking at the indicators on the Daily, there are no oppositions against this current price movement "yet". I say yet because the Weekly UO/RSI differ from the Daily.
The Weekly shows divergence in current price trend.
Tesla Looks to be forming a dual pattern that would double confirm the pending leg down in the April-May time frame.
Elliot waves up and down with a Head and Shoulders pattern overlaid on top.
I expect to see a price overing over $100 if the bottom falls out.
It shouldn't cross below $100 in the Spring to Summer time frame.
Did this quickly so no stop loss shown.
In past market recoveries and or market growth we see a confirmation that the economy is growing as well by looking at how retail companies perform. For example J C Penny performed extremely well before the Dot-Com bust and was also able to recover very well before going into the Housing Bubble.
Post the housing bubble, the economy has been inflated due to FED...
None of the indicators show absolutely that we are in correction just yet (monthly and weekly view).
On the daily in previous post I've noted where we've been and why we'll bounce up again.
This chart shows the Fib Extension has not yet hit 1.618.
Pair that will indicators not clearly showing correction and you can see how a weak climb recovery currently in...
Bounce off trend line bottom and continue back upwards.
Next chart will show where it will stop on FIB extension 1.6181
Price will bounce upward within trend line bands until it his the fib extension (next diagram).
Then RSI and UO will catch up on the weekly and monthly to show clear top on overall trend.
Will then confirm new continuous downward trend for price.
Looking @ RSI, SPEX is oversold and will push to positive tomorrow and if continued then will return to highs later this week. Do not see a clear price pattern at this point. Previously thought I saw an elliot wave forming.
UO and MACD do not show hard confirmations in the reversal yet, so expect slow price action until that is present.
When UO crosses 50 pt line...
Confirming seeing some price trending that fits an ascending triangle which is almost 3/4 setup.
Looking at UO converging seems like consolidation might be in last leg.
Curious if Ford will end up breaking out to highs of more than $25 per share?
Personally...the overall market indicators look bad for next year, not sure Ford will get the chance to break out or...
AAL is looking like it is on track to drop to between $28 and $25 per share middle to end of October (before the earnings report). As the head and shoulders pattern has been completed (passing an averaged neck line : $36-34) and then continued downward, I believe it is a strong position to assume the bottom will be reached soon.
Even if the price falls below $25...