Speaking of TA, Charlie says this morning
"Taking all of last weeks analysis and next weeks FOMC meeting into account, it looks as though we are set up for some flat to downside until Tuesday afternoon or Wednesday....... If my EWA is correct our take off to greater heights begins in the middle to end of next week.......another piece of evidence that a major move is in the offing. EWA says it's likely to be a Bull Run........just be ready to protect yourself if it's a move to the downside.............remember that inability to rise after the last pivot is a sign of weakness and if something doesn't come along (like Alan Greenspan) to revive the cat then it's body is likely to fall through the crack.........this discussion bears upon the grander issue that I (recently) suggested that you ponder - why we may be set up for another major recession"
Make of that what you will. Recently Charlie seems to be suggesting that there is a final bull rally waiting in the wings before a major downturn (to 9000 or below) comes along.
Thats the beauty of TA, you can interpret it in so many different ways depending on which indicators you favour and how much weight you ascribe to them. One thing is for sure - there will always be signals that you can retrospectively identify that told you the market was due a rally or a dump !
I believe that we could be due some downside prior to the FOMC meeting next week since 10700 has remained firmly intact as the resistance ceiling for 4 months now and unless this is convincingly breached the market will not move higher. A rate hike or pause may be the trigger for the next directional move. I went long twice on the Dow at Friday lunchtime when it finally broke through resistance at 10600. I closed one position at 10645 and am still holding the other. I moved my stop up to 10590 after last nights close in order to see if it can hold above 10600 on Monday but if it stops me out there I'll go short again.
Still bearish over the longer term trend !
"Taking all of last weeks analysis and next weeks FOMC meeting into account, it looks as though we are set up for some flat to downside until Tuesday afternoon or Wednesday....... If my EWA is correct our take off to greater heights begins in the middle to end of next week.......another piece of evidence that a major move is in the offing. EWA says it's likely to be a Bull Run........just be ready to protect yourself if it's a move to the downside.............remember that inability to rise after the last pivot is a sign of weakness and if something doesn't come along (like Alan Greenspan) to revive the cat then it's body is likely to fall through the crack.........this discussion bears upon the grander issue that I (recently) suggested that you ponder - why we may be set up for another major recession"
Make of that what you will. Recently Charlie seems to be suggesting that there is a final bull rally waiting in the wings before a major downturn (to 9000 or below) comes along.
Thats the beauty of TA, you can interpret it in so many different ways depending on which indicators you favour and how much weight you ascribe to them. One thing is for sure - there will always be signals that you can retrospectively identify that told you the market was due a rally or a dump !
I believe that we could be due some downside prior to the FOMC meeting next week since 10700 has remained firmly intact as the resistance ceiling for 4 months now and unless this is convincingly breached the market will not move higher. A rate hike or pause may be the trigger for the next directional move. I went long twice on the Dow at Friday lunchtime when it finally broke through resistance at 10600. I closed one position at 10645 and am still holding the other. I moved my stop up to 10590 after last nights close in order to see if it can hold above 10600 on Monday but if it stops me out there I'll go short again.
Still bearish over the longer term trend !
