Topside Breakout
The market action today was once again exactly how I predicted it yesterday in my report to paid subscribers:
"Today's market action also suggests that investors are not overly optimistic about tomorrow's numbers and that it has not been overly priced in yet, which pretty much removes the possibility of profit taking despite good numbers, which means good numbers could still move the market upwards...Which means from how these numbers are expected to move, odds are now in favor for an upside breakout if there are no negative surprises."
And so it was. Most of the major economic data today pretty much turned out how I predicted it yesterday:
"Looking at Leading Indicators, it made the biggest downwards jump for years last month, which means that odds of it turning out higher than last month is extremely high. Jobless claims have been dropping for a couple of weeks so the current consensus for a higher number is pretty much in line with how this number behaves so even if jobless claims are higher, the impact would not be dramatic unless it is really unexpectedly higher. Existing home sales were lower last month which puts the odds in favor of a higher number this month, especially with how the other housing data has behaved lately, the consensus of a higher data isn't hard to meet. "
(Yes, I only publicly post my report every other day at best but paid subscribers get my reports DAILY for LIFE... sign up now! Only $99 for LIFE! And it takes only one winning trade to make that back and MORE, you know it!)
Even though the topside breakout has been made, it doesn't mean the market is going to shoot straight up from here. In fact, it won't be surprising to see a bit of profit taking over the next few days especially since there isn't any strong market moving data tomorrow. So, does this spell the end of this supposed market crash? Well, at this point, the market does look like its making a classic reversal out of an intermediate correction on a rising double bottom. However, the macro picture still remains that the stock market cycle is imminent and the market still has major resistances to break. This is definitely the time for extremely short term trading strategies and the short term for now is definitely bullish.
Market Crash Timer: ORANGE
For now, the market remains in a short term bull trend within an intermediate and primary neutral trend.
"Today's market action also suggests that investors are not overly optimistic about tomorrow's numbers and that it has not been overly priced in yet, which pretty much removes the possibility of profit taking despite good numbers, which means good numbers could still move the market upwards...Which means from how these numbers are expected to move, odds are now in favor for an upside breakout if there are no negative surprises."
And so it was. Most of the major economic data today pretty much turned out how I predicted it yesterday:
"Looking at Leading Indicators, it made the biggest downwards jump for years last month, which means that odds of it turning out higher than last month is extremely high. Jobless claims have been dropping for a couple of weeks so the current consensus for a higher number is pretty much in line with how this number behaves so even if jobless claims are higher, the impact would not be dramatic unless it is really unexpectedly higher. Existing home sales were lower last month which puts the odds in favor of a higher number this month, especially with how the other housing data has behaved lately, the consensus of a higher data isn't hard to meet. "
(Yes, I only publicly post my report every other day at best but paid subscribers get my reports DAILY for LIFE... sign up now! Only $99 for LIFE! And it takes only one winning trade to make that back and MORE, you know it!)
Even though the topside breakout has been made, it doesn't mean the market is going to shoot straight up from here. In fact, it won't be surprising to see a bit of profit taking over the next few days especially since there isn't any strong market moving data tomorrow. So, does this spell the end of this supposed market crash? Well, at this point, the market does look like its making a classic reversal out of an intermediate correction on a rising double bottom. However, the macro picture still remains that the stock market cycle is imminent and the market still has major resistances to break. This is definitely the time for extremely short term trading strategies and the short term for now is definitely bullish.
Market Crash Timer: ORANGE
For now, the market remains in a short term bull trend within an intermediate and primary neutral trend.
posted by Jason Ng at 7:47 PM
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