Bears Strike Back as expected...
The market gave up all of its gains on FOMC announcement day today exactly as I predicted it yesterday in my report to paid subscribers. This was what I said:
"However, the S&P500 is once again up against the 30MA which is currently expected to be the short term resistance level and how the market behave around this level should be taken as the final verdict on this rate hike sentiment. I expect to see some profit taking around this level which will then test the resolution of the herd. Failing at this level means a third declining peak, which is extremely bearish. The current market formation and business cycle still favors to downside despite the strong day today. The overall market trend currently remained a neutral one in which I continue to favor accumulation of put options on every of these strong day"
(Yes, I only publicly post my report here 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!)
Once again, the 30MA proved to be a strong resistance level for bearish inclined markets as always. Economic data was pretty much mixed with good showings on some and bad showing on the Philley Fed. However, the bad Philley Fed report, which is actually an important market moving indicator (so is the leading indicator which actually turned out better than expected), could have contributed to this but I continue to attribute today's market action largely to the existing bearish inclined sentiment in the market which resulted in a bearish inclined framework in the charts. Its like good news rarely do much to please a grieving family. Today, the S&P500 completely took back all of yesterday's gains and more. I truly hope you readers who were not subscribed to my report did not jump in on this bull trap.
The S&P-500 completed a third declining peak formation with today's decline, which is as I said yesterday, a very very dangerous bearish formation. Such a formation usually precedes a significant bear trend. The last time such a strong declining peaks formation was seen was back in October of 2012 when following the third declining peak, the market slumped over 5%. Early that same year we saw a twin declining peak resulting in a 7% slump. A series of declining peaks also heralded in the 2008 market crash. As such, this is one formation to be very careful of.
My Masters' Stock Options Picks subscribers and I have already prepared our put options position to profit from this slump, have you? Join my Master's Stock Options Picks service now!
Market Crash Timer: ORANGE
For now, the market turns a short term neutral trend within an intermediate and primary neutral trend.
"However, the S&P500 is once again up against the 30MA which is currently expected to be the short term resistance level and how the market behave around this level should be taken as the final verdict on this rate hike sentiment. I expect to see some profit taking around this level which will then test the resolution of the herd. Failing at this level means a third declining peak, which is extremely bearish. The current market formation and business cycle still favors to downside despite the strong day today. The overall market trend currently remained a neutral one in which I continue to favor accumulation of put options on every of these strong day"
(Yes, I only publicly post my report here 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!)
Once again, the 30MA proved to be a strong resistance level for bearish inclined markets as always. Economic data was pretty much mixed with good showings on some and bad showing on the Philley Fed. However, the bad Philley Fed report, which is actually an important market moving indicator (so is the leading indicator which actually turned out better than expected), could have contributed to this but I continue to attribute today's market action largely to the existing bearish inclined sentiment in the market which resulted in a bearish inclined framework in the charts. Its like good news rarely do much to please a grieving family. Today, the S&P500 completely took back all of yesterday's gains and more. I truly hope you readers who were not subscribed to my report did not jump in on this bull trap.
The S&P-500 completed a third declining peak formation with today's decline, which is as I said yesterday, a very very dangerous bearish formation. Such a formation usually precedes a significant bear trend. The last time such a strong declining peaks formation was seen was back in October of 2012 when following the third declining peak, the market slumped over 5%. Early that same year we saw a twin declining peak resulting in a 7% slump. A series of declining peaks also heralded in the 2008 market crash. As such, this is one formation to be very careful of.
My Masters' Stock Options Picks subscribers and I have already prepared our put options position to profit from this slump, have you? Join my Master's Stock Options Picks service now!
Market Crash Timer: ORANGE
For now, the market turns a short term neutral trend within an intermediate and primary neutral trend.
posted by Jason Ng at 4:53 PM
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