Dow Ends Short Correction
Exactly as I have predicted in yesterday's report for paid subscribers, the Dow rebounded on its inverted hammer candle and made its strongest single day rally since April 2017! Here was what I said:
"..opposite to the inverse hammer candle, this is actually a bullish reversal candle and when it occurs in a short term oversold position, usually marks the bottom of a short term or intermediate correction."
(I only publicly post my reports here every other day. Do you Wish To Be on the Paid Subscriber email list? Subscribe by hitting the yellow button on the right below my profile photo)
Supporting the move was bond yields moving upwards as investors exit the safety of bonds and returned to equities. However, interest behind yesterday's rally seemed to be rather weak as total equities put call ratio remained in the uncertain zone rather than the call options zone like really bullish days are and how volume continues to decline into the rally.
As such, I do suspect that this isn't where the Dow simply go straight up and challenge the 22K level again. With such a strong single day rally and weak support from traders, I won't be surprised to see some profit taking Wednesday followed by some struggle around the Dow's 30MA for a few more days before it can muster enough energy to stage a real breakout.
ALERT:
This week is also my birthday week! Yes, celebrating my 41th birthday on the 25 Aug, my Star Trading System mentoring course will be available for sign up at a huge 50% discount! Yes, learn the exact secret of my stock picking method and arrive at the exact same trades and conclusions that I do independently for life! Take advantage of this discount now!
For now, the market turns a short term and intermediate neutral trend within a primary bull trend.
"..opposite to the inverse hammer candle, this is actually a bullish reversal candle and when it occurs in a short term oversold position, usually marks the bottom of a short term or intermediate correction."
(I only publicly post my reports here every other day. Do you Wish To Be on the Paid Subscriber email list? Subscribe by hitting the yellow button on the right below my profile photo)
Supporting the move was bond yields moving upwards as investors exit the safety of bonds and returned to equities. However, interest behind yesterday's rally seemed to be rather weak as total equities put call ratio remained in the uncertain zone rather than the call options zone like really bullish days are and how volume continues to decline into the rally.
As such, I do suspect that this isn't where the Dow simply go straight up and challenge the 22K level again. With such a strong single day rally and weak support from traders, I won't be surprised to see some profit taking Wednesday followed by some struggle around the Dow's 30MA for a few more days before it can muster enough energy to stage a real breakout.
ALERT:
This week is also my birthday week! Yes, celebrating my 41th birthday on the 25 Aug, my Star Trading System mentoring course will be available for sign up at a huge 50% discount! Yes, learn the exact secret of my stock picking method and arrive at the exact same trades and conclusions that I do independently for life! Take advantage of this discount now!
For now, the market turns a short term and intermediate neutral trend within a primary bull trend.
posted by Jason Ng at 3:48 AM
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