Welcome to the final week of Feb and the first week of March 2018!
How time flies!
2 months of 2018 has gone by and so so much have happened in the US market and economy that seemed
to draw a very clear line between 2017 and 2018; The biggest
intermediate correction in 2 years with the biggest 2 days drop in 8
years along with yet another US government shutdown.
Even
though the US government is still in shutdown, the US market has
actually continued its recovery off the bottom of this intermediate
correction exactly as I have predicted it. Indeed, when it comes to the
market, sentiments, which is how things "feels" matter much more than
what exactly happened. Even though a US government shutdown sounds
really serious, investors just don't think its that big a deal and
investors continue to be more technical oriented, which makes the recent
market behavior so predictable.
On
the technical front, I really like how the S&P500 rebounded right
off its 30MA on the weekly chart. This strongly supports my outlook that
we have seen the bottom of this intermediate correction and that things
are ready to get better. Why can't the market just turn around and
crash? Well, because market don't just crash without reason and there
are pieces that needs to be in place to generate a market crash,
something which so far has been developing but just not quite in place
yet. This is why I suspected that this is going to be a 2007 style kind
of year, building up to the market crash in 2018 as the pieces fall into
place through the course of the year.
However,
even though I expected this intermediate correction to put up some kind
of fight on the S&P500 front while the Nasdaq lead the way for now,
it seems like the S&P500, consequently the US market in general, is
ready for the kind of V shaped reversal that I never expected. It is
now up against its daily 30MA once again and if it breaks this level
today and follow up on it tomorrow, it would almost confirm the end of
this intermediate and that the market isn't going to make a double dip.
Why did I say "almost confirm"? That's because it still needs to test
the 30MA for SUPPORT after breaking it in order to confirm the reversal.
Like
all first weeks of each month, the ISM index gets released. This is one
of the most important economic indicators and how it does usually sets
the pace and mood for the month. Consensus is expecting a lower showing
and if it beats, it could truly provide the reason behind this recovery
and therefore the engine for new highs.
So
far, me and my Master's Stock Options Picks Subscribers as well as my
Star Trading System students have taken advantage of this reversal with
strategically placed call options early last week and we are sitting
already sitting on profits. If you missed making a profit this time
round, please don't miss the next opportunity to profit with me... sign
up now for just $1 at http://mastersoequity.com/
For now, the market remains in short term bull trend within an intermediate neutral trend and primary bull trend.
0 Comments:
Post a Comment
<< Home