Nouriel Roubini (NYU Stern) and Taleb Nassim (author of Black Swan) are both in Davos and if the two come into contact it could create some sort of massive black hole that destroys everything?
Turning Point?
Should we really over think the next move in this market? I don't think so. One thing I learned years ago was, when things are working, stick with it until proven wrong. This has nothing to do with superstition and everything to do with ebb and flow of the market.
The following chart illustrates the last four months. It includes two Fibonacci range expansions.
"Range One" takes range from the October 10th low to the November 21st low and projects it forward. This range timed perfectly the January 9th High. It also targets another around the middle of February.
"Range Two" runs from the November 5th High to the November 21st Low. This range projected the December 9th turning point within one day. And the Christmas time turning point within a day. It has also identified January 30th as a pivot point.
So, where to next? The below chart shows two possibilities.
The Red Option:
If we get a similiar size and strength move as we had from November 21st to January 9th, that would have a move that would track the red line extending to a new high over 1000.
The White Option:
If we get a similiar size and strength move as we had from January 9th to January 20th, that would give us a move that that would track the white line extending to a retest of 941.02 and possibly below.
My Thoughts:
Additional to the thoughts above, the core formation building is looking potentially like a head and shoulders patten. This is one of the most recognized and consistently traded patterns of all time. Rarely does this pattern fall apart. The combination of all these factors, lead me to think the direction is up and not down.
read more “Turning Point?”
The following chart illustrates the last four months. It includes two Fibonacci range expansions.
"Range One" takes range from the October 10th low to the November 21st low and projects it forward. This range timed perfectly the January 9th High. It also targets another around the middle of February.
"Range Two" runs from the November 5th High to the November 21st Low. This range projected the December 9th turning point within one day. And the Christmas time turning point within a day. It has also identified January 30th as a pivot point.
So, where to next? The below chart shows two possibilities.
The Red Option:
If we get a similiar size and strength move as we had from November 21st to January 9th, that would have a move that would track the red line extending to a new high over 1000.
The White Option:
If we get a similiar size and strength move as we had from January 9th to January 20th, that would give us a move that that would track the white line extending to a retest of 941.02 and possibly below.
My Thoughts:
Additional to the thoughts above, the core formation building is looking potentially like a head and shoulders patten. This is one of the most recognized and consistently traded patterns of all time. Rarely does this pattern fall apart. The combination of all these factors, lead me to think the direction is up and not down.
Subscribe to:
Posts (Atom)
