All About Trends Subscriber Mid-Day Update
Courtesy of David at All About Trends
Overall the trend is down. And more and more we hear chatter on TV, chatter in the blogosphere that is all very bearish in nature. We Got Issues–everywhere. Ultimately, we don’t feel like we’re done going down in the big picture.
HOWEVER what about next week?
Next week is screw the little guy who’s now bearish and firmly convinced we are going down the tubes AFTER we just got hammered huge to the downside over the last few days. Overall we have nothing good to say big picture, however we are swing traders and OPPORTUNISTS. Our plan is to trade what we see, not think, hear or fear. That plan is to make money regardless of what direction the markets are going. Yes sometimes markets are easier than others but that’s the market. Get used to it, nobody ever said it was gonna be peaches and cream.
Next week is OPTIONS EXPIRATION WEEK. We can’t tell you how many times we’ve seen markets get run to the upside into options expiration week. You see more often than not whatever the prevailing mood of the masses is, the market does a good job of doing exactly the opposite what most expect so expect that.
That MAY be what we are faced with next week, a nice upside pop into options expiration. The charts show this as being a good possibility too.
Look at the short-term 1 minute charts. The 5th wave down has yet to begin. That is unless the lows of today are a truncated 5th.
Now let’s look at the daily charts.
Make special note of the black and red lines in the full stochastics settings at the bottom. The black line is "In The Zone" but yet the red line has not caught up to it yet. Now look at some past key turn points. See what happens to the market (or a stock) once the red line catches up to the black line and they crossover to the upside? Look at the July lows.
The same goes for the overbought side. Look at the June highs.
Yesterday we had a lot of the "Follow The Leaders" Go Go Names here. They are for the most part stabilizing. Typically the leaders stabilize first.
BIDU- up a qtr.
CRM- up 1 point
VMW – up 2 points
CLF- up a half.
Let’s see what happens into the close of this bad week.
Any strength we see in the markets is likely temporary and a ramp up into options expiration.
See you this weekend!
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