Wayne
Oddly, I have been eyeballing the current pattern on the
$compx and have an interesting prediction relating to the
doji you foresaw before the close. Try not to laugh too hard.
On the Daily Chart, $compx we have a low on 10/13 on the FM
(full moon), a high 10/20 LQ (last qtr), a low 10/26 NM (new moon), a high 11/3 1Q (1st Qtr). The action of 10/20,23,24 was kept in check by the 30ema (exponential moving average
coinciding with 29.5 lunar cycle), a moving average I follow.
Similarly, the 30ema provided stiff resistance again on the
highs of 11/2, 11/3. If this pattern persists a bit longer,
a low would be expected on/near FM 11/10, next Friday.
From a more technical point of view, the pattern forming on the 60 min charts of $compx, $dji, $spx do not look very bullish to me. These wedges technically are bearish.
Individual stocks, many I watch have completed Fib. retracements of 38%-50% from Aug highs to Oct
lows. JNPR completed filling its gap today from its recent
dive. Beara's recent warning is also fresh in my mind as are
all recent reminders that this market is not so healthy.
All in all, I do think the $compx is in a bottoming mode, but
the waters are choppy and it just wouldn't surprise me in the
least to see some weakness next week and another low next
Friday. Some of the stocks I play have already shown sell signals on 60 min charts (GBLX yesterday, LBRT today). I took
profits on longs yesterday, did modest shorting today and will be looking to buy again on weakness late next week.
Basicly, this whole week I've been profitably long; now
in flat/short posture looking to pick up bargains again next
week.
I admit in advance my analysis is unconventional at the least. I think it is perhaps worthy of consideration and it
sure will be interesting (at least to me) if we see more
selling next week followed by another chart marker on the
full moon.
Good luck to everyone.
Regards,
Eichler
P.S. As nothing goes straight up or down (usually), maybe some flatness or modest rally Monday followed by deterioration. OR, now that I posted this wacky idea, the
markets go straight up to da moon! <ggg> |
