We now see that DaBoyz were saving their firepower in those final, sluggish weeks leading up to 2018. The tactic of goosing the market into a vertical parabola as the new year begins is bound to scare off sellers. If so, we should see the broad averages accelerate to the upside over the next week or two. Which is to suggest that the 152-point rally in the Dow on Thursday was just a warm-up. Even if so, I’ve proffered a rally target in the E-Mini S&Ps that can help us determine whether to dive in ourselves, or simply marvel and be entertained by it. However things play out, it won’t be brute sellers who end the party, but tired buyers who are harder to detect.
Are the Big Guns Just Warming Up?
- January 5, 2018, 8:59 am
Correct just the warm up.
As, the UTY Index has created a major turning point (long term), the 10 percent reading off its high of 11/2017 also created a major 3 month pattern ‘Evening Star Pattern. This reversal pattern is key in placing a very important valued area in the stock market.
The INDU and the TRANS are in sync as towards the next high after a selloff in both will move towards a main driver to turn all downward.
A major Commodity Boom door has opened.
Have a great weekend.