Stocks are supposed to play nice on Christmas Eve, but not this year. The Dow fell 653 points, setting a dubious record that could conceivably stand for decades. If there’s a silver lining, it lies in the possibility that bulls are probably close to capitulating. Ordinarily we might expect that to take a drop of a thousand points or more in a single day. But considering the very bullish seasonality, it’s possible that it will require less to bury correction bulls deep enough in the pit despair to flatline them. In any event, AAPL is due for an upturn at a robust-looking Hidden Pivot support at 145.66. That could provide the mood change that Wall Street so desperately needs, although there can be no guarantees.
Santa Gets the Royal Raspberry
- December 26, 2018, 2:04 pm
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December 26, 2018, 11:08 am
The market had enter the 40-60 trading time period where the long trend becomes amplified from a major high point. This process was the 42nd trading day of that pivot point.
The market now, with over whelming bearish sentiment created the beginning phase of ending its 1st phase. A place where conformation towards the larger trend is seen in the UTIL Index (this is Key) and as this takes place, places the ax towards all value downward and a major bear market in place over the long term Taking an updated note of its 5% decline and breaking its pass ago 3 month low point. ALL are now down..
Once the 1st phase ends (meaning some type of 1st low point in equities) the DXY market begins and ‘amplifies its turn downward’ in as much an event as what had just taken place in the equity markets. This action supports equity pricing and creates a counter trend rise in equities ‘how much’ sometimes not much, more of a 6 month trading range could be all equities gets.
This is the ‘switch’ towards investing…as that flight towards a new type of climate takes place.
The rabbit hole is deep and the next 10 trading days we will see some type of low point, the pricing of that low point can range from this 20 percent down level too as much as 40-50%.
Have a great New Year ahead and I wish Rick and all a very healthy one.
Towards the INDU index, moving 8-12% lower of ‘today’s’ low point will seek an end to this 1st phase downward.
Happy New Year.