Happy New Year Market Rally

Happy New Year Market Rally

Happy New Year Market Rally as predicted last week, when I said, "I'm afraid the market makers got it wrong", on Friday.

#VIX only broke out slightly. Think the market makers got this one wrong. No fear

— Anthony Allyn (@3Xtraders) December 30, 2016

Turns out selling the market into a weak $VIX, heading into the first trading day of 2017, was a bad idea. I only hope the hedge funds were using me as a contrarian indicator, because that's going to happen, believe me!

Today Monday: Not long after the open (with the Dow up 160 points), it was already time to take profits, as the price action back-tested failed support.

The $SPX actually touched my red line, before reversing, but that didn't change the outcome.

The Dow also seems to be trading in a sideways pattern, with wave D target of 20k.

The $VIX has since come back to earth, and even broke below the 13.42 level for a moment this morning.
Now I'd expect the market to consolidate for a day or two, before making another run at the recent time highs. The market needs to consolidate, after last months run, so we're either going to trade the range (in purple), or pull back in a sharper correction, looking forward into next week.


A couple important announcements:

1. I've deactivated our private twitter feed @3Xtrades. There were only 50 traders following me there, and only a few donating.... It's a lot of stress feeling like people are constantly depending on you, and I tend to try to hard, which leaves me feeling taken advantage of, and at some point I have to cut my losses. Before you know it the market will be crashing again, and I figure it's better to try to reach a wider audience, than try to micromanage trades for a bunch of deadbeats. Thanks to those who continue to support this website, and you can follow me at @3Xtraders, at this website, and on YouTube. If you're a private investor, or hedge fund, I'm looking for work. Feel free to contact me.   
2. The Public Charts are also gone. Funny all the positive feedback I've received from those charts, and some folks even had the nerve to complain when I took them down, because they were "using them"... but again, none were willing to help support the cause. The public charts area may come in handy some time, so I'm leaving the link in the side menu, for future reference.  

Happy New Year, AA
 

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