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Wednesday, January 25, 2017

Market movers and Fibonacci targets - advanced charting techniques

Market movers and Fibonacci targets

 GE leads the way to Dow 20k

The market continues to melt up as expected - as we trade into earnings season - and that means certain stocks are going to lead the way, and by looking at the earnings calendar, and the charts, we can try to determine which stocks are likely to lead the market. We call these "market leaders". These are the stocks which move entire sectors, and even the broader market, and by determining which stocks are being used to drive markets, and charting them, it gives me an edge on timing the entire market. This is part of my, "chart everything", philosophy.

This brings me to Dow component $GE: The same GE that owns (financial network) CNBC, MSNBC, and NBC. Part of the "dishonest", leftist, national media, as singled out by President Trump, and others.

MSNBC Commentators Protect Their Corporate Bosses at GE


The same GE that was brought under the (TARP) umbrella (protection) of the Fed, during the bank bailout, but there's even more to this story...  

Loophole Helps GE Benefit From Bank Rescue Program

 The same GE that benefited from sales of technology to Iran, well before it was legal.

Doing Business With The Enemy

 All proof - in my mind - that General Electric is part of the corrupt swamp, and every bit as crooked as any of the big banks, and a big part of the military industrial complex, which President Eisenhower warned us about. It's a "swamp stock", and it wants to be drained, but as long as investors are bullish fundamentals mean little. This is the same GE which quietly diluted it's shareholders in it's latest earnings statement. Who cares?

This is the same GE I identified earlier in the week, as "one (of the stocks) to watch".  

It's one of the few Dow components that's experienced a pull back, as the Dow pulled consolidated lower, and that's a tell. As long as GE is being shored up, the powers that be aren't in risk off mode.

The very morning I tweeted out the fact that GE had found support at the 200 day moving average, is the day that GE broke that support broke. This is normally a very bearish indicator, but GE did find support at a secondary bullish target.

Most traders are familiar with Fibonacci (Fib) ratios, and if you aren't you should do your home work...  

GE bounces off a key Fib retracement of 61.8% (aka "The Golden Mean")

Will GE actually make a new high? I'm not certain, but the above chart proves that GE is no longer leading the way down, and that is still one to watch, and it's proof that Fibonacci targets are worth watching.  

There's is nothing coincidental about that target, any more than the 38.2% Fib pullback targets on this LT Dow chart are coincidental.

Any more that the 61.8% retrace (of the previous decline) on the $USD is coincidental.  

If you missed my twitter update on Monday, I remain bullish into Dow 20K and probably into the Brexit news next week.
Most markets are trading sideways; either forming a top, or consolidating sideways.
You can follow me on Twitter @3Xtraders
Take care, AA

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