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Tuesday, August 27, 2019

Market Update 8/27 - Choppy Markets Continue

Trading a range is usually no fun, and this one is no exception. Lots of waiting, then the rug get pulled out, then back to building base, and more waiting

$SPX 1 min chart - at least I got Friday's sell-off right, and I kept the down-arrow on it for a good 10 min. while they drove the $VIX back down, so they could roll their Calls over into the next week. It was an awesome trade, but now we're left waiting again.

Regardless of the bearish looking 1 min chart above, choppy, "sideways action, with lots of head-fakes", is what I predicted, and that continues. I may not win any popularity contests calling for continues sideways action in a range, but you saw what happened to overly bearish futures traders Sunday night.

NASDAQ 30 min chart - See the little wave "e" throw-over past the target, Friday afternoon. We could continue to build a base for a couple more days. More waiting. 

I suspect that was an wave "e", because of the overwhelming bearishness associated with this little pullback. and the fact that it threw over past the target, before reversing.

Triangle patterns are hard to identify, and hard to trade, and when you look at the range on the DOW, it looks more like an expanding (broadening pattern), as seen below, so the fun continues. 

$DJIA - The 30 min Dow chart show an alternate broadening triangle pattern, and I'd expect to retest the top of of it, before the lower end...

 The DOW seems to be trading back in the down-turned triangle pattern I pointed to a week or 2 ago. You can see the upper triangle line being sold once again, but is this pattern still valid? NO
Watch for a breakout above yesterday's highs.

$DJIA - seems like the bears are still clinging to this pattern 

$SPX continues to trade in a range - as I pointed out in yesterday's update. 

I offered a couple alternate trades in yesterday's update, so also check those out.

Gold - momentum slows, as volume falls off. Looks like a false breakout above the 1526 level

Silver - look for a reversal at the 16.80 level, on the $SLV. Of course it can overshoot the target, before reversing, and if you don't already know that you should've even be trading commodities 

The Dow Priced in Gold. Something has to give, and I predict it's going to be Gold, and gold miners.

The oil trade has been choppy at best. I do see some support here, on the LT $WTI chart, so I wouldn't be making anymore bearish bets, based on the short term $USO I have up in the the Public Charts area. In fact that chart is coming down.

So when is the Market crash again? Probably not for a while. When my pink line breaks, maybe in early 2020, in a continued coup against our sitting president. They will stop at nothing to get the orange Hitler out of office. Ask Government Sachs, when they plan to crash it. 

There's still a good possibility that we see a new high first, but the correction is already being engineered, and certain markets are already looking pretty shaky. 

Take Care,

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