Page menu

Tuesday, January 7, 2020

Market Update January 7th, 2020

Hope you all had a good holiday! 

It's been more than a week since my last update, but holiday trading was slow, and not too predictable going into the New Year. So much for Santa Claus rally theory.

It was a good thing I replaced the 1 min. chart, with the 10 min view, before the very short term charts broke. 

I've been pretty busy in the mornings trying to make sense of this market, and trying to get a handle on commodities, currencies, and tracking foreign markets, and that just doesn't leave much time to blog.   

I continue to provide updates from my Twitter feed @3XTraders, so follow me there, if you can handle my politics. I have folks following me there, who have opposite political views, and I try not to let that distract me from the business side. Just don't pester me there, or I'm liable to block you in a New York Minute. See my friendly warning in the the public charts Legend, linked to - in the tab above - on this page.       

Technical Issues

Third reason I'm not blogging as much is that my computer has been acting up, not wanting to start up in the morning. No boot up, after powering up, black screens, etc. Yesterday she froze up a minute after start up, and it took 15 minutes to change some bios settings, and run windows startup repair program. This is a bad sign of things to come. This morning she fired right up, but the video flashes from one monitor to another, and this points to an ongoing hardware issue. I'm probably going to have to do a hardware upgrade at some point, and planning to back up my files today.

In the mean time: if I experience a major hardware failure, I'll tweet out an alert from my mobile.

I got distracted this morning, and almost already out of time.

$DAX bounced off support yesterday, so we seem to be getting back to normal trading. The US market has been trying to lead, and that just hasn't worked out too well. Next I'm going to be looking to see if the $DAX can take out the 2018 high. That could take at least a week, so I'm not seeing an imminent global sell-off. 

The 10 min chart isn't working too well. Looks like it might be trading into a down-turned triangle, pointing at the 3200 level, but you're better off watching the DCS charts. 3200 looks like the stophunt, so if that level breaks we could see a big move to the downside.

$SPX DCS chart: Stophunt is 3200, at my purple line

Maybe the market continues to hold up in the short term, but I'm seeing a 10% pullback target before March.

If the market continues to melt higher, then DOW 30,000 is an obvious psychological target. And from there, a pullback to 25500.

Don't miss the next blog, and watch for a $VIX breakout above the 16 level.

In the meantime see: Well-intentioned plans can bring unintended consequences. The world’s major central banks have been adding stimulus to the global financial system, hoping to lessen economic volatility" 

And now you know, who's manipulating "volatility" 

No comments:

Post a Comment