FOR THURSDAY: (10/5) Trade likely to be quiet before employment but not seeing anything that will knock the stock market down until next week. Gold could have a breakdown but not likely before a major report and then we have to decide how much to hold going into going into Friday.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for opening comments.
S & P ANALYSIS FOR WEDNESDAY: (10/5) Still looking for a 10-point pullback and the market did stall at 2538, which means 2528 and 2525 should hold dips. The 2545 target for Friday seem rather easy unless we get an unexpected surprise. Given the telescoping nature of the market, we should be open to more. Much above 2560 and we get an extension target of 2562. No need to top-pick but if we buy a 10-point dip at 2529, we have to sit through news.
NEAR TERM: Thinking that the market will start coming off the week of Oct. 9-13 and be in trouble until about Nov. 6. I suspect we will have to wait until the last minute for the Employment report on Oct. 6 and watch pattern completions. Running out of time to get to 2547 and we’ll have to see where we are by Oct. 6 and then lighten up on portfolios after that point. The honeymoon can quickly end with saber-rattling increasing with North Korea. The weeks of Oct. 8-20 are the ones that look more like the market will be in trouble.
CYCLES OVERVIEW: High by Oct. 6.
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