FOR MONDAY: (10/9) Feels like another waiting for apocalypse weekend with Trump talking about the calm before the storm and N. Korea liking to launch rockets before on their National Holiday on Tuesday. Hurricane Nate may only be Category 1 but headed for the Gulf region. Surprised that oil futures stayed near their lows. Chances are nothing will happen and the stock market will continue on its merry way higher.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for opening comments.
S & P ANALYSIS FOR MONDAY: (10/9) S & P completed the 10-point pullback finally and has to hold 2438 and 2435 on Sunday night or else a sell signal will be issued. Inclined to think that 2462 will come in by Monday and complete a major pattern and then set up a fall to 2477 next. Trade may not want to push the market with N. Korea celebrating the formation of their Communist Party on Tuesday and they have tended to celebrate this day by launching missiles.
OVERALL: We decided not to take anything home but it would seem that this market needs to make new highs to complete patterns into early next week. We like to see price and pattern completions before calling a top and we’ll throw out cycle energies until all of them align. We could get sickly congestion also early in the week.
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 Running out of time to get to above 2562 and we’ll have to see where we are by Oct. 8 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: Higher Sunday; topping Monday; lower Tuesday.