“Those who have knowledge don’t predict. Those who predict don’t have knowledge.” Lao Tzu, Chinese philosopher, 6th century BC

PAYPAL

Wednesday 18 December 2013

18 Dec 2013

Our abcde scenario yesterday was on the dot.  We had an impulsive move up following the wedge which is typical behaviour just right after the pattern.  We should watch for a new high and watch for a 5 wave pattern to produce itself.  I believe that based on the cycle chatter out there that the 5 waves could complete somewhere near mid January.  So keep this date in mind.

Todays price action just blew by all the angles that I have drawn in the past.  This suggest that there are optimism everywhere.  Never base your analysis on news.. Why?  Well a few months ago a Taper was bad news and any talk of it dropped markets.  Todays decision however came with a surprise Taper... and what do you know markets rallied.  "It's all about time folks".

MT: DOWN
ST: UP

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6 comments:

  1. Sonny18 December 2013 at 20:01

    Hi MP, in the chart, the SPX$ has broken the resistance level projected from two previous tops. However, the globex SP mini still not managed to break that resistance level. Do you think it could be a false taking out or the globex should follow SPX$ to break out soon. Thanks

    ReplyDelete
    Replies
    1. MP18 December 2013 at 21:56

      Last week when the ES took out the lows and the SPX didn't was suspicious. Then today the SPX took out its low but the ES didn't. Now the SPX did make significant highs but it has not broken that 1812 mark. This is the key price in my opinion. For now our Short-term is pointing up. No sense in fighting the trend.

      Delete
  2. Unknown18 December 2013 at 20:30

    spx going new highs, i got hammered for betting against the market

    ReplyDelete
    Replies
    1. MP18 December 2013 at 21:58

      Hopefully they were not options. I believe this market will soon see a significant fall or at least a needed correction.

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    2. Unknown19 December 2013 at 00:54

      thats what i been hoping for in the last 5 months, and now i got burned so bad.....i thought the taper would be a hit for the market, but taper slowly isnt a bad news for the market......i do not see anymore danger for the market in untill the us government issue resurfacing again in jan 2013.....untill then, we shall see

      Delete
  3. Sonny18 December 2013 at 21:01

    You mean the market should go up anyway?

    ReplyDelete

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