26 Sept 2014

The ST indicator has turned UP.  But overall the fact that the ST turned up was not surprising as volatility comes into play.  There is indeed tension in the markets and there are some who are watching very carefully on how the patterns develops in the next week to come.  The daily 75ma needs to be broken again to sustain any move lower, but the cycle analysts are looking for a low today so we could see just that as the ST turned UP.  The next critical date for some is the Oct 3rd or 6th, and since that is at the end of the trading week next week or beginning of the next.  I would assume from our count that a sideways pattern could emerge.  Mind you that these dates have to be marginalized with  +/- a day or so, and that any EW pattern suggested are just an opinion.

If the market breaks, there will be no support until the 1920-1900 area.  Since we are in Bear Mode, we should be aware of this scenario.  It is times like these where you have to say to yourself which time frame to trust or follow.  But it is in the investors preference really.

My rule is that I am always playing the direction of the ST since it fits my trading style, and based on that direction I have to look at the trends of the lower time frames and trade in that direction as well.  I know the market is at a high right now and since the ST is on an UP Trend, I will be sitting it out until it turns.  Note that the MT is on the down trend as well.  So this should solidify which side we need to be on even if its a lagging indicator.  Sitting out does not lose anyone money...

I have included this link to what CRAMER was saying on the 24th (Wed.) not because I believe in his B$hit, but more of what the common investors are thinking right about now..  So what happened to the market?  As you know yesterdays drop was a pretty good one, so you can look at this on a day to day basis or a medium to long-term basis, but if you don't know your trend then you will surely be lost or losing money... Too BULLISH and so much BULL$H!T.  Don't predict but react to the market.


MT: DOWN
ST: UP
PA: DOWN