STOCK MARKET RALLY
I decided to kill my search engine traffic by posting a positive title. For those of you who constantly are looking for the world to end and surf the web for negative stories, take a look at the huge rally you have once again missed and will always miss until you get more balanced. Regardless of what you think of our move to socialism or any of the other things that are going on, the market is not confirming your pessimistic views yet.
I too think this will end roughly at some point but for those of you who read the Newsletter, I have kept you on the correct side of things thus far. The reason for that is that the models I use for big picture trends are not based on some short term emotional opinion I might have from time to time. They are based on what I consider to be fundamental things that determine trends. At this point they have not changed. Will they in the future, perhaps, but we don't know that yet.
Stop surfing all these negative web sites, they will cost you money even if they make you feel good by supporting your fears.
For those who do see every day as a sell, the next chart gives you some hope for tomorrow if we happen to break today's low.
The classic trap pattern is at hand here if we happen to take out today's low tomorrow. It may be long shot but you never know. I personally don't think these patterns are very good when you have a trend this strong and especially in the ES. I am short in my mechanical system as I stated last night that I had signals for today. The position is currently a couple of points upside down so we will see where it goes. It is a system trade so I don't have an opinion on it one way or another. I mentioned patterns like this normally get resolved to the up side and that is what has taken place thus far.
For now the trend is up on all time frames so I am not going to fight it with any discretionary trades. If my systems tell me to sell I sell and vice versa.
Have a good weekend