SHORT TERM: consolidation day, DOW +26
Overnight the Asian markets gained 0.2%. European markets opened flat and lost 0.3%. US index futures were relatively flat overnight as well, and the market opened one point above Friday’s SPX 1841 close. After that the market continued its pullback. At 10am Pending home sales were reported higher: +0.2% v -0.6%. By 10:30 the market hit SPX 1839, then bounced to 1841 by 11:30. After a retest of SPX 1839 by 1pm, the market bounced back to the opening 1842. Then a pullback into a SPX 1841 close ended the day.
For the day the SPX/DOW were mixed, and the NDX/NAZ were -0.10%. Bonds gained 9 ticks, Crude lost $1.10, Gold slid $17, and the USD was lower. Medium term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Nothing on the agenda for the last day of trading of the year tomorrow.
The market opened one point higher than Friday’s close. Then went into the narrowest trading range in 17 years, (three points), for the rest of the day. Not much to add to the weekend update. The market has only pulled back six points, thus far, from its SPX 1845 all time high posted on Friday. While it did look like there was some profiting taking today. It wasn’t enough to move the averages much.
Short term support remains at the 1841 and 1828 pivots, with resistance at the 1869 and 1884 pivots. Short term momentum dropped below neutral, but ended the day there. The short term OEW charts remain positive with the reversal level now SPX 1833. Happy New Year!
MEDIUM TERM: uptrend
LONG TERM: bull market
Looks like they want to peg 1850. one way market in 2013
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Dont see gap on 20th
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The rut and ndx have gaps on 12/20, 60 min, if this turns out to be a correction abc then they could fill. Happy New Year to everyone and may we all prosper. TY Tony.
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I must have some poorly filtered data, please let me know if I am the only one with the gap. http://screencast.com/t/rBL7m3rGfFX
http://screencast.com/t/JxxnelFNSbc
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Gap on Dec 23 iwm 113.72
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Date #Days Price Size of rally/decline
02/01/2013 1426
19/02/2013 48 1531 105
26/02/2013 7 1485 -46
11/04/2013 44 1597 112
18/04/2013 7 1536 -61
22/05/2013 34 1687 151
24/06/2013 33 1560 -127
02/08/2013 39 1710 150
28/08/2013 26 1627 -83
18/09/2013 21 1729 102
09/10/2013 21 1646 -83
29/11/2013 51 1814 168
18/12/2013 19 1768 -46
27/12/2013 9 1845 77 ongoing
SPX, the main highs/lows of 2013.
Take just the rallies, the average rally is 131 points. We’ve done 77 so far. That simple analysis implies a target of 1899 for this rally.
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Don’t forget to add your Birth date and multiply by your age. Sorry Bobby but I find that type of analysis totally meaningless.
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clue me in…….using my birthdate and age would be helpful……how so?
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6 times out of 6 in 2013, the key rallies have been more than 100 points. we’ve rallied 77 so far on this one.
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HAHAHAHA! Yeah, does it to me too. Like bedspin.
Simplify.
M
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If we are going to get that long waited correction on the spx, we should look for a 38.2% Fib retrac.
This means 38.2% of 771 (1074 to 1845) = 295 points. (that’s only a 16% drop). At this point, the expected selloff should find support at 1550.
Happy New Year to all.
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We shouldn’t see anything close to that type of correction until Primary IV, which could be months from now. Happy New Year!
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Sorry, but feel the need for one more post. If you haven’t heard, HP plans to cut even more jobs than originally thought (or at least, announced). I think many companies are going to do this, and given, as posters already know, Housing is directly correlated to Jobs, I think Job cuts are the biggest danger to all assets in US markets, not like 2008, but just due to lack of purchasing power, even if others (foreigners) come in and pay cash, they’re buying at least at a 20% premium (maybe more) than they could in a years time. GL All. I want a Townhome/Condo when I retire, but will wait until prices are bottoming (2018ish?), due to overbuilding (is the habit here in Texas), and exhaustion of cash buyers.
Bye for now!
Simplify.
M
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In the spirit of simplification, have you given any thought to buying a piece of land and building your own straw bale house? Just a thought, Happy New Year!
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No smart-mouth, but happy to sell you beachfront in Kansas City, KS or MO. Yes, there are 2 KC’s!
Simplify.
M
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BTW, I’ve owned 2 money pits already. Next pit will be at market bottom or won’t be bought, AND will Baby-boomers in primary residence. Might be in Colorado…
Simplify.
M
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HAPPY NEW YEAR, TONY !!
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To Tony and all here:
HAPPY NEW YEAR AND DON’T FORGET… PARTY LIKE IT’S 2014 ALREADY (1929 ? 😀 )!
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a blow-out move to spx 500 – 1870’s would satisfy me 🙂
so, come on! I want the see the power of New Year’s Eve Spirit!
1870 today! 🙂
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Just wait ’til Thursday. 😉
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McM, it looks like crude completed a 3 up to $100.75 (a=.618*c) and is now headed down. However, I’m not convinced the 2nd wave is over since wave 1 took 13 weeks and we are only in week 5/6 of retracement. Possible 3-3-5 to $103-$105 in another 4-6 weeks. Short term could be heading back to $92 in a 2nd 3 wave structure. My best guess as of now anyway.
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Mornin’ bj. I think the $102-ish is all it’s going to give, regardless of the week 5/6 retracement. I expressed an opinion to/DRiley when everyone was trying to boost the price weeks ago; that to place the retrace price at possibly as high as $110 was not something in which I wanted to involve myself. I’m relatively new to CL, but am definitely interested if I can get at least a $10 swing out of it, using unadulterated math. I’ll share what I hear and see, please as you always do, continue to share with us. Much thanks and Best of Luck (BOL) to You.
Simplify.
M
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It does not have the right look IMO if it’s over at $101, but being short right now is the correct trade regardless.
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Gold should plunge today currently at $1201. Looks like Minuette 3 of minute 5 underway with initial target of $1166. Final Bottom should be near $1160. Cheers!
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bj, considering best guesses of price of GLD at it’s low when gold nears 1160? 1160 is a bit lower than I had originally thought… but, it’s gold. I think GLD puts is the only way to work this (for me), so looking for low and retrace high, and timing & price of GLD of that retrace. GL Everyone!
Simplify (trying…).
M
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