The quick puff to 2300 price target cut the 3rd daily cycle short to 14 days. The precise rejection from 2300 price level shows market’s unanimous agreement about the price target 2300. 2300 was a cluster price target from many different time cycles. The market was range bound from 12/13/2016 to 01/26/2017. It looked like it was heading
On /1/24/2017 it took out prior swing high at 2282.10 and made a new high. This action extended the beta cycle phase on both the daily and weekly cycle level. We suspect it will eventually crawl to 2300ish level before any significant correction. The buy the election and sell the inauguration trade was too obvious and too easy. The market is doing
On 01/24/2017 before the earnings announcement, AMD came out the weekly cycle bottom by taking out 10.25 and closing above it. It has been in the bottom timing band for a long time. The precise action of taking out the prior swing high at 10.25 confirmed the completion of the weekly cycle bottom. We advise long at
It has been more than painful to short BAC. We move our stop loss to 22.93. If 22.93 is taken out, BAC is coming out this cycle. Shorts should be liquidated.
Due to the breaking down of the general markets, GDX jumped over 23.63 fence. Apparently gold is a competing asset class of the equities for the time being. GDX miner stock is reflected in the rise of gold.
