Category Archives: Forecasts

Possible Retreat of The Rally

Since the Fed’s verbal intervention about a possible rate cut, the market rebounded from the 38% retracement level on June 4th.  The Sp&P 500 rallied 5 days for a total gain of 6.66% from high to low.  Then it bumped into resistance around 2900 level.  The volume of the five-day rally has not been impressive though.

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Can the Fed Alone Do The Heavy Lifting to New Heights?

With a hint of rate cut, the market immediately pivoted to the upside.  Last Tuesday, we sent out a member blog that detailed the reasons why we had a first valid rally attempt after last Tuesday’s close.  Now the question is when will the May high be taken out?

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The Power of Price Reversal Action

With the recent development of blacklisting the Chinese tech giant Huawei, the scope of the trade war has expanded much larger than originally thought.  The semi-conductor sector has been hit really hard as China is the largest buyer of the U.S. made semi-conductor products.  This action against Huawei sure does look like an existential risk for Huawei.

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Embrace The Much Needed Correction

The market has been so bullish since the December bottom that even with the worst kind of announcement about the trade war, it refused to believe that the reality is finally here.  The major indices suffered only minor damages.  Last Friday the market had an intraday bullish reversal indicating it should go higher on Monday.

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It’s About Time!

It has been 86 trading days since the December 2018 low.  The S&P 500 index rallied a total of 25.89% from low to high.  The high occurred on Wednesday May 1st after the Fed meeting conference.  After the initial 1.8% drop on Thursday, it rallied back on Friday based on good employment numbers. 

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