Nov 9th – Storm Winds In The Future(s)

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Sometimes when we are looking out over the horizon, we see what looks like a storm rolling in.  Basically there is nothing that you can do, except to be prepared. It is normal to wonder, "Will the winds of change do a lot of damage?"  "Will they just be a moment of unsettled turbulence with minimal damage?"  "Will we have to pick up an abundance of scattered debris, or will this just pass by?"

We have been taking positions in the Precious Metals markets, so this storm may be just like riding the rapids for most of us,  if things do not change by the morning. The General Markets, on the other hand,  are taking a good hit tonight for those trading in that area. We just have to watch how things settle after the storm surge passes.  Let me show you why...

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Where Are We Now?

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So far things are playing out in ways that we anticipated. This should make the trades easier to enter. Lets review the Monday action in the markets.

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SPX OCT 31 - Using cycle analyses, I have been expecting the SPX to drop into a trade-able low. The circled area was the expected target, a higher low and not an outright crash. 

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SPX - Nov 4th, This is a gravestone doji and quite often acts as a reversal candle after a sell off. Timing was correct and we were within that circled area.  We would look for a reversal.

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SPX Nov 7th -  Monday definitely saw a strong move out of the lows by all indexes.  The SPX broke above the 10sma and in the past, day 1 was not the end of it. I expect follow through and then a possible back test of the 10sma. We saw this in Februarys ICL and Junes ICL. 

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WEEKEND REPORT – CONFIDENCE

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Welcome to the weekend report. It is another long report with roughly 30 charts, to build up your confidence. So grab your coffee and lets get right to the charts!

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SPX - I have been expecting this dip and my target area shown here has been met. Do we see signs of a bottom?

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SPX - Yes, this is a gravestone doji sitting on the 200sma. This could be the dcl, because the ' cycle-timing' is right. We wait for a swing low and confirmation before entering, since it can drop below the 200sma as a shake out.  Look at the selling here, 9 straight days of red high volume. THAT will change sentiment from Bullish to " I dont want to be long".  We may get  post election rally no matter who wins, and everyone will then say , " SO & SO won, and that was good news to the markets."

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