Hey Folk
We are approaching the seasonal low due in end of Oct
which mean traditionally by end of October the market will rise. This time we
have Fed meeting on the 27 and 28 of October, maybe this will be the catalysis.
Also the earning season is in again, maybe this will lift the market up.
The
COT data shows heavy buyer for many weeks several weeks ago. They are still
heavy buyer last week. If we map them together, probably we have some hint on
where the market is going. However, what I do not like is we are still in a
down trend. So be nimble on the long position
I had spent every on finding a better way to determine
trend in a faster way with high accuracy. However, I have not found one that
has a higher hit rate and also a huge lift off when the trend change than the
current one I am using. For sure my current methodology do not allow me to
catch the bottom and the top. I also believe there is no such method that one
can identify the top or bottom and profit from the market instantly and
handsomely. Alright let get into the market.
Another things to look out for in the market is crude
oil. Crude is a indicator of how well the economy is doing. A low price in
crude oil mean the economy is not doing well. I mean economy and not the stock
market. In the present world they are not in sync anymore.
Below is the weekly chart of crude oil
Notice where the cursor is at 53.95. I think crude oil is
going to have a rebound to that range. Which mean to say high 53 to low 54
level. Also notice that crude oil trend is down. This is a deeply entrenched
downtrend. So be nimble on your long position, if you wish to do a counter
trend trade.
Stay the same in your funds. There is nothing to do yet but seem better than last week.
Short and sweet
