Commentary: Paul Ebeling on Wall Street

Commentary: Paul Ebeling on Wall Street

$DIA, $SPY, $QQQ, $RUTX

The market’s focus this week: new money, earnings season, and the jobs report Friday.

September was not a Southside month this year, solid but not huge. So many participants are expecting a selloff in October.

It may happen, though it did not happen last year after a solid move higher in September. We saw no Southside action until mid-November and it was a dip only

Then we saw an impressive Bull run higher into late January.

Shayne and I believe what happening now is Bullish, and will become clearer as the market moves through Q-4. We see it as similar to last year with the focus on big caps.

Last year in Q-4 we said buy FANGs and playing them to the exclusion of most other sectors. Thus, marking huge gainers, and playing other opportunities that emerged as sidelined money re-entered the market and bought just about everything in sight.

You will remember that many pundits and talking heads in the media said: the Bull run was done. Then it kept climbing that wall of worry forcing that exited cash back into the market, driving stocks to amazing gainers for us.

We believe that a similar action could very well be in-store this year. We see good money to be made in Q-4 this year,

The Big Q:  Will the market decides to sell some in October to reset for a run to year’s end?

The Big A: The recent history tells us that does not have to happen.

With Fed Chairman Powell’s comments this past week asset valuation worries hit worried traders. And again the pundits and talking heads are broadcasting that a selloff is coming and believers may try to sell the market and cause an October dip.

Many market leaders improved their positions and patterns, that lends credibility to HeffX-LTN’s thesis that the market move will again concentrate in fewer names toward year’s end.

Then again it may not and again everything will rally.

As always we will be there analyzing the patterns, and ready to take advantage the good set ups when they break.

And always remember, take what the market gives, do your own work and deploy your money responsibly.

 

The Bulls Vs The Bears

Sentiment Indicators

VIX: 12.12; -0.29
VXN: 16.58; -0.17
VXO: 11.30; -0.38

Put/Call Ratio (P/CR) CBOE: 1.06; +0.12

The Bulls Vs The Bears: Bulls continue tapping at 60.0 the mark that leads to declines. The Bears not moving higher now.

The Bulls are at: 59.0 Vs 57.7 last

The Bears are at: 18.1 Vs 18.3 last

 

Support and Resistance

HeffX-LTN’s US Major Stock Market Indexes Technical Analysis for the Week Ended 28 September 2018

Date Symbol Price Technical Analysis Support Resistance
28 September 2018 QQQ 185.79 Bullish (0.33) 182.83 186.74
28 September 2018 DIA 264.4 Very Bullish (0.52) 262.83 267.55
28 September 2018 SPY 290.72 Bullish (0.35) 290.67 293.58

 

Have a terrific week

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Paul Ebeling

Paul A. Ebeling, polymath, excels in diverse fields of knowledge. Pattern Recognition Analyst in Equities, Commodities and Foreign Exchange and author of “The Red Roadmaster’s Technical Report” on the US Major Market Indices™, a highly regarded, weekly financial market letter, he is also a philosopher, issuing insights on a wide range of subjects to a following of over 250,000 cohorts. An international audience of opinion makers, business leaders, and global organizations recognizes Ebeling as an expert.

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