Commentary: Paul Ebeling on Wall Street, Prediction Edition
$DIA, $SPY, $QQQ, $VXX
The market will dip (negligible), pullback (-3 to 5%), correct (-8 t0 11%) or keep running ahead.
Some if not many investors are afraid in here, as they have seen dives and deep dives before. Savvy traders respect the Southside and insure keeping, what they made running North.
They also play the Northside while it is making great money during this Trump Rally, always being to avoid picking up the pennies in front of the fast train.
This move could end Monday if the new monthly money getting shoveled into the market ended last Friday.
Do not see that yet, Ok the charts are extended, but nothing Friday showed me that The Trump Rally is coming to an end.
Shayne and I are watching the volatility, breath and volume carefully in here, but rally’s do not end when there are lots of very good stocks in very good position, if they can make the moves, they make
the moves and the rally extends.
We will see more Northside action this week if the money comes into the market.
The important earnings reports this week are from: AMD, FB, MSFT, AAPL, AMZN, BABA, GOOG.
Notably these are stocks that triggered the October break North into the this leg of the Bull’s run.
Given their runs, we expect good news to drive them not just higher for a day, but into the next up leg.
We like all professionals are concerned about a/the Top, but are also looking at new Northside plays because the leaders continue to lead and continue setting up and rallying.
So, as long as that action happens, The Trump Rally will expand, and as long the positive sentiment remains in charge it is smart to be there, too.
Remember, pay attention, it is your money and your responsibility.
The Bulls Vs The Bears
VIX: 11.08; -0.50
VXN: 17.52; -0.73
VXO: 11.47; -0.04
Put/Call Ratio (PCR) CBOE: 0.79; -0.01
The Bulls Vs The Bears
The Bulls backed off the cycle high, and the Bears ticked higher, but are still at 30 year lows in here.
The Bulls are at 64.7 Vs 66.7 last
The Bears are at 12.8 Vs 12.7 last
Support and Resistance
DJIA close: 26,616.71
26,000 from Jan 2018
The 20-Day EMA: 25,740
24,835 from Dec 2017
The 50-Day EMA: 24,923
23,602 a Nov 2017 high
23,608 a Nov 2017 high
The 200-Day SMA: 22,564
S&P 500 close: 2872.87
2808 from Jan 2018
The 20-Day EMA: 2782
2751 from Jan 2018
The 50-Day EMA: 2710
2694 a Dec 2017 high
2597 the Nov 2017 high
2569 the upper channel line from 9 March 2009 uptrend channel
The 200-Day SMA: 2523
NAS Comp close: 7505.77
7300 from Jan 2018
The 20-Day EMA: 7254
The 50-Day EMA: 7049
7,000 from Dec 2017
6914 the Nov 2017 high
6796 a Nov 2017 high
6720 the Y 2016 trendline
6641 the Oct 2017 high
The 200-Day SMA: 6494
Have a terrific week.