Weekends are for thinking and I'm thinking that next week could be moving to the downside for the Industrials. As you can clearly see from the chart below, the average seems to be bouncing between 14,700 and 15,700 so those are the support and resistance levels. At the Industrials approached 15,700 once again, it fell off once again. The RSI bounced off the 70 mark, the Histogram turned lower, the MACD is looking like it's about to cross it's signal line, and the ADX is trying to converge and possibly cross. None of this bodes well for a move up in the market. I'm looking for the market to pull back here.
I don't have a crystal ball and I can't tell the future, but I can read stock charts. I'll be watching closely because these things can turn on a dime but investing is probabilities and trends for me. Whatever your strategy is I hope you're doing your homework this weekend and you are successful in all your trades this week. Good Luck and Good Trading.
I don't have a crystal ball and I can't tell the future, but I can read stock charts. I'll be watching closely because these things can turn on a dime but investing is probabilities and trends for me. Whatever your strategy is I hope you're doing your homework this weekend and you are successful in all your trades this week. Good Luck and Good Trading.
DJIA Chart - (1 Nov 2013)
 One week later |  Two weeks later |  Three weeks later |
November 23, 2013.
As you can easily see the market didn't retreat from it's highs of three weeks ago but instead continued to climb even higher. This is confirmation that you should never jump out in front of a trend and predict a reversal. Even though it looked like a reversal was evident, it still hasn't occurred three weeks later. A reversal will surely happen like night follows day but never predict what the market will do -- just follow the trend. And as you can see here, the trend in intact until it isn't. Trend follower never find the exact top, they just follow the trend only after it is firmly established.
As you can easily see the market didn't retreat from it's highs of three weeks ago but instead continued to climb even higher. This is confirmation that you should never jump out in front of a trend and predict a reversal. Even though it looked like a reversal was evident, it still hasn't occurred three weeks later. A reversal will surely happen like night follows day but never predict what the market will do -- just follow the trend. And as you can see here, the trend in intact until it isn't. Trend follower never find the exact top, they just follow the trend only after it is firmly established.
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