The stock market is at a very critical pivot point which I feel will
generate opportunities in December and for the first quarter of 2013.
Trading with the trend is not always an easy task. It is human nature
to predict and jump to conclusions and usually it’s better to trade
with the trend no matter what your emotions are telling you. The current
trend is down and I stick with that until we are proven wrong.
If you carefully analyze the charts below you will understand where
we are trading in the market and what the risks are at this point. The
question is are in the middle of a trend reversal back up, or is this
just a bounce within a down trend? Either way, any pullback this week
should be aggressively managed to lock in gains and tighten stops
because it could go either way and you do not want to be on the wrong
side of the table.
The chart below shows the US dollar index 4 hour chart. It looks as
though we should start to see a bounce this week and that should put
pressure on stocks and commodities.
The SP500 (SPY etf) below that shows my analysis and key price
levels. I took a short position on the SPY Friday afternoon as I feel a
pullback is imminent. That being said, all I need is one big down day
and I will be pulling money off the table to lock in gains and tighten
If a detailed educational lesson on stock market cycles read my mini course here: http://www.thegoldandoilguy.com/downloads/COAAROTB.pdf
My trading charts make reading the market
simple, quick and precise so if you want this type of analysis and trade
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11-25-2012 4:44 PM