Tightly Coiled Market at All Time Highs Sept 15

Are we having fun yet?

The S&P 500 and Emini (@ES) trade shy of the full 2,500 target and we’ve seen Range Days develop underneath the key resistance (target) high.

Let’s chart today’s @ES Fibonacci Grid in play:

Emini @ES Intraday Trend Reversal

Fibonacci Retracement Levels will NOT come into play if buyers trigger a breakout (and create a Short-Squeeze) so be prepared for a bullish breakout beyond 2,500.

Otherwise we remain neutral/cautious into the all-time highs.

Should the market actually pull back (can it actually do that anymore?), look toward your Fibonacci Levels above for pullback targets.

Come join us to learn these tactics (beyond this simple/quick update) and have an evening game plan you can use effectively for the next trading day.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”


Afraid to Trade.com Blog

About Time?

Well, the latest “North Korean ICBMs are coming!” selloff lasted all of about ten minutes. As I type this now, the ES is freakin’ GREEN, as are most stocks. Looking at the intraday chart of the ES below……..and I realize I’m not an unbiased source………..it just SEEMS to me it’s about time for a selloff […]
Slope of Hope

Preparing for a Pullback in the Dow Jones at All Time Highs

With the Dow Jones Index surging seven days in a row straight up, we’d be totally crazy to plan for a pullback instead of buying, buying, buying a rally that’s never going to end… right?

Right?

Let’s at least PLAN for the potential (likely/inevitable?) pullback yet to come in the Dow and it could start today.

Here’s the Dow Jones Daily Chart breaking above 22,000 for the first time ever:

Dow Jones Daily

We have a “Perfect Pullback” in a rising market to the 20 day EMA (green) in late July.

From there, buyers surged the market higher day after day all the way to the current high.

Tuesday and Wednesday’s sessions gave us doji reversal candles ABOVE the upper Bollinger Band which – in normal times – is a sign of caution.

Before we step inside the current price action, let’s take a look at February 2017.

We saw a similar pullback to the rising 20 day EMA ignite a bullish fire that sent the Dow surging toward – then above – 21,000 in a roughly 14 day straight-up rally (we’re only at seven now).

When all looked bleak with similar reversal candles into 21,000, we saw a HUGE bullish gap-up into 21,200 before price spent the next two full months pulling back in a retracement phase.

Draw comparisons from this period to what we’re seeing now.

Let’s step INSIDE the price action to the 30-min intraday chart:

Dow Jones Intraday Reversal

We see the end-of-July non-stop bullishly gapping, stable rally from 21,500 to 22,000.

Momentum (and volume) were strong in the beginning of the rally which confirmed the bullish price action, suggesting even higher prices likely yet to come (and they did).

As those new price highs toward 22,000 developed, momentum began declining (diverging) on both Tuesday and Wednesday.

We’re seeing low/flat momentum readings right now into the critical 22,000 pivot.

Simply stated, you should at least PLAN for a Pullback/Retracement and be ready to take profits or (aggressively) short-sell it to trade a departure from 22,000.

If February is our guide, then we could be in store for one more bullish burst ABOVE 22,000 before the proper pullback occurs.

Either way, get ready to adjust your positions and plan your next move away from 22,000.

Afraid to Trade Premium Content and Membership

Follow along with members of the Afraid to Trade Premium Membership for real-time updates and additional trade planning.

Corey Rosenbloom, CMT

Afraid to Trade.com

Follow Corey on Twitter: http://twitter.com/afraidtotrade

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).”


Afraid to Trade.com Blog

Time for a robot assistant up in the dome light of the cockpit?

“Crew Forgets To Raise Gear” (Avweb) describes an Airbus A320 flight where a robot could have helped:

An Air India flight was diverted last week because the crew didn’t raise the landing gear. There were apparently lots of clues that something was terribly wrong but the A320 crew pressed on, climbing to 24,000 feet instead of the normal 35,000 to 37,000 feet and reaching only 230 knots as the plane gobbled huge amounts of fuel to beat the drag of the wheels. About 90 minutes into the flight from Kolkata to Mumbai, the fuel state demanded a diversion to Nagpur. They reportedly didn’t realize their error until they went to drop the gear for landing.

Imagine a camera up in the dome light watching the same instruments and indicators as the pilots. The robot could use the camera image to ask “The altimeter shows us at FL240; the FMS shows that we’re still 400 nm from the destination; are you sure that you need the landing gear down?”

Obviously this would be more useful for single pilots and non-professional crews, but even the best pilots can make mistakes after a few days of airline flying.

Related:

Philip Greenspun’s Weblog