I expected the rally in the NasDaq this week because of the weekly bullish reversals elected last week.
Honestly, it was a hard to hold the rally because just didn’t believe it would go higher, but it did luckily. Normally I would be fine but I entered at a higher price than I feel comfortable. But… with the rally close to the next reversals it is time to take some profit on this rally.
Possible January 15th Weekly Low
This month is a panic cycle which could rocket higher if we elect 16,565 at end of December. On the other end, I will be watching Novembers closing price to see if December closes below it.
Regardless, January is set to be a turning point for the month on NasDaq, Dow Jones and SP500.
Below is NasDaq Futures
We elected some daily bullish again, so we can higher on Wednesday. But we have turn point this week and we header higher. This week could be a high close like we had Today (Tuesday 12th) with possible turn down for a few days (pink vertical lines) into green vertical line low bringing us back down to the open for the panic cycle this month (whipsaw up then down).
Just like the Dow Jones, January is turning point and waiting patiently with some bearish shorts being played starting today with low risk exit on rally above reversals. Re-entering around the 15656 monthly if need be for a low risk short. LONG TERM I am long, but willing to play some downside here.
Below is Dow Jones (DJI)
Notice the green lines resistance above. This week is turning point and watching to see if we close below those green weekly and monthly reversals. If so, that could show time’s up, but the timing target is January. Patience.
Summary:
- Expecting a rally either into December or January
- Fake out rally to highs (which have this week)
- Then January turns down
- Expecting January 15th weekly low
Correction into January 15th Is Bullish for 2024
If the above plays out, then the January 15th will be interesting to go long and where support holds. Till then long term we are bullish, but January is to be watched on the short term for a correction.
Recent Longs:
- CSCO
- DBO – Oil trade for 2024 Conflicts (they will flush weak hands)
- BMY — Health Stocks heading higher???
Recent Shorts:
- GLD (exited today)
- DIS
- QQQ (testing the waters after Fed meeting LOL!!!)
- DIA (testing the waters from Friday’s close)