After 2 days consolidation, the market shots up again this morning. Actually, the leaders started moving up early yesterday. I have observed that yesterday, there were very good option movements, i.e., huge percentage movements on those leaders. Today, the option movements are slowing down.
I see it is a good confirmation/follow-through. But meanwhile, keep an eye on the mid-term top. I still expect it testing the previous bottom. But one thing is sure that previous low is the low.
In DQ, many are daily traders. But chuxue/QiuZhiHaoYue is outstanding, here is the his take for Dow:
"The reasons lead me to believe that we are having a V not a W are:
Compare with Feb-Mar correction, what we just had is much steep and deep;
A W will require a center peak point near 13600-13700 level, and that will be a set up for a possible H&S pattern;
The best possible move would be: print a bull flag pole in next 3 days touching 13600; then spend the next week to complete the bull flag below 13600, between 13400 and 13600; then shoot another flag pole to 14100+, DJI needs to take out 14100 to avoid that H&S pattern, after that a falling wedge from 14100 to 13700 will be a good consolidation move to entering into year-end rally.
This is indeed not very hard to do at this point, if you consider that CAT/UTX/MO/XOM all bounced off the 200 EMA and ready to set new highs.
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