Oh Baby! (In More Ways Than One)
This market is strapping
on the armor and preparing for battle. As I run through the various sectors
and indices, I see a common thread. “What thread is that?” you ask. Fibonacci! Almost
every chart I’m looking at is facing key time and price parameters. Layman’s
translation: The market is making a major decision right now. Do we respect
the support zones and make a reversal to the upside, or do we ram right through
this support zone and accelerate to the downside?
Below is a sampling of what
I’m looking at. Here are the focus points:
1) All are facing Fibonacci
price support zones.
2) All have formed a pattern into our price support zone which typically helps
solidify the possibility for reversal.
3) All are also facing key Fibonacci time cycles that are saying it’s time to
reverse to the upside.
Now for the
game plan:
1) I’ve taken
profits on shorts and tightened stops.
2) Now, I’m looking
for possible triggers to take long trades against these price support zones.
3) If these support
zones do not hold then my vote is for lower lows across the board. Because if
these markets fall through pattern, price support, and time cycles, they are
telling us how extremely weak it really is out there.
4) Don’t be taking
long trades without a trigger!
So, pull those
belts tight, gang, we’re about to experience some turbulence. Oh baby, is it gonna be a ride. Speaking of
“baby”…I’m the proud daddy of a baby girl born this
weekend. Avery was 9 lb. 12 oz. She was 22 ¼ inches long and born on September
21 @ 4:49 am. Our family is doing great.
In fact, I was thinking about this
over the weekend. Didn’t Dave Landry have his baby at the peak of this market?
What if the Hobbs’ baby marked the bottom. Dave and I concurred that we have
a new major market indicator. THE LANDRY/HOBBS C.B.I. Basically short the market
when Landry has a kid and cover/go long when Hobbs has one. The Child Birth
Indicator. (Please do not trade this indicator as we have not put it through
the proper testing procedures. I’ll keep you posted.)
Good night!