The market is still pulling back from late December rally, and the indexes are sitting at key technical levels as we head into earnings and Options Expiration. A break of these technical levels, and we could hit the December lows and lower.
Although many are calling this a bottoming process, I am intrigued by the Elliot Wave theory, which calls for a 5th and final wave lower before putting in a bottom. Check out the weekend post at Amateur-Investors. He’s been calling this setup for a while. They used Elliot Wave patterns last year to predict oils big decline, which few were predicting at the time.
I plan to make some changes to this blog, especially in the frequency of posts. I have been making nightly posts for almost a year now, with the exception of a couple of vacations. It’s taking a lot of time, and this is a market I want to trade less in, not more. I also need more personal time. So I will probably cut back on the frequency of posts until we get a new bull market, or until the 50-Day moving average cross over the 200-Day moving average on the daily charts of the three indexes…which is not happening anytime soon.
What I will probably do for now is have a post on Sunday night that lists all of the stocks that could be setting up for the week, and follow-up on Wednesday with a post with additional charts setting up. After all, I started this blog to keep me disciplined in finding charts every night, but if there are few setups and few trades, there is no need for me to post. So there may not be a post tomorrow.
I will be looking at these for mostly day trades and will need heavy volume as confirmation. Otherwise, I will pass. Cash is king, so I will be picky with these stocks.
See you Wednesday night, unless I find some other setups before then.
Good luck and good trading!
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