The stock market is at a very critical pivot point which I feel will
generate opportunities in December and for the first quarter of 2013.
Trading with the trend is not always an easy task. It is human nature to
predict and jump to conclusions and usually it's better to trade with the
trend no matter what your emotions are telling you. The current trend is down
and I stick with that until we are proven wrong.
If you carefully analyze the charts below you will understand where we are
trading in the market and what the risks are at this point. The question is
are in the middle of a trend reversal back up, or is this just a bounce
within a down trend? Either way, any pullback this week should be
aggressively managed to lock in gains and tighten stops because it could go
either way and you do not want to be on the wrong side of the table.
The chart below shows the US dollar index 4 hour chart. It looks as though
we should start to see a bounce this week and that should put pressure on
stocks and commodities.
The SP500 (SPY etf) below that shows my analysis and key price levels. I
took a short position on the SPY Friday afternoon as I feel a pullback is
imminent. That being said, all I need is one big down day and I will be
pulling money off the table to lock in gains and tighten my stop.
If a detailed educational lesson on stock market cycles read my mini
course here: http://www.thegoldandoilguy.com/downloads/COAAROTB.pdf
My trading charts make reading the market simple, quick and precise so if
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