Hey folks, just wanted to share an observation I made today and my hypothesis that the market is at an adjustment point and working out where it’s going to go next. I share one single chart for your viewing enjoyment (click for larger view).
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Here’s my chart of the VIX. I’ve put a blue dot at the peak of each spike. One thing is clear: the kind of market I enjoy (panic, mayhem, chaos) is going to be happening with more frequency than in the past, as illustrated by the rounded rectangles.
Times are changing, folks. The forces of evil (Yellen) will succumb to the forces of light and goodness (Slopers). Lay waste to the darkness. There will be blood.
With price approaching a major support level at 0.600 on this 3-year Daily ratio chart of the SPX vs SSEC (and diverging RSI), and with price essentially vertical on the 3-year Daily chart of the SSEC (and diverging RSI, MACD and Stochastics indicators), I’d say that we’re close to a blow-off top on China’s Shanghai Index. (more…)
Here’s today’s swing-trading watch-list:
Long Celldex Therapeutics (CLDX)
As I suggested in my post yesterday, a weak open snowballed into a bigger move down and my target rising wedge support trendline was almost touched at the low yesterday afternoon. That should be hit today or tomorrow though we might see a bounce first to establish a double bottom. I’m expecting wedge support to hold or to be broken only slightly, but if we see a conviction break then it’s well worth noting that there is a double top setup here that would target the 1851 area on a break below December’s low at 1972. SPX 60min chart: