Saturday, November 24, 2012

November 2012 update III

The market was up about 60 points from its low.  It recovered almost 50% of its correction in a very short period.  We can be confident this pace "up" can not be maintained, else the market would double in a very short period....

I took a look at the amplitude of the 22TD cycle (DPO(11) daily chart) and found out the amplitude of this short trading cycle was around 60 points.  So we have fulfilled upside expectations (and then some) for this short swing cycle.  Therfore, I expect the upside potential is limited the last week of November and think the possibilty of a down week are good.

Here is a visual of the short term outlook:

Might see some more up early week, fade by end of week??  GL traders - wrote covered calls on my RWM, hopefully will buy them back for a nice profit this week....


  1. Hi,

    Tks for the update.
    R u still expecting lower lows (below 1343) into the 1st week of December?
    Tks in advance.

    1. Testy - I expect one more near term pull back. Will we get lower lows? If I have the longer cycles positioned correctly they should provide enough downside amplitude to give us lower lows as they bottom in early December.

      Best advice here is don't fight the market. Just be ready to react (up or down) because turning points are always tricky.

  2. u finally got those cycles in the right place? keep up the good work.

  3. i think i might be a robot. hehehe

  4. Sue - doing the best I can. Not that I would ever admit to being wrong, but you know you appreciae/love my efforts even if I am wrong. Hehehe