Saturday, December 20, 2014

Weekly outlook for dec 22, 2014

The bounce definitely had more vigor than I expected, but I would guess I was not alone.  This short cycle is topping (may have topped) in  the very near future.  SPX could set an intra-day high early in the week.  Given it is a 4 day week the week could close up for the week, but I expect it to show downside tendencies by the end of the week.  Given recent volatility any move could be significant.

Here is a visual:

For swing trading we generally look at shorter cycles like the 13-17  TD cycle and get too fancy with our charts and analysis.  Maybe we should KISS (Keep It Simple Stupid) like this:

GL traders

update 12/23 - As suggested the averages set new highs here in the first part of the week.  May have some upside left before Christmas??

update 12/24 - today the DJIA was up most of the session, but closed only slightly higher and SPX was slightly negative.  What one would expect if a short term top was being made....


  1. Hi ,

    I discovered your works a few months ago and I find it very interesting . This concept of cycles is great and I'm sure it's the best way to be in the right direction whatever happens to the market .
    I'm just wondering one thing . How do you create your differents cycles into your charts ? I use Stockcharts , but I can't find this particular tools......?
    Thanks for everything ...


  2. Under "annotate(flash") use the line cycle tool about halfway across tools at top of chart. If you place arrow over that the "drop down" shows a "sine" and "circle" instead of "lines". Select one of these two options.....

  3. Thanks a lot ! Don't know why I haven't seen this before .....

    Merry Christmas to you and all your Beloved Ones !!!!