November 6th, 2012
Click on chart for larger image including Full STO.
Here is your big picture chart from a few days back and as you can see we tagged a MAJOR support level and after a few days of being in limbo the market reacted off of it by defending that trendline. This means the bull count could still be in play. NASDAQ looks similar big picture as well. If we are on our way over the coming days, we’ll be seeing a lot of names start to show up with positive chart patterns that we can work with on the long side. First let’s get to the short term trend channel resistance and see if we can ultimately break above it. It’s the next inflection point.
As far as we’re concerned today is day one, we’ll have to see what transpires over the next few days. If we are going to get an O’Neil, Investors Business Daily follow through day it’s going to come on the 4th through the 7th day which takes us right into elections which means it’s going to be a sink or swim event most likely.
Democrats say/think/feel that if Obama wins the market takes off, Republicans say/think/feel that if Romney wins the market takes off.
The flipside is that the Republicans say/think/feel that if Obama is re elected and the market tanks then it’s here comes crappy policies and the cliff, the Democrats say/think/feel that if Romney wins and the market tanks its here’s come the unraveling of all the last four years of policy changes and we’re headed backwards.
So which is it? Simple, the market makes the call. We also have to factor in one more piece of that equation and that is the unknown becomes known which means the uncertainty factor is no longer there. What is going to happen is going to happen so no sense in getting oneself all stressed out over it all. Place your vote and watch the show.
For us, right now it’s all about what happens once we get to trend channel resistance, some overhead supply and some Fibonacci levels as shown below.
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