Markets have broken out to the upside, giving us a very strong lunar Green period.
We could see some more upside action early this week, but a lunar Red period is about to start, so it may not be a bad idea to take some profits.
Here is the chart for the Nasdaq (click for larger image):
The Nasdaq has reached our upside target of 3200, but I doubt we can go much higher.
My Earl momentum indicator is showing a bearish divergence with prices, so we are probably setting up for a pullback between now and the end of October.
A drop to 3000-3050 would then clear the ground for another rally into year-end.
A drop below 3000 would be a signal that it is time to exit this market, so I keep a stop-loss around that level.
Good luck, Danny
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This entry was posted on September 17, 2012 at 1:22 pm and is filed under Market Commentary.
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LunaticTrader
Is it for real?
Posted by Danny on September 17, 2012
Markets have broken out to the upside, giving us a very strong lunar Green period.
We could see some more upside action early this week, but a lunar Red period is about to start, so it may not be a bad idea to take some profits.
Here is the chart for the Nasdaq (click for larger image):
The Nasdaq has reached our upside target of 3200, but I doubt we can go much higher.
My Earl momentum indicator is showing a bearish divergence with prices, so we are probably setting up for a pullback between now and the end of October.
A drop to 3000-3050 would then clear the ground for another rally into year-end.
A drop below 3000 would be a signal that it is time to exit this market, so I keep a stop-loss around that level.
Good luck, Danny
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This entry was posted on September 17, 2012 at 1:22 pm and is filed under Market Commentary. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.