LunaticTrader

Investing with the Moon

To the summit

Posted by Danny on August 5, 2013

US markets have pushed into new high territory once again. Many other indices are close to doing so.
With another week of lunar green period to go, we are in the position where we could get to an important peak.

Here is the Nasdaq chart (click for larger image):

Nasdaq

Major overhead resistance is around 3770, about 2% above current levels. A 2% advance would also put the S&P 500 near 1750, and the Dow Jones above 16000, major targets we discussed recently.

From the perspective of my Earl indicators, we see that the shorter term Earl has bottomed out, while the slower Earl2 appears to be close to a top. If the market rises 2% and then turns down, it will probably paint bearish divergences in both Earl indicators, which typically indicates the start of a correction or bear market.
So, we keep an eye on that.

If we reach these upside targets next week, then I will be cleaning out my portfolio and turn on the second stage of the options strategy I lined out in Why Dow 16000 will be sold

Good luck,
Danny

 

Enhanced by Zemanta

Post a comment (disagreement also welcome):

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

 
%d bloggers like this: