LunaticTrader

Investing with the Moon

Time for a rally

Posted by Danny on January 12, 2015

Stocks made some wild moves to start the year. The first lunar red period of the year has ended with a 37 point loss for the Nasdaq. If the cycles stay on track then we are now due for a rally.

Let’s have a look at the Nasdaq chart (click image to enlarge it):

Nasdaq

The Nasdaq has dipped below 4600 twice in the last 3 weeks. Each time buyers have come in quickly to push the index back up. Technically we now have the Earl indicator rising up from a bottom and Earl2 is also back below zero, but not turning up yet. The MoM indicator seems to be bottoming out as well. This is not a bad setup at the start of a lunar green period, and a rally towards 4900 is in the cards if all goes well.
A failure to get to new highs in the coming weeks would not bode well, and a drop below 4550 would look particularly ugly.

Good luck,
Danny

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: