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Stock Market Update – 01/01/19

Fellow traders — welcome to 2019! I hope you had a great New Years eve and that your hangover is manageable and goes away quickly.  Or if not that — then I hope you don’t DIE from your hangover.

What’s that — you’re still drinking? okay — have at it. When you are done — here’s a market update —

HOURLY

Seriously. What a few weeks in the market. If you can’t tell — the short term trend has been — say it with me — DOWN.

We had a bounce last week — and what a bounce it was! The markets were UP more in a single day than I’ve seen since 2009 lows.

Anyway — we bounced so hard it took us over the 50 hour hour moving average and now I’m looking for a continuation over the $251.40 — or more DOWNSIDE — which we all know is probably the case.

Although — now that I just said it — watch for more UPSIDE,

Ha!

DAILY

Ouch! Look at this chart! Is this 2008? God. Superman. Santa Clause. Someone save us! Please.

From a high of 293.94 to a low on 12/26 of 233.76 is a loss of over -20%. Typically, bear markets are defined as downside moves of greater than -20% from highs — so — OUCH.

Also — notice on the chart the BEAR DEATH CROSS — that’s marked by the 50 day moving average crossing UNDER the 200 day moving average.

Not Good.

WEEKLY

So where are we going?

Take a look at the weekly chart above. Isn’t it beautiful? Not if you are losing money I suppose — but from a technical standpoint it — is — freaking — perfect.

Also — notice the huge volume in January — I’d have to say that was the actual top — now we have huge short positions built up by smart money that are going to have to play out before the market turns.

Because of that i see a possible next leg down taking us to the 214 – 182 level.

Still — we have to wait and see. For now we have the following trends:

  • Short Term: Sideways
  • Mid-Term: Down
  • Long Term: Down

Until next time — good luck with that hangover!

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