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Go For It or Wait For It ?

PUBLISHED Oct 17, 2021, 2:53:10 PM        SHARE

img
imgTom Hamilton

Last week I talked about a "Change of Character" in this market, making the case that we've been overvalued and the 50 day moving average was NOT a support / buying the dips level. All well and good but the last 2 days have been a little impressive. How so? (reference the chart) First off, higher “highs” and higher “lows”, i.e. swing 3 is higher than swing 1 and swing 4 is higher than swing 2. Next, volume is beginning to return / increasing. I call out two possible scenarios going forward: in yellow, we stay in a trading range, in green, a breakout higher and a retest of the breakout before moving higher still. A “Change of Character” would support a trading range between 15085 and 14182, this could likely be a period of re-accumulation before an eventual breakout higher. In either case, this next week should give us a clue. A diverse group of companies report earnings: JNJ, NetFlix, airlines, Tesla, financials and P&G; the broad waterfront is covered. Good news drives us toward the green line, disappointing news drives us toward the yellow.

More discussion at: www.special-risk.net .

I/we have a position in an asset mentioned



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