Below is a complimentary preview of my Weekend Update that goes out tomorrow to all Premium and PRO members of Blue Line Trading. For non-subscribers, especially anyone who is on the fence about giving Blue Line Trading a chance (or second chance in some cases) this weekend would be the time to sign-up for the trial discounted subscription. Why? Because of our success at trading major market turns, because of how we guided our members through the market debacle in the fourth quarter of last year, because of the charts below, the opportunity ahead, and all capped off by the fact that today Friday, Nov 15th the Dow, S&P and Nasdaq are making all time highs.
There is nothing new under the sun, nothing truly novel in existence. Every new idea has some sort of precedent or echo from the past.
Source: Ecclesiastes, and/or, The Elliott Wave Principle
Last October I was pounding the table to watch that upward channel for a break, then go all-in on the short side, i.e., Puts on stock indexes and select individual stocks.
Technicals (pattern recognition) and fundamentals (investor psychology) are lining up to wallop the market down. If the channels hold, no harm no foul, but if they break the best money of the year(s) - 2019 and/or 2020 - could be made by being well positioned for a swift and all-encompassing market event.
The upward sloping main trend channel has contained the S&P since June. The 3000 level is key round number support and its will meet the lower channel support line just as the new year begins. If the S&P is below 3000 at that time, the worst will likely still be ahead.
More tomorrow in our Weekend Update.