Founder's Trading Journal by 0 Comment S&P 500 Index Daily Chart Cycle Analysis - Follow the Blue Line - Source @Fiorente2 Good Morning:The market surprised the crowd Friday, but not us. Our buy signal finally gripped, and our patience was rewarded.And we also have had some nice trading profits inside the consolidation over the past week in the trading room.Gap and Balance Rules are on the table this morning, as the market is slated to open with a gap higher.Resistance is at 3975, then 4100. A potential head and shoulders topping pattern becomes visible as the price approaches 3975.And the rally Truly begs the question, reflecting a mini version of my struggle in finalizing the forecast for the rest of the year.The 60 and 20-year cycles predict a very good year for 2023 – past the February/March dip.Yet how can that be? Have you ever seen such seemingly justified doom and gloom?And former Secretaries of State Condoleezza Rice and Robert Gates wrote an opinion piece on the front page of the Washington Post calling for all-out war with Russia!Are the charts leading Us to the contrary play of the century? A new bull run born in these perilous times?If so, and I am definitely not forecasting this, but here is a hint to the madness; the business of the United States of America is War, and the market often moves higher when interest rates begin to rise.Naturally, we need to be alive to collect our winnings, even if a rally ensues. The wisdom of starting a war with Russia or China escapes me.And Interest rates are merely normalizing from Artificially Low Levels – as long as they crest soon. Do the markets simply need to get past the initial speed and shock of the move?So There may not be a deep recession due to the war spending relative to Russia and China. That is why politicians love war. And bank profits should grow faster with the higher loan spreads.Most financial collapses happen in the peace that follows war – Not Wartime itself. I will explain this in the forecast, but Answering the potential rally question is lengthening the report, and leading to some Delays.On the swing trade, The Founders Group is watching the five-day line for stops, and we will consider taking profits at 3975 on all but a runner if the market moves rapidly there today.A.F. Thornton
Related Posts Founder's Trading Journal Accounts Founder's Trading Journal Pigs Get Fat – Hogs Get Slaughtered Founder's Trading Journal Reducing Positions Founder's Trading Journal Mixed Signals / Taking Profits Founder's Trading Journal Sell When You Can – Not When You Must! Founder's Trading Journal Onward. Upward, or Look out Below… Founder's Trading Journal New All Time Highs and Then? Founder's Trading Journal Sputtering Near the Channel Top… Founder's Trading Journal The CP Lie Inflation Report is Out – Sell the News? Founder's Trading Journal Raising Stops to Lock in Profits
Leave a ReplyYour email address will not be published. Required fields are marked *Comment Name* Email*