A day of consolidation

The VIX chart keeps me on my toes and this is one of the reason I am wary of this rally. Look at VIX. It is forming a descending wedge with positive divergence on the dailies. Once it bottoms, the initial run-up will be very fast & furious. So I am a expecting a mini-crash in the main markets after 23rd.

To form a positive divergence, the VIX has to turn up today, meaning the general markets will be weak. This has to occur if the thesis is working.




USD has turned down slightly, coinciding with the market rise yesterday, however, it is still well within the rising channel and should again, turn up on 23rd, targeting 79.50 area as the bottom. Overall, USD is moving up and points to higher highs in the next few weeks. Another reason to believe we are going to see a weak Jan.




What a great day for bulls !

Major indexes were up nearly 3%, though most of the action took place pre-markets. This had been the trend recently...markets gapping up or down huge, and consolidating during main hours.

We should see a consolidation today, or general weakness in the markets, perhaps closing negative. This is required if we are going to top on 23rd Dec. Tomorrow would be another gap up day if history repeats.

All charts are pointing to 23rd Dec for a turn. We should see weakness in the markets in January, and in my opinion, that is a major buy period. News will start surfacing regarding eurozone problems again etc... that should not deter us from buying.

I will be sharing January's road map, the turns and perhaps touching a bit on price targets after December.

I am getting busier these days as the quarter is closing, hence my apologies if I do reply late to your messages. I will try to provide daily market updates if possible, but might get delayed a day or two. I brought my laptop back home and promised to WORK, and again, I find myself shored to the computer trading screens haha. Ok, I got to go work. Please check back again tomorrow for market updates.

Have a good day ahead !