Saturday Review’s recording (for 5/6/17) …
This week’s Saturday Review had two main focuses: Friday’s new high close, and the weekend’s French election. The new high close on a Friday has implications, especially considering its proximity to the next higher objective(s) put into play at 2405 and 2411 by having closed recently above 2375. The election’s relevance is the part it played in Friday’s new high close, and that it won’t play any part after Monday’s open. There’s more…
The following stock requests were reviewed in this order:
DDD, BREW, WIX, SHOP, AAPL, NFLX, AMZN
good morning and welcome it’s Saturday time for the Saturday review first one of my very interesting very interesting way to get the month started I don’t know if you’re ending Spring or starting summer but the ongoing rally has resumed or the highest being retested to form a more durable top in any case several factors are playing out that we’ve been discussing and one that we also been discussing that seems to be left behind the factors playing out or that this last week or if not this week currently ending but the week prior started with huge reaction to favorable election results in France favorable to The Establishment favorable to the calm and steady market theory the whole requirement or likelihood of eventually retesting the the moment okay so the retest of Prior has three tests ever won would have been negative reaction to fomc minutes month ago now broken the next day confirming basically a break out it’s not really optimal Breakout war of downtrending resistance then of any multi-session range simply following through on the third day of Wednesday and since then really until yesterday Friday caught in a range arrange that ended the same way that prior pull back had ended stopping short of neutralizing Unfinished Business believing it outstanding as you can see it does not have any effect on the pattern itself doesn’t have any effect on the ability of the possibility potential and production you are very productive detour there was no requirement to retest anyways after Thursday morning so which came within three six of Wednesday’s low neutralizing it’s over so there such Wednesday’s low having satisfied some unfinished business below and stopping optimistically short of the 2375 level which hasn’t actually been touched intraday but we’re covering it for two consecutive sentences with told us to things number 1 will really one thing that an eventual higher close let’s go on to things really really that they would because that’s a break out not a break out of a pattern of a calculus also that the next higher calculable resistance or objective or traction would be in play and that is calculate 2405 + 2415 but also so those are basically corollaries also what it told us was that this downtrend from artists Pryor High haven’t confirmed the break out or the close above one calculable resistance would put into play by proxy then a complete retest of the entire Town Lake and that 2375 was also room for noise retracement Within basically that closely and closing that much into this double top the fomc house or their fancy minute I the by proxy so long as that was confirm the following session that again by proxy it would necessitate or obligate a complete replacement of the trim line on which that lay anyway where there that is been fulfilled and now we’re in the process of for the other for the initial objective putting to play 2375 a test of 2405 2415 that’s the next objective that looks like 2400 was the high 2400 area code 401 in fact at the time which was March did print that phases June the witch was not the front month but is now9725 9725 that’s the high print that I closed that day was 2391 it’s not been met or exceeded until yesterday and yesterday’s clothes and close equated to 96 9575 above 2391 this is a new high close on a Friday new trend High closes not necessarily new all-time highs as in this case just a new trend I close on a Friday doesn’t happen by accident it’s a reflection of where sentiments was looking forward as far as not the I expressed sentiment or verbally Express sentiment the monetarily expressed sentiment were people putting the money you can get excessive optimism and this certainly looks like it’s on its way there but when it’s so optimistic and so wide reaching that I can enforce a close above a previously relevant level previous relevant level then we may be very close to reversing down we may be very close to reversing down sharply Chalet in any case that much buying pressure doesn’t happen without there being at least one more hour plus maybe a hundred her clothes but if immediately price for Two Rivers down next week whatever happens in the morning extend higher and then reversed and GAP up and rivers down gap down extend higher to Fresh Hi and then reversed and whatever happens Monday however it might start if there is an immediate reversal down by the end of the day and a new High clothes doesn’t follow Fridays I close will know one thing will know that I knew how close is coming and knowing that a new high close is coming if immediately the mark over to reverse down and again regardless of what it doesn´t today it may prove higher internet talking about on a closing basis if we don’t get a higher close on Monday instead the market pulls back however long it might pull back for days weeks neither one would be an ordinary however long it might pull back for if we do get an immediate pull back we’ll know the context is new High clothes coming what a pulled back stop at 94 would it stop at 91 a pullback could extend down to 2388 just normally that’s just 10 points 11 points off of yesterday’s post close close heaters close you got up to 2399 we could dip – 2388 usually is testing lower price we couldn’t prove it he’s already been used as we discussed yesterday afternoon there’s no returning to 86th and Market 8886 and recovers before thewithout extending hired to get that fresh High clothes required fresh my clothes out of the way any immediate any Interruption to that it’s going to be all about backing and filling trapping shorts refueling logs to make 2415 melt away if it’s me instead extending hire list rent throwing in some Court events like Sunday there’s another election Poetic Justice was the same the same impetus or catalyst the same Catalyst that started this ball rolling that is French election results that narrowed it down to two candidates and anticipation being as we got into The Weeknd hour to Patient being that Friday would reflect the into the holes that’s that say or not to suggest that right say that the establishment candidate will win and that’s what the market want so that’s what Market participants want I should say the market establishment the populist like Trump and not a populist moves like speaking of which this looks like there was also similar price higher Joe price higher into the vote literally to the last minute little bit of correction before that get those players off the stage breakouts along the way and not to new Highs but that’s not really literally post close has wasn’t because of that snowball as it’s quite likely that price of 2016 it’s quite likely that was possible andthere’s that there’s not going to be a surprise in the results it’s still entirely possible and I think likely that a lot of that sentiment is already gotten to price a little bit of a relief rally would be likely very easily get from 2399 Riva 96 Friday’s cashing closing equivalent very easily get from there to 2405 or even 2415 then the question will be the timing weather that’s maintained through the close to satisfy the upside at which point we can start looking for price to correct remember this started prematurely or whether we get out about 2415 to put into play higher objectives what other scenario to to consider is that everything that I just described as far as an initially favorable reaction to the news does come out or does develop Sunday night Monday morning and you’re up the results will be known if the poles or anywhere near accurate there won’t be any question Orkin testing and your UPS markets will rally and yes which opens on Globex will rally to assuming all else being equal yes can get to 2405 it can get to 2415 it can do that overnight and meanwhile Europe which is initially developing its relief rally suddenly stops extending higher maybe doesn’t have as much of a relief Rally or a rally on the results as the market would like to see because it’s overly invested as it is people struck throwing in the towel this is all before we open over here in the US and by the time us markets open it’s possible yes having been to 2405 or higher has already reverse down a two things can happen in that instance again this is in the event of global markets rally and European markets rallying Monday morning European time Sunday night u.s. time taking is higher Sunday night however much higher and your UPS markets reversing down in tver afternoon the head of their afternoon actually before I open greeting hour open by the back under 2405 + 14 + 15 + or if somewhere along this area had only been that lower rather than hire that we actually open negative negative vs. Fridays cash North there’s a little bit and here this is intentionally angled little bit of a surprise who’s test at the open could still produce a bounce if we’re not actually phone through if you’re already reacting wheat racing on the news or after already having expressed satisfaction with the news and then discovering that they’ve been expressing their satisfaction with the news all along and there’s no more satisfaction to express if sewing pressure has in fact greeted are open Monday back under fries or if the open can’t get back out dips back down and kick it back out about prayer has tuliskan take a lot of room there’s a lot of room to the downside member once we get through if we get through 23 88-86we’re heading back to this unfinished business below unfinished business below defined by gaps gaps propane fryer Lowe’s 2311 would not be out of the realm of possibility and not just really by Monday afternoon maybe not even by Tuesday morning maybe somewhere along the week we are entering that kind of a market we have I believe entered that kind of the market already will we start to see as we did I mean similar environment that we saw in June of 2016 as we see about once every 3 months 3 to 4 months for more than a week pockets of it ahead of that more than a week. Pockets of it following that consisted more than a week. As we come into it as we leave it behind where it entered a there are huge swings not little loose and not isolated to gapping and even in the event of gapping still trending Post open think we’re entering that if not have entered that face and it doesn’t require let alone and Shore trending in a singular direction throughout but often reversing and reversing substantially in both directions internet so if in fact the markets pliability has expanded or increased as I suspected has it doesn’t matter that it is trending in a certain direction what that means is it has a wider range in the more that rubber band is stretched and comes into contact with a brick wall the more substantial the retirement and possibly the more I’m going why does it take a quick look at the other changes so here’s the and we’ve been monitoring these throughout and I have yet to indicate that that big money is getting very defensive or that speculative forever is necessarily slowing down in fact where is S&P 500 actually didn’t probe the prior home till very late and only by very little that’s not the case with and q’s now they’re not so substantially up performing as they had been there’s also a interim correction pattern was just pattern structure there’s an intern correction that is biased upward can meet Lee finishing the ceiling face and then being biased upward that’s not really a correction this is the correction this is accumulation pretty impatient buyers the time that accumulations so it’s accumulation by weekends here’s their reward which is often breed that buying pressure rather than making multiple stages making a correction out of multiple stages there’s a multiple States correction rather than trapping shorts already this pattern is on its way to the Malaysian looking for that inevitable hire her that everything relies on and that buying fresh truly missed just when it’s needed to maintain the breakercenters and they’re not after forming yes to the degree that they were only a slightly higher high that relative to ES at that time and even then not is descript correction the Dell starting to outperform or try to get in gear and Performing remember this low that we talked about on Thursday stopping short bases the es having stop short having some sort of Wednesday’s low in the ES there’s the Dell underperforming still not seeing big money yet more focused on big are blue chip stocks but it hasn’t even answered an accumulative face is still correcting lower lows and highs if it already extends to a friend that’s going to leave it so prepared to maintain it will also make that hire I arrive more aggressively because virus won’t be expended buying pressure will not have been expended not an easy to maintain but for now not seeing the cracks maybe seeing cracks but not seeing them fissure and lose their bouyancy