Weekend Newsletter

Reminder: David is available to chat with Members, comments are found below each post.   HOUSEKEEPING:   There will be no weekend newsletter this weekend in observance of Christmas on Sunday. If we have anything to say we’ve got Monday to say it. Speaking of Monday, there will also be no mid day update on Monday as markets in the U.S. are closed.     On behalf of All About Trends we’d like to wish all of you from around the world a big seasons greetings!     .        =============================================================================   Yesterday We Said;   12-22 Expect the 50 day and blue top of the triangle to act as a resistance level at least initially. Same goes for the SPX below. That is unless a "Paint The Tape"  frenzy takes over.                     Here is today’s micro charts                      12-23 Check out the last four days. Look a little stretched to you? It does me.           Even the 60 minute chart of the S&P 500 says so too. This doesn’t mean it can’t go higher as overbought can stay overbought. What it means though is that any low risk entry on the longside is long gone and that we are in the zone for a turn here.   Per the micro charts (SPX notes) the big question about the turn, pullback, consolidation, digestion of gains is whether or not that was it (today’s highs which is C) OR we have waves D and E for the final high yet to go. If that’s the case overbought is going to get really overbought. Of course for  those looking to reduce long exposure its  a good thing and those looking to short on strength its a good thing as well because we sure don’t want to short after the fact  just like buying is here is after the fact.        So what do we do about it? Same thing we have been doing and that is to get prepared for the near future …