Waiting for Long Pattern to Setup on SPY QQQ IWM and DIA
Today was a very quiet day. The market was only open three and a half hours, closing at 1:00. The NASDAQ was up 11 and the DOW was down 14.
I am hoping that by Thursday of next week I get a pullback on the daily charts to set up a pattern where I would look to get long the exchange traded funds SPY, QQQ, IWM, and DIA. Once we get this pullback I expect the market to push up and then continue to make a series of higher lows into the end of the year. A couple weeks ago I stated that the Russell 2000 has been lagging behind the market. Last week and this week the Russell 2000 has been outperforming the market and is starting to catch up. If I was a long term investor I would look to sell in the 17800-18400 range. I would look to be 100% in cash going into the New Year.
Today gold was down about $14, trading down to the 1053 level. I have stated that I am bearish gold. I was looking for a move up in gold to the 1090-1100 range. Gold got up to the 1075-1080 level. Gold is dead money here. The big number for gold is 1040. There are no clear patterns in gold and I am on the sidelines.
I stated I was bearish oil and that I have a sell signal on both the daily and weekly charts. I was looking for a pushup in oil into the 44.50-46.50 range. Oil got up to the mid 43 level a few days ago. Today oil was down over a dollar, trading around the 41.80 level. Oil is dead money here. The pattern I was looking for never completed. I am on the sidelines waiting for a pattern to setup in oil where I would look to go short.