So as of the close Friday, 2/27/15, a confirmed pivot high was formed. This is a signal that for a short period of time that prices will normally fall 5 to 10 days before reversing. The reversing is the important part of the structure. In the case of the S&P 500, we need to see a reversal prior to the $1980 level. If that happens then structure will continue higher in almost every case. So we watch closely now and see what happens.
AS of Friday, 2/27/15, the Small Cap also formed a pivot high. Here the importance of $1064 cannot be stated enough. I fear that if fall below that level in the near future that a full fledge sell off will take place. So this one I will watch closer than I will the S&P. In case you forgot, that blue line, the $1064 level and the place of the last pivot low, goes back to July of 2014. It is a very important price level that I see that must hold.
Note: All of the above is based on daily information and not monthly charts. Come Monday, unless we are in a huge pull back, I will still be making my monthly move as noted on my previous post. My decision has been made to go 34% S, 33% C and 33% I.
Monthly and Weekly, OIL is still a long way off firing buy signals. On the daily chart oil fell back into the consolidation channel in what could be the bottom in oil. Before you assume, I’m not calling a bottom in prices. But since this is the 3rd time in the channel and it is relativity right in the middle of that channel, I did start and small starter position in Oil. You have to know that USA inventory levels are still rising which could make prices fall further. So be careful if you follow me here.
I purchased the UWTI which is a leveraged ETF. It traders like a stock but has 3 times the leverage.
The investment seeks to replicate, net of expenses, three times the daily performance of the S&P GSCI Crude Oil Index ER. The index comprises futures contracts on a single commodity and is calculated according to the methodology of the S&P GSCI Index.
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