Home > Stock Market Strategy, Stock Market Timing > WALL STREET CRAPS STOCK MARKET STRATEGY JANUARY 12, 2019


January 12th, 2019

craps front coverSTOCK MARKET STRATEGY FOR JANUARY 12, 2019: The stock market continued its strong bounce from the December 26th lows. All internal indicators show “overbought” readings which suggests both strength and possible exhaustion. There doesn’t appear to be any catalyst for a decline, but it’s probably too late to ride this current trend up without a small correction to neutralize these “overbought” conditions.

Key underlying short-term timing indicators show the following:


TIME SYMMETRY: The market declined from December 3rd to December 26 which was a period of 23 calendar days or 16 trading days. Projecting out from the December 26th low, the upcoming time symmetry top should occur either on Thursday January 17 or Friday January 18.

THE BOTTOM LINE: The time to buy was in late December and it was a very tricky bottom indeed. It was a reminder of how difficult it is to go long after a 1000 point up day, but that would have been the preferred tactic at the time.

If I had to guess, I would anticipate a decline starting late this coming week to a closing Dow low below the January 3rd (Apple) low of 22,686.22. Then a new rally could take the market back up to the 200-day moving average around Dow 24000 or S&P 500 2700. For now, keep your powder dry for a possible entry to the long side in another few weeks.

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