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The Implications of the Odd Stock Market Pattern 11/11/20

My longer term work has consistently led me to a bullish conclusion.

Stock Market Biden Time for the Bulls

My comments here pertain only to today, not to what I expect longer term.

The trading pattern in the ES fucutures since the close in NY yesterday is odd looking relative to recent weeks, and recent weeks have been odd looking. Make that recent months. The Fed has distorted the playing field.

The overnight gaps have been legendary. The legendary has become ordinary. If you’re not hedged by trading the fucutures 24 hours a day you are guaranteed an ugly surprise a couple of mornings every week when you get up and look at your screen for the first time at 6:30 AM.

What a goddamn mess.

But last night, they went sidewasyf ro a change, at least until 3 AM ET. Now, in the last hour, they’ve perked up and the oscillators are looking more and more bullish. If there’s no reversal in the next few hours, we’re going to be looking at another absurd gap when NY opens.

At the moment, I have no projections on the 5 day cycle. The 2-3 day cycle projects to 3590-3600. We also have a small reverse head and shoulders breakout patter here, that measures to 3610.  Resistance is projected 3586-3610.

So, unless this morning’s little breakout fails immediately by dropping well below 3560, I’m expecting to see that round number again, plus some extra.

Oscillators are bullish on both the 60 minute and 30 minute bars.

Click to enlarge.


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Lee Adler

I’ve been publishing The Wall Street Examiner and its predecessor since October 2000. I also publish, and was lead analyst for Sure Money Investor, of blessed memory. I developed David Stockman's Contra Corner for Mr. Stockman. I’ve had a wide variety of finance related jobs since 1972, including a stint on Wall Street in both sales, analytical, and trading capacities. Prior to starting the Wall Street Examiner I was a commercial real estate appraiser in Florida for 15 years. I was considered an expert in the analysis of failed properties that ended up in the hands of bank REO divisions, the FDIC, and the RTC. Remember those guys? I also worked in the residential mortgage and real estate businesses in parts of the 1970s and 80s. I have been charting stocks and markets and doing analytical work since I was a teenager. I'm not some Ivory Tower academic, Wall Street guy. My perspective comes from having my boots on the ground and in the trenches, as a real estate broker, mortgage broker, trader, account rep, and analyst. I've watched most of the games these Wall Street wiseguys play from right up close. I know the drill from my 55 years of paying attention. And I'm happy to share that experience with you, right here. 

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