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Trending Meltup 9/13/22

This is a syndicated repost published with the permission of Stool Pigeons Wire at Capitalstool.com. To view original, click here. Opinions herein are not those of the Wall Street Examiner or Lee Adler. Reposting does not imply endorsement. The information presented is for educational or entertainment purposes and is not individual investment advice.

I’m on my way from Rennes to Paris today. I’ll spend a few more days in Paris before returning home to Nice at the end of the week. In between travel days and walkabout days, I’ll be posting on Liquidity Trader and here from time to time.

Yesterday I visited St. Malo. I’d call this the French version of Dubrovnik. I mean, Wow! But what a tourist trap. But the baroque architecture against the backdrop of the city walls and the sea are a sight to behold.

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I’m several days behind in posting to my Instagram feed, but if you enjoy looking at other people’s boring travel photos, check it out. https://www.instagram.com/200daysineurope/

Meanwhile, back in the stock market, the ES 24 hour S&P fugutures are in a trending meltup that is running out of time for a 5 day cycle down phase. Here at 11 AM Central European Time, 5 AM ET, we are 4 1/2 days into a 5 day cycle with no sign of a down phase in sight. The ES would need to break 4116 and 4110 this morning to get anything going that bears would like. They ideally have a half day to break this.

If they don’t, the bulls would be in position continue the stampede for a few more days. Keep in mind that the conventional measured move target is 4250 based on the second level broken, but only 4135 based on the lower base breakout. It would be nice from the bearish perspective, if this held here, because if they get through this, then getting to 4220, which is the top of the bigger pattern, would seem to be a done deal. And if they get through that, the implications would be frightening.

They’ve already blown out the 2-3 day and 5 day cycle projections. I don’t go any longer term than that on projections here. For cycles of 4 weeks to 4 years, see the Technical Trader.

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And just for a little broader perspective, here’s the 2 hour bars. Getting to 4220 from here looks easypeasy.

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At least the trailing stops I had set on 11 of the 13 short side picks on Technical Trader took those out last week with a decent profit. The other two were closed out, indecently, as of yesterday’s open.  I didn’t like the setups on the buy side, so it’s thumb twiddling time. A decision that I may live to regret.

But then again, there’s always another streetcar, and I prefer to ride the ones heading south.

Meanwhile, the big picture:

If you’re serious about the underlying forces of supply and demand that drive the markets, join me!

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