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PRE MARKET

We left out one other rule from last night’s report. We cannot believe we forgot this one:

In bearish markets, rallies are sharp, quick, noisy, make you feel good, suck you in and bury you soon after.

That said, a 1.5%-2% gap to the upside this morning off of the rumor/news that the U.S. and China were in negotiations to open up markets. Duh! There was never going to be a trade war…just a bunch of positioning back and forth. Those who listen to the radio show and watch us on tv know we have stated that in the end, all parties know nothing good would come from a trade war and something would get figured out. We were in hopes that cooler heads prevailed with trade reps going behind closed doors and getting the job done. But it is not over yet.

Just be careful of these big gaps to the upside off of massive oversold conditions in a holiday-shortened, end-of-quarter window dressing week. Just remember, the Dow dropped 1400 points last week. Just remember, the NASDAQ dropped between 6-7% last week. We are already hearing that the drop is over because of the negotiations. We are all for that. Just let the market prove itself first. We are not so sure!

3 Comments

  1. Would you please explain “after hours trading” ? If the market (Dow Jones) is closed, how can the price of a stock change?
    I’ve listened to your show for years and recently my wife has joined me every afternoon to listen to your radio show. Thank You

  2. The weenies are on the march..

    Re: This past Last weekend’s, …….global marches for gun control.

    Gun Control:
    Financed from the shadows; by Paul Allen, Bill gates, Michael Bloomberg, and Warren Buffet.
    Promoted, by TV NEWS, Hollywood, and……MTV.

    The actors,,,,,,high school kids.

    The children shall lead us….
    .
    We need gun laws to keep weapons out of the hands of the insane, but, not ” foisted,” and ” “financed,” by a propaganda machine…..
    .
    .
    The market:

    Yoda got a signal, last Friday that the move down was near over.

    Signal correct, the market appears to be basing…,
    butt, basing below the 50 day !

    Signal then, is a dcb ( dead cat bounce).
    .
    SMH leads ….
    .
    Q: Will SMH break above the 50 day, and provide a long buy signal, or… will it
    not… ?

    Q: Will the market stall at the 50 day- and turn back down , or… will it
    not..?

    Q: Will we break below the prior low, or… will we
    not..?

    Yoda, calmly watching signals,….. emanating from the force…..

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