Finally, another near term low? After a bunch of wicked, wild gaps and reversals…after hearing day in and day out supposed bad news on tariffs, Amazon, Facebook and whatever else, the best guess is that YESTERDAY’S REVERSAL did the trick as “bad news” was not only defended near the lows but was bought up nicely. We mentioned the possibility to you yesterday during the middle of the day but on days like that, you must wait for the close.
When the market has a “supposed” reason and a chance to break and not only doesn’t break and rallies strong, that is the definition of a near term low. Of course, in this news-driven environment, anything is possible but this time, it “feels” different. And now, until that level is breached….you fill in the blank. BUT DON’T BLINK!
As far as the upside, it is anyone’s guess as a lot of overhead resistance is in place. There is a distinct possibility we are back into what we have coined “ping pong”…just a bunch of back and forth in a 10-12% range.
Keep in mind, earnings come out in droves starting late next week with a few financials and then the week after, a slew of earnings comes out.
Of course, who knows what the next tweet is going to be.
Nice gap to the upside this morning. Already being asked if it will reverse down. Have no clue.
Lastly, another example of picking your poison…Longfin (LFIN)…another example of what we called “questionable” block chain, coin-based stuff just dropped from $74 to $11 in a few trading days with the December highs spiking to $142. Seems the SEC is now all over the company and doubt it is for a birthday party. Pay attention kids. There is a lot of money to lose in the market if you are not careful.