Stock Trading in 2020; What Does Early-Dec. Sell-off Portend?
12/07/19 Weekly Re-Lay: “Stock Indices remain in 2 – 3 month uptrends, with leading stocks and indexes setting a series of tops throughout the month of November…
The DJTA has led this topping process and generated two significant sell-offs over the past four weeks. All the indexes sold off sharply to begin December, perpetuating a ~60-degree cycle and repeating a pattern that has unfolded bi-monthly. In each case, equities suffered a sharp sell-off during the first 2 – 3 trading days of the new month but never turned their intra-month trends down.
In this case, most indexes twice neutralized their daily uptrends – while selling off into Dec. 3. And, their daily 21 MARCs rallied toward current price levels…
Stock indexes sold off sharply to begin December but were unable to turn their daily trends down. That projects a retest of the highs but they would not project any additional upside until daily closes above 28,109/DJIA, 3160/ESH & 8477/NQH.”
Stock indexes are repeating an intriguing ~2-month pattern that has timed sharp sell-offs (and multi-month lows) in the opening days of every other month. On a broader basis, they continue to closely adhere to the 40-Year Cycle – replicating the swings seen in 1978 – 1979 while providing important clues for 2020. They fulfilled near-term analysis for a quick, sharp sell-off in December even as focus is beginning to shift to late-Jan./early-Feb. ’20 – when the uncanny 2-Year Cycle will join the 40-Year Cycle (as well as the 8-Month & 16-Month Cycles).
What Does early-Dec. Sell-off & Low Signal?
Refer to latest Weekly Re-Lay & INSIIDE Track publications for additional details and/or related trading strategies.