Weekend Sunday March 6m 2016
MSB and CLF both turned down Friday afternoon on the hourly charts. AMLP and SLV did the same. XLE and XES did the same. So from iron ore to energy trust to the energy and service ETFs we saw some profit taking late Friday.
This action suggests we are coming into a pivotal week. Commodity plays have been on a tear as has the DJIA and Transports. I let energy get away from me but suspect there will be a better time now in April to buy at a low.
I own some short positions via DOG and DXD. I will be looking to add some DIA puts once there is a more clear sign of a top, if not we will exit DOG and DXD.
From the stand point of a seven week cycle here is where we are now.
I plotted the seven weeks down from the Early December top to January 20 and then seven weeks up to this next week.
Seven from this week would be a low scheduled for April 25-29. Notice DIA has re traced just over 61.8% of the down move.
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