Market Overview

Full Moon Rising Tomorrow

By Jeff Pierce

In my research last night I forgot about the full moon tomorrow night and the potential implication for next week and a possible correction. Given that the last new moon was a reversion incident and it continued to push higher into resistance and subsequently past resistance, the likelihood of a pullback next week is on the table. I'm seeing the most weakness in the TSX from my proprietary indicators that suggest that will be the first of the major indexes I follow to correct. I also feel confident it will be contained, shallow, and a great opportunity to add to existing long trades.

Blue circle – Full Moon

Empty circle – New Moon

djia

 

When you look at the vertical move we've had on the DJIA (above),  it's an easy call to say “we're due for a pullback” but that doesn't mean it's going to happen. A sideways correction is also a possibility.  That's why it's important not to unload all your longs here.

As I said in last nights video, it's a stock pickers market so follow your trading rules per individual names and if you are trading the indexes it probably wouldn't be a bad idea to trim some of those long trades and add on pullbacks.

The following article is from one of our external contributors. It does not represent the opinion of Benzinga and has not been edited.

Posted-In: Markets Trading Ideas

 

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