C’mon Inner Peace; Traders Don’t Have All Day
Sculpture on Canyon Road, Santa Fe, NM.
Besides that she looks electrified and mystical in a sort of goddess, yogi, Frankenstein way, I imagine that she gazes up for a sign on the market’s next direction.
After all, the conflicting signals on the charts do not really add up. On the one hand, Nasdaq made a new all-time high.
Biotechnology cleared all of December’s price movement. Semiconductors retook a pivotal resistance point.
On the other hand, Retail was cast in a horror film where the skeleton-in-the-closet finally comes out to haunt everyone.
Transportation weakens and the Russell 2000 tests important near-term support for the 8th time since early December.
Yields and the U.S Dollar softened and metals rose.
Short of sitting in a lotus position with arms upstretched waiting for the universe to guide us, what other technical factors could help?
With just a bit more patience, position swing traders will soon have a reliable indicator.
The 6-month calendar range happens twice a year. We are only 5 trading days away from knowing the January 2017 calendar range.
As Geoff wrote a year ago, “January will often trend, and it can reveal new trends.” Therefore, the 6-month Calendar Range should clarify:
- Whether Retail, Transportation and Regional Banks are toast. At the very least, we will have a range to trade from.
- Whether the metals are due for a repeat of last January when they soared beyond the 6-month range. (Some of our best trades!)
- Whether Biotechnology hits a wall or continues to resurrect-so important to gauge speculative interest.
- Whether the long bonds hold in the monthly channel and continue to rise in price, hence yields continue to fall.
- Whether the list of 2017 long and short Picks will offer the best net gains in the next several months.
With an uncertain year ahead of us, the 6-month calendar range is not a guarantee, but a key time pivot and the potential end of one cycle and the start of the next.