In layman terms that means you can get a Cat 1 hurricane as opposed to a Cat 3. We can still get a selling event which already started on Sunday night but it doesn’t have to be the 4000 point disaster Granville is looking for. All due respect to Mr. Granville, he may turn out to be right but as traders news like that is a disservice to us because all we need to stay focused on is the current technical picture and that pattern as it develops. The problem most intermediate level bears have is they look for the Armageddon trade and stay too long. At the end of the day they end up with good profits but instead go for the grand slam and get squeezed which fuels the next bull run. That’s how we continuously end up at highs like we were last week.
Click chart to enlarge
Turning to this Chinese chart, the higher probability is we get another test of one of the breakouts to the upside. As they were gone a week, market conditions have changed and they likely want to test to see if their rally was built on a house of cards. Right now that big white candle is the latest breakout and it’s possible the entire candle can get tested. As much as this market has room to go higher the tide carries most boats and I doubt the SSE is going it alone.
We have lots of new material at Lucas Wave International in our newsletters and training programs. Every so often one gets a breakthrough. Those of you who have been following my work know it continues to change and evolve. Our clients will be treated to it as soon as this week. You can also follow us @jeffgreenblatt on Twitter as we had a very good first week.
Jeff Greenblatt is the author of Breakthrough Strategies For Predicting Any Market, editor of the Fibonacci Forecaster, director of Lucas Wave International, LLC. and a private trader for the past eight years.
Lucas Wave International (https://www.lucaswaveinternational.com) provides forecasts of financial markets via the Fibonacci Forecaster and other reports. The company provides coaching/seminars to teach traders around the world about this cutting edge methodology.