Want to see something fantastic? If you got this one you had the key to Thursday. This square out symmetry hit very early Thursday morning on the crude oil chart. After all these years, I figured out exactly what this is. What I can tell you is financial markets have overcome a lot of intermediate level time windows to this point, the last of which is 721 weeks up from the 2002 bottom.
The jobs report came in with a good headline number at 255,000. Wall Street went ballistic and even noticed a twinge of euphoria Friday morning. Hold the phone, I’m concerned it isn’t what it seems. You’ve seen me flat out say from time to time I think some fundamental number is a complete fabrication. I think this number is on the level. But I also think they got there by the most creative levels of accounting gimmickry.
Another week, more mayhem in the world. What else is new? Last time I showed you the chart of the late 60s. The more I look at this situation, the more I think these times are more treacherous than 50 years ago.
Last week I showed you the incredible square out on the DAX for the Brexit high. Late Monday many charts formed a new square out low, which propelled markets back up. Probably the best example I have for you is the S&P 500, which turned back up at the 1991 handle in 91 hours for the move.
While the UK and the rest of the world was trying to figure out who really won the vote on Thursday night, I can tell you beyond a shadow of a doubt the real winner was WD Gann. Oh yeah, I wouldn’t kid you about something like this.
Wednesday became a day that sold on the announcement but settled in flat as I think traders weren’t so concerned as to what the Fed might do as much as they were looking for some bravado after the recent comments they’d raise rates soon.
I’m not concerned about a seasonal tendency like a Santa rally. I’m concerned for the aftermath. In normal years there is a holiday euphoria that went missing for the most part this year. While the week directly after Christmas is usually bullish it can be diminished as the euphoria has passed but as I said there wasn’t much euphoria to speak of this year.
It certainly isn’t easy coming here week after week warning people the market can hit a wall at any time while seeing it go up day after day. While I haven’t urged you to be short, I have basically told people to trade this market with one eye in the back of the head.