Success so far, pullback probable New Poll ------------>
We have enjoyed a nice market pop the last two days, as I predicted over the weekend.. I'm just sayin'. However, the RumWave chart is meeting a specific resistance point. Looking back at short term market bottoms over the last 4 years, most of them have bounced off this RumWave resistance point to the downside. Sometimes the market makes a new low while other times it doesn't. What I'm getting at is that we should expect a little giveback tomorrow. For that reason I sent out an email to my friends recommending they adjust their stops to accommodate their individual risk tolerance. I personally set my stops to my entry points, meaning the worst I should do is break even if there is some kind of large collapse. If my stops don't get triggered I'll just ride the wave higher. Good times!
In the score chart above we can see that the 4 hr chart turned a burned orange (go Texas), indicating that we are overbought. The Daily chart is also turned orange. The RumWave is still green which supports the concept that a small pullback is probable while the longer term (talking 20 trading days) still looks to be intact... for now.
Today I noticed a bullish divergence on the 1 hr DJIA chart (yellow lines). This is a sign of strength in this particular wave, but do take notice that the slow stochastic is at high levels and is about to cross.. a sign of very short term change in direction.
TSP GAMEPLAN: If you are in the C or S fund, stay there. If you are not, stay in the G fund for a little bit.
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