Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Seven weeks ago, was this post, giving a ‘heads up’, gold (GLD), had just printed massive upward thrust energy.
A print like that, happened only once before, near the 2011, top.
From that top, GLD, traded in a range for over a year before heading into a sustained decline.
That decline lasted three years, GLD down -46%.
So, here we are. 🙂
We’ve posted massive upward thrust energy seen only once before, a potential top, sideways action for just over two-months; then, trend breaks down.
Sounds about right.
Now, all-of-a sudden, professionals may be selling (or set, to sell), link here (not advice, not a recommendation).
Gold GLD, Daily Close
We’re going to look at GLD, a bit differently. That is, the repeating pattern of Spring-to-Up-Thrust, link here.
Human psychology does not change.
Buying on the way down.
From ‘One Way Pockets’, first published in 1917, the author had access to client accounts, analyzing their behavior over bull and bear cycles.
From his findings:
Once a stock had reached its peak and started a long decline, that’s where most of it was ‘handed out’. Sold to the public as it was moving lower … then, lower, still.
Wyckoff seconds this truth; ‘those on the wrong side of the trade, provide (most of) the fuel, for the way lower’.
Short Term, Long Term, or Not at All
As this update presented, we’ve had a potential top indication for GLD that’s only happened once before.
The last time, it was over four years before GLD, bottomed and started the next bull run.
It’s impossible to know if this time is different.
However, price action itself, will tell us the next probable direction.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
No matter what happens from here, Boeing has met conditions of a repeating set-up: Spring-to-Up-Thrust (not advice, not a recommendation).
A ‘set-up’, does not guarantee anything.
It just means, market behavior is such, there’s a potential for correlated (i.e., directional) movement.
The last update said there was a possibly of ‘spring failure’.
It gave specific conditions for potential failure … neither of which, happened: BA, did not open lower that day and the weekly low, was not penetrated.
All of which, brings us to now.
Early this session, BA, launched into up-thrust condition as the ‘result’ of news, link here.
Forecast In Advance
It’s important to note, potential for today’s move was forecast with this update, including upside target.
That forecast had nothing to do with ‘news’, but everything to do with how markets (tend to) behave.
So, here we are. 🙂
Boeing, BA, Daily
Penetration of the target area creates an up-thrust. On the daily we have ‘spring-to-up-thrust’.
Not only is the daily a repeating set-up, but the weekly is as well, shown here.
Problems, A-Plenty
The problems for Boeing have not disappeared.
The CEO hinted at this, when he clarified his comments at the conference (paraphrasing):
‘Moments later, he corrected himself and said he wants to ‘get ready’ for production ramp-up, in hopes to meet (target) production levels’
One doesn’t decide to instantly ramp up production and then ‘poof’, it happens.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Price action ‘failures’ provide and edge in market positioning.
In the case of Boeing (BA), from yesterday’s post, we’re expecting continued move higher off the ‘spring’ set-up.
So far, it hasn’t happened.
Instead, BA closed lower for the day; in the pre-market today (7:28 a.m., EST), it’s trading within ticks of that close.
So, what does it mean?
If, BA opens below yesterday’s low (200.88), we have a possible spring failure in the making; especially so, if price action prints a new weekly low, below 198.75 (not advice, not a recommendation).
Boeing BA, Daily
As this post is completed, BA is trading at 201.15, just slightly above the close of yesterday.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
It’s never fun to wake up ‘in-the-red’ but that’s where Boeing BA-25-02 (short) was in the pre-market.
Based on the chart, with Friday’s lower close, price action had one of two choices; post lower and continue the decline or push higher from the spring set-up as shown.
Looks like we’re set-up to see if the (up-thrust) target area is met (not advice, not a recommendation).
With that said, the short was exited pre-market with an overall loss of 0.99%.
Boeing BA, Daily (pre-market)
Note, from the high on 5/14, to the low, last Friday, is Fibonacci 8 Days.
If the correlation remains intact, we’ll be looking for a potential target set-up, on Fibonacci Day 13.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
