FOR TUESDAY: (9/12) We continue to see lower gold and higher dollars into Wednesday and that should mean lower T-notes and higher stocks. Still, stocks look like they could run out of steam and retrace a bit into Wednesday. Our prayers continue to go out to the new flood victims in Jacksonville, FL and in South Carolina. Continue to dig deep into your pocketbook and support those in need.
DEC. E-MINI S & P 500
TRADING RECOMMENDATION: Wait for morning comments.
S & P ANALYSIS FOR TUESDAY: (9/12) The move above 2480 on the S & P reopens the door for 2494 this week. Pullbacks may hold 2479.50 or 2475 max. if 2494 comes in first. It’s another sucker punch and one has to think that the Plunge Protection team is making sure that everyone is happy with higher stocks even with parts of the US burning up and Florida and Houston underwater. The 29/30 day cycle is supportive the next few days so we’re not looking to sell. We’re not favoring the B-wave scenario to 2405 but if the S & P can’t accelerate and make new highs soon and we get another anxiety attack, it’s still possible. We continue to favor October as the month to be problematic this year.
FUNDAMENTALS: We’re not sure what to do with our Hurricane Andrew comparison as the damage is not as widespread this time but no one knows so far. In the end hurricanes are good for the economy but horrible short-term. The big thing is that the hurricane, N. Korea and the budget deficit are less of an immediate threat and Apple is getting ready to roll out a new I-Phone operating system, Apple X, and in the age of gadgets, what matters more?
WEEKLY CHART: Septembers are usually not too kind for the stock market but they got the budget crisis fixed early, it would seem that better prices are possible. There’s still a good possibility that based on patterns that a new high to 2500-2520 would be possible in September. In the end we still will have a minimum fall to 2360 or max. 2300-2320 as a fall correction target into early November with a multi-year high due into 2018.
CYCLES OVERVIEW: Topping toward 2494 and then generally lower into Wednesday.
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