Keep the Powder Dry Going into Year-End
This is historically a thin period of trading. Things can be a bit more volatile for a lot of the big money parks and parties at this time of the year. The Dow has not broken to the downside of the upside, as it is BASING within the trading channel. Wait for DEFINITIVE trades to emerge. This year-end is very important for it will help to determine if we are entering a blast off into 2017 or if we need to wait for the world to say “OH SHIT!” and it’s off to the funny farm into 2020.
We can see that the volatility models favor everything going nuts from 2017 onward. That will be the political year from hell as well. We also have the conclusion of this 2016 presidential race. If the Republican Party elites do not rig the primary or have Trump assassinated remotely using drones or hijack his car to run into a tree or off a cliff, then next year will be very interesting between Trump and Hillary — the Queen of banking Corruption. (see latest one on one attacks)
We can see from the daily array that the 16 was a turning point that produced the high close. We backed off but held the channel and bearish reversals, and now we have a choppy period with directional changes. So hold on. Keep the powder dry.