By Jeff Pierce
In my research last night I forgot about the full moon tomorrow night and the potential implication for next week and a possible correction. Given that the last new moon was a reversion incident and it continued to push higher into resistance and subsequently past resistance, the likelihood of a pullback next week is on the table. I’m seeing the most weakness in the TSX from my proprietary indicators that suggest that will be the first of the major indexes I follow to correct. I also feel confident it will be contained, shallow, and a great opportunity to add to existing long trades.
Blue circle – Full Moon
Empty circle – New Moon
When you look at the vertical move we’ve had on the DJIA (above), it’s an easy call to say “we’re due for a pullback” but that doesn’t mean it’s going to happen. A sideways correction is also a possibility. That’s why it’s important not to unload all your longs here.
As I said in last nights video, it’s a stock pickers market so follow your trading rules per individual names and if you are trading the indexes it probably wouldn’t be a bad idea to trim some of those long trades and add on pullbacks.