By Jeff Pierce

It’s hard to really trust the market moves when the Nasdaq screams higher and the Dow closes essentially flat and I want to point something out that could be key as we go into next week.

djia

  • Oct 18th – full moon (top?)
  • Sept 19th – full moon (top in markets)
  • July 22nd – (a congestion zone that became a top)
  • June 23rd – bottom

My point here is that the full moon is often associated (at least in recent times) with an important reversal area for the Dow. Add in the fact the Nasdaq is really over-extended and enthusiasm for tech stocks after Google’s earnings should be at highs, and you have a recipe for a pullback. I’m not bearish as I am more indifferent to what is going on in the markets. I’m waiting for some sort of game-breaker move to the upside to get long (and we may have it after today, but it will be key to see how the Nasdaq performs in the coming days) or I was waiting for a decent pullback to get long.

I’ll have some work to do over the weekend to sift through for some long prospects and that could shift my bias a little to the long side but there are a lot of risks to buying at current levels (in my opinion).

I’ve recently added tradewithZEN to the list of Lead Traders at Ditto Trade and we’ll be having a webinar next week to explain how everything works. If you’d like to automate your trading with the goal of getting results like this, then you should attend this webinar next Tuesday, Oct 22nd.

 

tradewithZEN.and.DittoTrade

One Response to “Full Moon Drives Nasdaq To New 2013 Highs”

  1. Danny Says:

    Hello Jeff,

    I am skeptical regarding the effectiveness of using financial astrology to consistently make money in the stock market.

    Could you point me toward any other traders who use financial astrology that have built up a solid track record over time? Specifically, I am looking for month by month rates of return, going back at least 5 years.

    -Danny

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