Every afterorning, I drink close to a gallon of coffee that I make myself since I almost never go to Starbucks or a similar venue and buy a frape-latte-blah-blah-blah-woof-woof-woof for $2.50. Today I decided to change things up and go for it:
Barista: “Hello Sir, can I take your order?”
Me: “Yes please. I’d like a Double-Top, Triple Bottom, wedgie pushed latte with a low volume 5th of a 5th wave sprinkle”
Barista: “Ok (looking confused). What size Sir?”
Me: “Whatever’s your all time high, make mine that. Oh, and I want it Inverted like the shampoo: Head & Shoulders”
The lower odds Elliot Wave path on an open that was as unrighteous as the Wednesday JUL 3 or the Wednesday JUL 10 non-indicative rallies, the algos have chosen “The path of the righteous man is beset on all sides by the inequities of the selfish and the tyranny of evil men”:
a path which best sets course of the 5th of the 5th wave where 1 completed or is near completion @ yesterday’s close; 2 for a dip NO LOWER than 2996 and likely to 3006 – 3002; 3 for the push to 3030 +/- 5p and the visit of the JAN – SEP 2018 Highs line; 4 for the dip back to the DOUBLE TOP Highs here @ 3018; 5 for the push to the top of the 2002 – 2007 channel and that BEAR extension @ 3047
“Blessed is he who, in the name of charity and good will, shepherds the weak through the valley of the darkness. For he is truly his brother’s keeper and the finder of lost children”
Draghi is due to be declaring QE19 (might be 18 or 20 – I lost count) before the open and expectations are for:
Change to dovish forward guidance
Potential QE restart in Sep
What is NOT expected are:
Stronger QE: increase in bond limit to 50% and/or QE maturity, new assets
Deviation from capital key
The risk of something big is underpriced so we could very easily have seen the topping of wave-1 of this 5th wave yesterday as it looks like a very clean 5 waves up from that 3rd tag of the TRIPLE BOTTOM (2973.09 – 2975.86 – 2976.65) which, ahead of AMZN & GOOGL reporting tonight, could easily call for the wave-2 of this 5th wave for a 38.2 – 50.0 retrace to 3006 – 3002 with no indication of any monkey business as long as 2996 is not broken/closed below.
Emotions are running very opinionated (which is why iHub and StockTwits exist) so to avoid another sjb88 scenario from a week back, keep it clean in Main (even though I can read all PMs everyone sends anyway) because “And I will strike down upon thee with great vengeance and furious anger those who attempt to poison and destroy my brothers. And you will know I am the Lord when I lay my vengeance upon you.”
How to React To the FB DOUBLE TOP
FB beat and had headline after headline and threat after threat throughout the day from FTC to SEC to DC to OIC and managed a DOUBLE TOP to its JUL 25 2018 ATH just as GOOGL did in APR to its JUL 2018 ATH and AMZN did 2 weeks back to its FAKE ONE TRILLION MARKET CAP prints.
Quite clear there is ZERO volume support above 210 with 309.4 a 10.0 retrace from the ATH – DEC LOW, but that 195.32 is a KEY PIVOT as its the FEB 2018 High and showed prior to the LIBRA announcement (and after) that its a key resistance point as well as during the JUN market rally.
195.32 has now become the #1 support with the earnings pop and thus should prove to be the #1 Warning level into AAPL reporting next week and the Powell FOMC decision. 188.75 is where the 50.0 retrace of just the rally since 161 stems from and deserves respect until we see reason to short term view otherwise.
202.25 should continue to be a LONG WARNING that above it is hopium
The SPX 3047 we started looking for in APR before the collapse of -225p in MAY for the JUN bottom is 1000000000000000000% in focus as we go into Jerome Powell’s chance to pull down his boxers and reveal his gender next week after more than 3/4 of the S&P WARNED of missing earnings and/or guidance and here we are with ATHs on the SPX. NDX, SOX, DOW near but out of gas, attempts on JPM & BAC while AMZN & GOOGL who control the U.S. if not ¼ of the planet as the British Empire did until the early 1900s
BREXIT MATTERS AGAIN as the move into Boris Johnson and appointments of all the BREXIT SUPPORTING cabinet members for the threat of a NO DEAL exit @ the end of October has currencies surging the USD which is in effect surging all of the above mentioned. Draghi might put a flesh wound into the low probability path for this 5th wave of the 5th wave (the most unreliable of elliot waves), but the guillotine rope is in the hands of Powell: 2PM EST