Path Forward

Before off hours futures starts trading this evening, I thought it'd be good to get some thoughts and possibilites down on paper so to speak. Regardless of where I think the markets are eventually heading, I think we're at a critical juncture right here where a couple of different scenarios could play out.

First, given that the market is down right here, the possibility exists that short term they will continue on down into the tide turn date and possibly into the bradley date with some accelerated selling. Call it what you want, a strong correction or a mini-crash, it's a possibility that should not be ignored. It's been a great run and opens up the chance to rape the bulls relatively easily at this point. So, if we get this, that opens the opportunity for a good buying spot into the second or third week in November.

If, on the other hand, we get mild selling or even sideways action into the wednesday tide turn date or the bradley date, followed by a correct tide uptrend, then one might expect at the end of that trend, the following down trend could be one to be very wary of if you are a bull.

To summarize, I think caution is called for in this period to see how the markets want to handle a likely and needed correction.