October like most of the recent months has been significantly in favor of the bulls as the first 21 days have formed a bullish ascending wedge pattern on the intraday charts. As well he made this years history by breaking out above 10k for the first time in over a year so it was quite a significant moment that we traders shared this month and celebrated.
Although currently the DOW is riding the top resistance area of its 7 month long ascending wedge pattern and broke down and closed below 10k for the first time since we closed above it. This could very well be the top from a short term perspective before the markets make any real continuation above 10k which i think will happen. As i believe the DOW will be somewhere above 10k by 2010.
In the final hour of trading shit really hit the fan and the DOW tumbled over around 140 points which broke down an intraday double top formation and the neckline support was that oh so precious 10k mark! I liquidated most of my longs today that i was up huge on around an hour before the close but took a hit in the final hour. Still came out fairly large on the profit side but this market slide sure wiped out a big portion of open profits fairly quickly. So to market market i surely say EFF you for doing something like this to me.. Just plain mean. So my thoughts here is that this ever so pleasurable OctoberLUVfest may be coming to a close as the DOW really took a hard hit from the backdoor today. And this luvfest isn’t so enjoyable anymore if ya catch my drift. Shorting opportunities may be whats on the dinner menu this evening, and evenings ahead.