2 week Dow trend and market calendar

The market calendar says watch for heavy profit taking after Turkey Day till early December. When I look at rt.com 2 week trend for December it is very bullish (up ~70% of time). How am I to interpret this?

it appears that RTT does much of its research based upon percentage gains or losses. Therefore one or two large accumulation days. percentage wise, at the end of a trend time period could skew the profit taking that had been going on due to the holidays. Think about why people are taking profits at the moment and what would happen once they re enter the markets at the beginning of Dec, especially in a bull market.

I want to add a little bit more here because your thread sent me back. I listened to Gary's description of the Market Calendar again. This is the way you have to look at it. He says this:

Students often look at the market calendar and attribute heavy profit taking to a market wide sell off for multiple days. This is false. He says that generally the profit taking is intra day, rarely all day, and almost never multiple days. The notes state to watch for profit taking to continue until the 5th-8th. He said that this does not mean that the market will sell off for all of those days. He said that it could happen at any point during that time frame. That being said, this does not negate the RTT research that the market has a severe upside 2 week bias. In all likely hood that market will continue up but seeing that the market calendar is right on at the moment with Nov. being a great month (leave out the line that the market will sell of from turkey day through the end of the month bc Thanks. was at the end of the month this year) it will in all likelihood have some profit taking here soon. Use that profit taking to plan your next call buying opportunities "looking for them around the 5th-8th," realizing that they might occur earlier based upon what your charts indicate, trading only the evidence.

Profit taking does not mean sell off it means oppsite of what it has been doing and 2nd anything record 9yrs ago might be a little outdated in todays markets. IMO Reason that there is a new set of classes.

fear and greed, still the same

Anybody see anything to buy today?

Nope. I almost bought CALLS around lunch time when AMZN moved above the 50 MA on the 34 chart and above yesterday's high. But it just wasn't moving well enough, so I held off. Just as well as I'd have broken even at best.

Really starting to dislike the winter trading zone. It's so s l o w. The summer zone fits my personality much better.



Edited 2 time(s). Last edit at 12/06/2013 02:22PM by robert.

I watch EOG very closely and finally pulled the trigger yesterday before the close. BTO 2 Dec 165 Put using the 233 chart. Extremely bearish marabozu into the close with close near the lows and a finish below the 200 MA. MACD in bearish territory and histogram falling. Overall Weekly trend is extremely negative so this was an invasion force trade. I went small on the position though because of the uncertainty surrounding the unemployment rate. This morning EOG gapped up but if you watch the stock you know how erratic it is in the first 10-15 mins. It continued to fall and I added 2 more contracts to my position using the 55 min chart and 8 min action. Closed my position at the end of the day because honestly with WTI rallying like it is I'm not sure how long the domestics will continue to fall, even though it is walking the bands very nicely at the moment!

Bto EOG dec165 put....avg cost 3.90

Stc EOG dec 165 put..6.20

$920 profit on a $1650....55%

Nice trade!