{"id":102751,"date":"2017-03-01T06:45:56","date_gmt":"2017-03-01T11:45:56","guid":{"rendered":"http:\/\/countingpips.com\/?p=102751"},"modified":"2017-03-01T06:45:56","modified_gmt":"2017-03-01T11:45:56","slug":"correction-coming","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2017\/03\/correction-coming\/","title":{"rendered":"Correction Coming?"},"content":{"rendered":"
March 1, 2017<\/div>
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By<\/strong>\u00a0www.ActiveTradingPartners.com<\/a><\/u><\/strong><\/p>\n

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The correction in the markets is coming.\u00a0 The markets will correct in the short term,<\/em> which will allow them to move much higher in 2017. The short-term indicators of market momentum are overbought<\/em>. The trend indicators are clearly still BULLISH!<\/em><\/strong><\/p>\n

President Trump\u2019s cuts and his pro-business attitude have been sending U.S. stocks into new record high territory.\u00a0 This is a clear indication that investors are looking to the White House for inspiration. The SPX Index, Dow Jones Industrial Average and Nasdaq Composite Index are trading at all-time highs. They are extending the rally that began when President Trump was elected.<\/p>\n

\u00a0\u201cBuy The Dip\u201d?<\/em><\/strong><\/h2>\n

My version of Elliott Wave Analysis<\/em> points to a short-term market correction ensuing. The details have been posted to members of our TMTF service<\/strong>.<\/p>\n

After it has completed WAVE 5, the SPX will commence its\u2019 short-term correction. The correction comes in the form of a move in the opposite direction<\/em> of its\u2019 impulse primary move. It is a counter-trend that is made up of 3 corrective waves<\/em>\u201cA-B-C\u201d.<\/em><\/p>\n

Sentiment Indicators:<\/em><\/strong><\/h2>\n

Mr. Michael Hartnett, Bank of America Merrill Lynch\u2019s Chief Investment Strategies, is bullish on risk assets<\/a> based on the banks\u2019 forecasting model. As the stock market continues to climb, in the face of political uncertainty, it is \u201cnot dangerously euphoric<\/em> yet, this situation has not played itself out yet,\u201d he concludes in a February 7th<\/sup>, 2017 report titled \u201cAre we there yet? No.\u201d<\/p>\n

Mr. Hartnett and his team believe that current conditions are perfectly situated for a \u201c10% melt-up\u201d in stock prices. They see the \u201cstock market continuing to plow ahead, but by most of its\u2019 measures the runway is not unlimited in length\u201d.\u00a0\u00a0 The extremes observed in the market are not extreme enough. The Bull & Bear Indicator, (BAML), the broadest measure of investor sentiment,<\/em> is currently at a 6.1 reading on a scale of 10. This is significantly off the 2.0 reading during Brexit and the anomaly 0.0 reading during the February 2016 stock market lows. It still is not above the 8.0 reading which indicates investors are too emotional to the upside.<\/p>\n

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The SPX Marches To 2550!<\/em><\/strong><\/h2>\n

The SPX Technology Sector, XLK rose to a new record high last Friday, February 17th<\/sup>, 2017. This sector is on a winning streak. The last time that technology stocks enjoyed a massive winning streak, it led to much higher gain in the markets. This sector will make the NDX-100 the strongest index and the SPX the second strongest. \u00a0My next measured target for this move is at $60.00.<\/p>\n

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With the accommodating Federal Reserve saying: \u201cYellen To Congress: We\u2019ll do Something Someday\u201d. We should prepare for never before seen new highs in all U.S. markets, especially the technology heavy Nasdaq (https:\/\/www.wsj.com\/articles\/yellen-says-fed-will-consider-raising-rates-at-coming-meetings-1487084405<\/a>). Chairwoman Yellen\u2019s has this unique ability to say \u201cabsolutely nothing while pretending that she\u2019s got everything under control. There was no further information on the overrated Fed Funds\u00a0rate hike issue \u2014 overrated because it is both meaningless and a distraction to the real problems at hand\u201d. Her\u00a0testimony is best summed up as: \u201cI\u2019m not sure, we\u2019ll just have to see.\u201d The Federal Reserve has elected <\/em>to keep \u201ckicking the can down the road<\/em><\/strong>\u201d, even further!<\/p>\n

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President Trump said that he would add another $5 trillion to the $19.9 trillion public debt: (http:\/\/www.usdebtclock.org\/<\/a>). \u00a0In the meantime, he is devoted to balancing the budget within ten years, not cutting Social Security or Medicare, ramping up defense spending and passing a tax cut<\/a>.\u00a0 President Trump\u2019s New Economy Challenge is to create 25 million new jobs over the next decade. Additionally, President Trump\u2019s proposed tax and eliminating costly red tape will provide a welcome relief to small business owners who employ 78% of Americans and which will create 74% of all net new jobs within a decade.<\/p>\n

Quantitative Easing, (QE) has bought time, since \u201cThe Great Recession of 2008<\/a>\u201d for our financial\/monetary wizards to keep the can<\/em> on the road, thereby perpetually kicking it further into the abyss through QE. Solutions are being discussed amongst policy makers, behind closed doors (http:\/\/www.un.org\/press\/en\/2014\/gaef3417.doc.htm<\/a>).\u00a0 A part of the U.N. resolution states that, \u201cRecognizing the need to create a legal framework that facilitates the orderly restructuring of sovereign debts, allows the re-establishment of viability and growth without creating incentives that inadvertently increase the risk of non-compliance and acts as a deterrent to disruptive litigation that creditors could engage in during negotiations to restructure sovereign debts.\u201d<\/p>\n

Our current fragile financial global monetary system does not allow public debate regarding significant changes or it would risk implosion. Capitalism will survive<\/a>!<\/p>\n

The New Era of Trading:<\/em><\/strong><\/h2>\n

Trade for a living; win like the Professionals! This is a very exciting time to be a trader and follow my core strategy which allows me to perform in true form! The markets will extend its\u2019 rally into 2017.\u00a0 Every week, there are new actionable trade ideas. Avoid what I refer to as \u201cHerd Mentality<\/a>\u201d, which is always putting you on the losing side of the trades.<\/p>\n

The next\u00a0BIG TRADE<\/strong>\u00a0is setting up. You should take advantage of my hard work and expertise to make you short term profitable trades. Protect your financial future by getting my market and trade alert reports every week. Your portfolio should involve a\u00a0proven strategy which I provide.<\/strong><\/em><\/p>\n

We have just entered a new commodity trade (UGAZ) Feb 21 as its forming a bottoming pattern. We have locked in 10% in 36 hours and hold the remaining for much larger gains. Do you want to be in the next trade of the Next Hot Stock setup?\u00a0 My subscribers banked a\u00a0112%<\/strong>\u00a0in a swing trade with NUGT (Dec 16 \u2013 Feb 8th). All the trades are based on my Momentum Reversal Method (MRM<\/a><\/u><\/strong>) trading system.<\/p>\n

Another trade this month was ERX, in which we took a nice profit of 7.7% in less than 24 hours after entry. \u00a0All risks are well contained.<\/p>\n

Follow my lead and start making money every month with<\/strong>\u00a0<\/strong>www.ActiveTradingPartners.com<\/a><\/u><\/strong><\/p>\n

John Winston
\nCo-Author: Chris Vermeulen<\/p>\n<\/div>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By\u00a0www.ActiveTradingPartners.com The correction in the markets is coming.\u00a0 The markets will correct in the short term, which will allow them to move much higher in 2017. The short-term indicators of market momentum are overbought. The trend indicators are clearly still BULLISH! President Trump\u2019s cuts and his pro-business attitude have been sending U.S. stocks into new […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-102751","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102751","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=102751"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102751\/revisions"}],"predecessor-version":[{"id":102752,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/102751\/revisions\/102752"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=102751"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=102751"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=102751"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}