{"id":129021,"date":"2018-06-24T15:37:57","date_gmt":"2018-06-24T19:37:57","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=129021"},"modified":"2018-06-24T10:42:27","modified_gmt":"2018-06-24T14:42:27","slug":"small-caps-technology-and-pharma-to-drive-a-renewed-market-rally","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2018\/06\/small-caps-technology-and-pharma-to-drive-a-renewed-market-rally\/","title":{"rendered":"Small Caps, Technology and Pharma to drive a renewed market rally"},"content":{"rendered":"
June 24, 2018<\/div>
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By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

We\u2019ve been warning our followers not to become frightened by price rotation in the US majors for months.\u00a0 Our predictive analysis has been showing us the upside in this market is far from over and our most recent analysis of the global markets is showing us that emerging markets and many global markets may be \u201cdisconnecting\u201d from the US majors in a dramatic price move.\u00a0 See our most recent research posts for more on this potential crisis in the making.<\/p>\n

Today, we want to alert you to the fact that the move in the US majors may not be over and we could be looking at many weeks or months of upside price bias with some 3~6% price rotations going forward.\u00a0 As we\u2019ve been trying to warn our followers, there are a bunch of \u201ctop sellers\u201d in this market because many believe this market is well overextended and has already reached an Elliot Wave 5 completion.\u00a0 Our analysis is saying this is simply incorrect and these professionals are failing to see the alternative perspective in the markets.\u00a0 What if their \u201ccompleted wave 5\u201d is really just a larger \u201cWave A\u201d formation or a completed Wave 3 or 5 \u2013 which would lead to much higher and longer upside price potential than anyone has imagined.<\/p>\n

Still, with a bit of a chuckle, we read the news that some of these professionals were taking larger positions as \u201cshort sellers\u201d and read their comments about \u201cthis is it \u2013 this is the top of the market\u201d.\u00a0 We posted our analysis and stood by our belief that this market continues to have upside potential and the reasoning behind our belief is relatively clear.\u00a0 The global markets have been primed by more than $16 trillion in quantitative measures and many foreign and emerging markets have squandered the opportunity to secure solid fundamental economic opportunities for their future.\u00a0 Very few global economies have the capacity for growth that the US and other mature\/major markets have.\u00a0 It is because of this current economic situation that the US and other mature\/major markets will be viewed as the \u201conly suitable economic investment on the planet\u201d for a while and capital will continue to run into these markets as a source of protection and returns.<\/p>\n

This ES (E-Mini S&P) chart (240 minute) shows the recent price decline over the past week that had many people very worried about a massive top formation.\u00a0 You can see this decline was relatively muted compared to the previous upside move.\u00a0 Over the past few days, the ES retested and broke above the downward resistance channel (in yellow) and is headed back towards the Price Resistance level just below 2800.\u00a0 This price level is likely to be reached within a few days and breached as the ES, YM, and Transportation related markets should push dramatically higher over the next few weeks.<\/p>\n

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This NQ 240 minute chart shows the same time-span, yet it shows the dramatic upside price breakout in the technology, pharma, and small-cap related indexes.\u00a0 Why are these markets a large driving force in this upside rally?\u00a0 Because capital is searching for suitable investments in US equities for protection and gains.\u00a0 Many of the FANGS and other major market symbols have already seen huge gains over the past 4+ year, yet there are hundreds of other suitable, less pricey symbols available in the realm of Small Caps, Technology and Biotech\/Pharma and others.\u00a0 Simply put, money is hunting for US based investment in suitable companies for simple reasons \u2013 protection from currency devaluations, protection from political turmoil and potential returns.\u00a0 There is only one place to go, the US stock market.<\/p>

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Lastly, we want to warn our followers that the NQ may stall a bit in an upside bias over the next few days or weeks while the ES, YM, and Transport related equities see bigger gains over the same time-span.\u00a0 It is our opinion that as this rally continues, the NQ will likely see a bit slower price acceleration as the DOW, S&P and Transport stocks pick up momentum.\u00a0 We are not saying the upside move in the NQ is over.\u00a0\u00a0 We are suggesting that it may be a bit more muted going forward while other symbols pick up the slack and rally higher.<\/p>\n

Our valued members get access to clear and direct predictive analysis using our proprietary Adaptive Learning price modeling systems.\u00a0 This helps them know what to expect Days, Weeks and even Months in advance.\u00a0 Our ADL price modeling system is telling us that our analysis future NQ price activity consists of 17 instances of correlative price data that average between 80% to 97% predictive probability of success going forward 20 price bars.\u00a0 To simplify this for our readers, we have a future price analysis with an 85% to 95% probability of success given 17 instances of similar price data.<\/p>\n

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Our members are uniquely positioned right now to take advantage of this without excessive risk.\u00a0 We will continue to evaluate new trades with regards to the potential for success while considering risk.\u00a0 Our objective is to not overweight our positions too heavily into one aspect of the market.<\/p>\n

Although, we will add that once confirmation of this move is evident, we may find multiple opportunities for quick profitable trades for our members.\u00a0 Get ready for some exciting price action and for this next move which most people are not expecting.<\/p>\n

Our articles,\u00a0Technical Trading Mastery book,\u00a03 Hour Trading Video Course, and our\u00a0Trade Alert Newsletter\u00a0are designed for both traders and investors to explore the tools and techniques that discretionary and algorithmic traders need to profit in today\u2019s competitive markets.\u00a0<\/span>Created with the serious trader and investor in mind \u2013 whether beginner or professional \u2013 our approach will put you on the path to win. Understanding market structure, trend identification, cycle analysis, volatility, volume, when and when to trade, position management, and how to put it all together so that you have a winning edge.<\/span><\/p>\n

JOIN US THIS WEEKEND AND TRADE YOUR WAY TO WEALTH THIS SUMMER!<\/h3>\n

By TheTechnicalTraders.com<\/u><\/a><\/strong><\/p>\n

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

By TheTechnicalTraders.com We\u2019ve been warning our followers not to become frightened by price rotation in the US majors for months.\u00a0 Our predictive analysis has been showing us the upside in this market is far from over and our most recent analysis of the global markets is showing us that emerging markets and many global markets […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-129021","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129021","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=129021"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129021\/revisions"}],"predecessor-version":[{"id":129022,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/129021\/revisions\/129022"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=129021"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=129021"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=129021"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}