This zone is nearly impossible to trade with leverage.I have an open long from $1063 with no leverage so I can't get stopped out from original retrace. $1078 to $1113 is whipsaw territory. I think if $1113 gets hit and supported next stop $1150. Yellen would have a difficult time raising rates in this climate.
I posted $1057- $1063 was my bottom a while back and not really what I thought it would stop at but a place to close a short on way down and open long on way back up.
Not using leverage means I won't get rich overnight but also have no need for stops.
$1150 was my target for Feb 15th so first 6 week interim level and reassess next contract period.
I think the Dow, S&P and Nasdaq could still drop 20% from here with ease if fear grips the market. Pushing short stops on oil and creating false indices rallies looks good but doesn't do much for the rampant overvaluation that exsists.
The problems in China cannot be fixed with stimulus... People need to realise this overcapacity is substantial.
Latent capacity will be available for any upturn in the next few years leading to no need for much new investment.
Power and water infrastructure yes many other things no.
On holidays anyway but thought I would say hello.
