The Week Ahead

I've been looking at numerous assets like TLT, VIX, BABA, Transports, etc and while I don't find this to be as true in the major averages, I find myself saying, "Wait" before you enter a full position, it looks like a head fake move Monday, BABA is a perfect example or TLT from the last post.

Using Transports... First the larger picture, it's ugly...

A Broadening top that has already broke once with the lesson for the buy the dip crowd who weren't buying that dip, no matter how sharp of a "correction", but it, that has been the lesson of the October rally, like I said, a means to an end as the BTD crowd now knows a -10% loss is to be bought, not feared, that's the kind of psychology that locks them in for the long ride down. This also happens to be exactly what I suspected when we knew a rally was coming, but BEFORE the rally started.

5, 10 , 15 and 30 min charts have just fallen off the face of the chart this week, major damage as can be seen in breadth and the lack of any gains there.

 10, 15 and 30 min charts falling hard this week...

 a more detailed 3 min chart in transports shows the detail of that happening through almost the entire week with the exception of Monday.

However for the positions I'm interested in, I see a lot of rounding intraday bottoms with 1 and 2 min positive divegrences,  even if it's not a head fake move, I think I can get better positioning early in the week, if it is a head fake move, it's a great timing signal for stage 4 and a great entry. I don't see how another day's patience can hurt in this situation in any way.