intelligent investing, weekly digest · pdf filewe have 3 timing/cycles ... our short term...

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1 | Page Executive Summary The market reached the lower end of our preferred SPX2350-2370 target zone, without breaking below SPX2352, the past week, and then reversed with a 22p rally off the SPX2354.54 low made on Thursday. We expect this low to be minute-iv of minor-5 of intermediate-iii. Minute-v should now be underway, and with the current >10p waves in place micro-5 of minute-v should ideally target SPX2402-2407; which fits perfectly with the 1.382x extension of Major-1 and 1.618x extension of intermediate-i (see tables below). The daily TI chart, as well as market breadth setups are resembling the charts/setup from summer and spring 2016 the most when either final 5 th waves were also in the making. We have 3 timing/cycles (our Fib-timed trading intervals, Bradley Turn dates, and Gann dates) pointing to a turn around mid-March. If our preferred count is correct than we expect the market to peak within the next 10 days between SPX2405-2420 for intermediate-iii of major 3. Intermediate-iv should then drop to SPX2330-2285 before intermediate-v sets its eyes on SPX2480-2490 (blue boxes in tables below).

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Page 1: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

1 | P a g e

Executive Summary

The market reached the lower end of our preferred SPX2350-2370 target zone, without breaking below SPX2352,

the past week, and then reversed with a 22p rally off the SPX2354.54 low made on Thursday. We expect this low to

be minute-iv of minor-5 of intermediate-iii. Minute-v should now be underway, and with the current >10p waves in

place micro-5 of minute-v should ideally target SPX2402-2407; which fits perfectly with the 1.382x extension of

Major-1 and 1.618x extension of intermediate-i (see tables below).

The daily TI chart, as well as market breadth setups are resembling the charts/setup from summer and spring 2016

the most when either final 5th waves were also in the making.

We have 3 timing/cycles (our Fib-timed trading intervals, Bradley Turn dates, and Gann dates) pointing to a turn

around mid-March.

If our preferred count is correct than we expect the market to peak within the next 10 days between SPX2405-2420

for intermediate-iii of major 3. Intermediate-iv should then drop to SPX2330-2285 before intermediate-v sets its

eyes on SPX2480-2490 (blue boxes in tables below).

Page 2: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

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Trading Performance Update with North Post Partners, LLC

NPP provides neither a boom, nor a bust. Just consistency. That’s how the real money is made. This week we

increased our entire portfolio-size by 0.4%, whereas the S&P500 lost 0.4%. Current positions are red due to Friday’s

up/down/up day; when we bought at the high, but we fully expect our YTD gains to reach >11% next week. And

trading is all about cashing in profits and minimizing losses and as long as one does that one can only get richer

Please contact me or Rus Chao directly ([email protected]) for more information. Joining NPP is absolutely free!

Please follow NPP on TWTR: @NPPtrades (all intra-day trades are provided there in real time)

Please bookmark NPP’s website: http://northpostpartners.com/ (weekly digest/trading plans are posted there)

*It should not be assumed that future performance will always be guaranteed and/or profitable. Nor will future performance necessarily equal

past performance or past performance trends. All trading and investment decisions are the sole responsibility of NPP. Joining NPP is free, but

does not exclude commission costs, and other possible charges.

S&P500

NPP

Per

form

ance

(%

gai

n)

YTD

Trading week ending

Page 3: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

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Elliot wave updates

Last week we updated our bigger picture count in that the market is carving out a larger top (intermediate iii on SPX,

major 3 on DOW). This week the S&P500 bottomed on Thursday right in our ideal minute-iv target zone (see Figure

1) and then put in the best rally (22p) since the SPX2401 high; suggesting minute-iv is in. In addition, we have now

two >10p waves from the SPX2354.54 low: SPX2377.86 (Friday’s high) and SPX2363.06 (Friday’s low). See table 1

below. These can preferably be counted as micro-1, 2 of minute-v. Using standard Fib-extensions, all of minute-v

should then ideally target SPX2402-2408; which fits perfectly with the 1.382x extension of Major-1 at SPX2408 and

the 1.618x extension of intermediate-i at SPX2411.

In the event that all of intermediate-iii already topped at SPX2401 (alternate count; see Figure 3 page 5) then the

SPX2354.54 low can be counted as minor-a, with minor-b now underway targeting ideally SPX2399 (1.618x

extension); which of course also is the ideal micro-3 target (see Table 1).

Figure 1. Preferred count: Minute v of minor 5 of intermediate iii underway.

Table 1. Possible micro waves of minute-v to SPX2402-2408.

4?

Page 4: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

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Technical Market update

The negative divergences we pointed out a week prior, should have not been ignored, as it caused an almost 50p

drop in the S&P500; but price found support at the rising 20d SMA, and the charts’ TIs are ready to turn back up.

Because the S&500 didn’t close at the highs of the day, the non-ideal A.I. buy-signal alert we sent on Friday morning

didn’t trigger at the end of the day; but will on a green close on Monday. We apologize for that, as the A.I. is meant

for daily closes, but sometimes we want to keep you a breast of possible important developments in real-time. The

current chart set up resembles that of early-August 2016: minor-5 of intermediate-i. This would also mean our

current minute-v should be done within a week. This in turn fits with several smaller and larger timing/cycle patterns

as well (see page 8). The MACD and MFI14 will then also set up similarly as in 2016 (red lines on both TIs) telling us

to expect a larger pullback, intermediate-iv, to ideally SPX2330-2285: 23.6-38.2% retrace of all of iii.

Figure 2. SPX daily chart. Tis starting to turn back up from –in some cases- oversold. 20d SMA held as support.

Page 5: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

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Our alternate count.

Figure 3. SPX daily TI chart. Alternate count; minor b of intermediate iv now underway. Less likely

Alt: 1

Alt: IV

Alt: a

Alt: b

Page 6: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

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Market breadth

We’ve talked a lot about market breadth’s extreme readings the past week, so in this update we’ll simple go over its

current status. The McClellan Oscillator for S&P500 (SPX-MO) recovered sharply on Friday, as expected, but remains

low. The current setup is similar as in August and May 2016 (red boxes), and January 2017 and April 2016 (blue

boxes). In all 4 cases the market rallied for a few days before topping out. The SPXSI (summation index of the SPX-

MO) remains on a sell after Monday’s sell signal, and will likely remain that way throughout all of minute-v.

Figure 4. SPX-MO turned up from extremely negative readings. Current setup similar to prior 4 “last rallies”.

Page 7: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

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Miscellaneous

Our long-term Simple Moving Averages only chart (LT-SMA, for trend followers and long term investing) continues

to be 100% bullish: the long term trend remains up; even with a looming intermediate-iv, which should not change

this chart at all (see 2014 example). As such this chart continues to support our overall view of the market and where

it will head over the next several months. Our short term chart (ST-SMA, for traders to swing traders) changed 10%

to 90% bullish; in line with the preferred minute-iv.

Figure 5. LT-SMA chart 100% bullish ST-SMA chart 90% Bullish.

Below is how a 100% bullish chart look likes, everything points up. Price > fastest SMAs > slowest SMAs.

The “Ebola scare” correction

in 2014 didn’t even register

on the LT chart!

Page 8: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

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Our next Fib-based trading interval is set for March 14 for the SPX; which is in line with the next very strong Bradley

turn date on March 20 (see page 9; 100/100 long terms); as turn dates are +/- 3 trading days. From one of our

followers on TWITTER (this is one of the reasons why we are on social media: expand our outreach to not only increase

our member-base, but to also increase feedback opportunities; so please follow us and NPP on TWTR and FB too!),

we received a Gann-based turn chart, which also has a turn date on March 14 (red arrow) as well as on May 1 (orange

arrow). This adds weight to the evidence that we should expect a top around mid-next week. In addition, the May 1

Gann-turn date also fits with our May 2 Fib-based trading interval; support the validity of our interval (as if 2+ years

of nailing most highs and lows wasn’t enough proof already ). Given the strength of the Bradley turn date, the

overlap of all these dates through independent methods the anticipated Major-3/Intermediate-iii top appears more

and more likely.

Figure 6. Next Fib-based trading interval March 14 (+/- 3 days).

Figure 7. Next Gann-based turn date set for March 14, after that May 1.

Page 9: Intelligent Investing, Weekly Digest · PDF fileWe have 3 timing/cycles ... Our short term chart (ST-SMA, for traders to swing traders) changed ... Gann-turn date also fits with our

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All Bradley Turn Dates for 2017

January 18 (50/100 Long Terms Power)

January 30 (55/100 Middle Terms Power)

March 20 (100/100 Long Terms Power)

April 3 (31/100 Declinations Power)

April 17 (19/100 Bradley Siderograph Power)

April 19 (59/100 Middle Terms Power)

April 29 (19/100 Bradley Siderograph Power

May 5 (30/100 Declinations Power)

June 9 (61/100 Long Terms Power)

June 21 (100/100 Bradley Siderograph Power)

June 30 (100/100 Declinations Power)

July 4 (100/100 Middle Terms Power)

August 19 (17/100 Bradley Siderograph Power)

September 5 (17/100 Declinations Power)

September 7 (29/100 Bradley Siderograph Power)

October 7 (48/100 Middle Terms Power)

December 3 (23/100 Bradley Siderograph Power)

December 6 (100/100 Long Terms Power)

ALOHA

Soul, Ph.D.

©2017, Intelligent Investing. This copyrighted weekly periodical is published on non-stock market trading weekend

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or other use of the information or images is authorized. Legitimate news media may quote representative passages,

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