{"id":382026,"date":"2018-10-23T00:47:59","date_gmt":"2018-10-22T23:47:59","guid":{"rendered":"http:\/\/rinf.com\/alt-news\/newswire\/prison-planet-com-on-a-knifes-edge-markets-are-in-a-critical-phase\/"},"modified":"2018-10-23T00:47:59","modified_gmt":"2018-10-22T23:47:59","slug":"prison-planet-com-on-a-knifes-edge-markets-are-in-a-critical-phase","status":"publish","type":"post","link":"http:\/\/rinf.com\/alt-news\/newswire\/prison-planet-com-on-a-knifes-edge-markets-are-in-a-critical-phase\/","title":{"rendered":"Prison Planet.com \u00bb \u201cOn A Knife\u2019s Edge\u201d \u2013 Markets Are In A Critical Phase"},"content":{"rendered":"<div>\n<p>      <!-- START CONTENT --><\/p>\n<p><strong>Sven Henrich<\/strong><a href=\"https:\/\/northmantrader.com\/2018\/10\/21\/weekly-market-update-on-knifes-edge\/\"><br \/>NorthmanTrader.com<em><br \/><\/em><\/a>October 22, 2018<\/p>\n<p><strong>Last week\u2019s inside week produced a massive rally off of heavily oversold conditions, but then gave a large part of the gains back, closing just above the weekly 50MA, but below the 2016 support trend line leaving markets on a knife\u2019s edge. My suggestion to both bulls and bears here: Pay really close attention and keep a very open mind. Make no mistake here: This is a critical phase for these markets.<\/strong><\/p>\n<p>Let me walk you through some considerations.<\/p>\n<p>As mentioned in previous updates from a technical perspective the underlying weakness in the internals leading up to the September\/October peaks amidst tightening technical patterns and negative divergences (<a href=\"https:\/\/northmantrader.com\/2018\/09\/02\/lying-highs\/\"><strong>Lying Highs<\/strong><\/a>) was not a surprise.<\/p>\n<p>And if you view this recent correction through the lens of simply supply &amp; demand, this correction also makes perfect sense. After all\u00a0<a href=\"https:\/\/money.cnn.com\/2018\/09\/26\/investing\/insider-selling-stocks-buybacks\/index.html\"><strong>insiders cashed out<\/strong><\/a>\u00a0aggressively in September and then 2018\u2019s biggest artificial liquidity infusion, buybacks, temporarily ceased into the earnings window.<\/p>\n<p><strong>From a bullish perspective this correction will be simply another temporary dip before buybacks return and then stocks can embark on another major rally into the positive mid term seasonality window:<\/strong><\/p>\n<p><a href=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/mid-terms_0.png?itok=31jHHvIP\" data-image-external-href=\"\" data-image-href=\"http:\/\/www.prisonplanet.com\/sites\/default\/files\/inline-images\/mid-terms_0.png?itok=31jHHvIP\" data-link-option=\"0\"><img loading=\"lazy\" decoding=\"async\" src=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/inline-images\/mid-terms_0.png\" srcset=\"https:\/\/www.zerohedge.com\/sites\/default\/files\/styles\/inline_image_desktop\/public\/inline-images\/mid-terms_0.png?itok=31jHHvIP 1x\" alt=\"\" width=\"500\" height=\"343\" data-entity-type=\"file\" data-entity-uuid=\"ff17f26e-1be1-427c-983c-963123a7a477\" data-responsive-image-style=\"inline_images\"\/><\/a><\/p>\n<p>This may well happen and that is clearly the script many expect.<!-- [donotprint] --><\/p>\n<ul class=\"ppani\">\n<li>A d v e r t i s e m e n t<\/li>\n<li\/><\/ul>\n<p><!-- [\/donotprint] --><\/p>\n<p><strong>However, for counter balance, I\u2019d like to offer a couple of other considerations.<\/strong><\/p>\n<p>Firstly, in regards to the mid term seasonality window, let\u2019s be clear, 2018 so far has not followed the mid term seasonality script very well. It would have called for a market peak in April, then a low in to late September\/early October. None of that has happened in 2018. We saw a first peak in January and a low in February and then another peak in September. So if one is relying on a mid term seasonality script they are relying on a pattern that hasn\u2019t really applied all year.<\/p>\n<p>But as you see in&#8230;<\/p>\n<\/div>\n<p><a href=\"https:\/\/www.prisonplanet.com\/on-a-knifes-edge-markets-are-in-a-critical-phase.html\">Read more<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>Sven HenrichNorthmanTrader.comOctober 22, 2018 Last week\u2019s inside week produced a massive rally off of heavily oversold conditions, but then gave a large part of the gains back, closing just above the weekly 50MA, but below the 2016 support trend line leaving markets on a knife\u2019s edge. My suggestion to both bulls and bears here: Pay [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[519],"tags":[],"class_list":{"0":"post-382026","1":"post","2":"type-post","3":"status-publish","4":"format-standard","6":"category-newswire"},"_links":{"self":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/382026","targetHints":{"allow":["GET"]}}],"collection":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/comments?post=382026"}],"version-history":[{"count":0,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/posts\/382026\/revisions"}],"wp:attachment":[{"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/media?parent=382026"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/categories?post=382026"},{"taxonomy":"post_tag","embeddable":true,"href":"http:\/\/rinf.com\/alt-news\/wp-json\/wp\/v2\/tags?post=382026"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}