January 2nd Daily Market Comments

Two major aspects that usually occur on the first day of the trading year. Evidence of what the big-money is going to be buying in the first quarter and the results of profit-taking. This year, neither is being demonstrated. That implies that what was acting well in the final few weeks of 2017 is continuing. There appeared to be some profit-taking on Friday, but today’s buying indicates that any profit-taking that was being pushed into 2018 is not yet occurring. Numerous charts are still showing relevant candlestick patterns that are not being disrupted today. Currently, there is no indication of any major change of investor sentiment or strategies that had already been developing prior to the new year. This merely implies to stay with the current trading strategy until there is something that shows a change of investor sentiment. This is why we recommend Trend Analysis.