ES Morning Update July 26th 2019

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It's Friday... Yippee! The weekend is almost here. I loved the weekend as a young man in my early 20's but now in my 50's all the weekend has for me is work around the house and property, so it's not that exciting anymore. Cutting grass on my riding lawn mover though is fun, but the weed eating sure does a number on my legs. I should wear long pants but it's too hot out so I get slapped with grass blades a lot.

Anyway, for today we see the futures up a little after a nice move down yesterday. Wish I would have seen that one coming but I didn't. Odds are still good for higher prices but I get the feeling we are in a pullback mode first, and yesterdays move down was just an A wave. If today's rally up closes near the high for the day, and still stays under the recent all time high, I'd have to think it was a B wave up of some degree. And that further suggests a C wave down on Monday to take out the lows from yesterday. Just speculation at this point but that always the case in the stock market.

I'll probably risk a small short over the weekend if this move up happens today. There's certainly no guarantee of it dropping in a C wave on Monday as the B up could continue that day and drop in the C wave on Tuesday. Or the B could take out the all time high and end up not being a B wave after all and some wave 5 up or something? Hence the reason I'll do a small short as it's just a guess. But if we do see a B up today and C down on Monday then that entire move would likely be a wave 4 down of some degree and a strong buy signal will trigger at the close for a wave 5 up to start.

That is something I'll be heavy long on if it happens. It will have very strong odds of a long lasting rally to start back up after the closing low on Monday, and it might be the rally that takes us up to the final target highs I have for this year going into August and September (mentioned on yesterdays post). A blow off top is very likely as there are many reasons to believe a recession is coming, like this final high is one that will last for a long time I think. We'll cross that road when we get there I guess. Have a great weekend and you men try to enjoy the chores you do around your house this Saturday and Sunday.