Writing a blog post about the market is much harder when the market is open. So far it appears that the S&P could be tracing out a surprise rally to 1800. In other words, during the midst of the Tom DeMark 40% crash debate, a wave 1 bottom was likely put in yesterday morning and the S&P is embarking on a wave 2 retracement. It is the top of this retracement, if it is indeed ocurring, that could yield a sharp decline such as what DeMark refers to.
The stop for this scenario is currently 1751.30. These can shift as waves develop. At the time of this writing, for example, I would dump any long position below 1755.56 (currently long SSO).
There is also the possibility that, as previously posted, yesterday's low was a wave 4 and that the market is on the way to new all-time highs in a final wave 5. Only time and structure will tell.
Twitter got nailed on earnings and opened below its 61.8% level but has reclaimed it. It was discouraging, purely from a user standpoint, to hear the CEO discuss his plans for monetization on the conference call. With user growth stagnating, he plans to add more of the things that I strongly dislike such as timeline clutter.
As if having to wade through endless auto-expanded photos wasn't enough, it sounds as if we can look forward to video too. It would be fine if Twitter enabled us to customize our streams, but that would defeat its real purpose as public company, which is to sell ads.
In this regard, I see the Facebook as the winner.
My prediction is that Twitter will need to change in order to survive as a public company, and its needs as public company (to enable advertisers to deliver more content) are the very things that will decrease my engagement with Twitter.
Facebird and the rest of social media may be in its glory days right now. However, I share the recent socionomic opinion of Elliottwave International's Hochberg and Kendall: that social media will devolve into a venue for being anti-social.
That is something I will not like and will not follow.
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