Wednesday, February 19, 2014

Market update

Previous market update here

VST turned Bearish (previous bullish from DJI 15572) as of close right now
ST remains bullish from DJI 15694
IT remains bearish from 15879
LT Bullish

Monday, February 17, 2014

Market update

Previous market update here

VST - Bullish
ST - Bullish
IT - Bearish (from DJI 15879)
LT - Bullish

According to me,

VST = hourly charts
ST = daily charts
IT = weekly charts
LT = Monthly charts

I trade the ST but provide recommendations for all time frames

Monday, February 10, 2014

Market update

The market has turned to a ST buy at Friday close. The last sell netted ~  862 DJI points (16462 - 15794).
VST - Buy
ST - Buy
IT - Sell
LT - Buy


Friday, February 7, 2014

Gold update

If you remember correctly, I predicted at the start of the year that Gold will fly into the 1500s before retreating to the bearish market. Many times in the past few months did Gold seemed that it would start a new bullish trend, but alas it keeps adjusting itself to the same area.

I was studying some past charts on yellow metal. I noticed something similar to the ongoing chart, albeit on a different time frame, you will see. During the techboom era, you can see that Gold formed a nice rounded bottom before zooming up. The price was tagging the (monthly) EMA 12 with a rounded bottom all along before spiking sharply higher into the next bull run.

Look the weekly chart below: 

I propose that the EMA 12 tagging will go on for the next few weeks. The breakout could be confirmed when the price crosses $1350, and then to ~ $1550. I will be happy to sit out this churn and chop before that.A double bottoms is in place. If you take a position now (aggressive investor!), have your stop below that W low.



Saturday, February 1, 2014

Market update

ST - Sell
IT - Sell
LT - Buy
While the decline this month has been steep, market held to the support (15675) last week. We could see a rally VST next week. I would not be a buyer of the rally till that ~ $DJI 16100 level (which is 61.8% of the decline from the top) is cleared. The 15675 level (= ~ SPX 1772) may be used as support/ resistance with stops by swing traders. I reckon swing traders dont need to trade/ open new positions between 15675 and 16100.  Hold on to your trades between that level. While traders can use the same range to buy the low and sell the high of this range. 
Wih such a clean support/ resistance levels, what is the need for indicators?

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