08:45am: This week will be eventful. Fed is expected to remove the "patience" from its interest rate policy statement. If so, markets will expect a rate hike in Jun Fed meeting. This is likely to put pressure on the markets in the intermediate term as the expected rate hike, the first since 2006, will be perceived as a game changer. If the above unfolds, USD can...
08:00 am: This week will be eventful. Fed is expected to remove the "patience" from its interest rate policy statement. If so, markets will expect a rate hike in Jun Fed meeting. This is likely to put pressure on the markets in the intermediate term as the expected rate hike, the first since 2006, will be perceived as a game changer. If the above unfolds, USD...
From the low of July 2011, we can see that we are in the 4th wave of the final leg of bullishness. Wave 4 still has a small leg to the downside in order to complete the necessary 5 waves to finish the triangle. 42.50 is the apt place to start buying the stock for a target of 60+. For a detailed wave count, click on wave-analysis.blogspot.in
08:17am: After yesterday’s massive short covering rally, the Dow futures are giving up some gains in the early morning trades. YMH5 is trading at 17836, 30 points lower than yesterday’s close. USD is again strengthening and may further strengthen if the 8:30 am data release is perceived to further support US economy strength. This will put pressure on the Fed to...
Set-up for Mar 09: YMH5 futures traced wide range day on Fri, Mar 06. Expecting continued weakness in the early going on the open on Mar 09. Daily PIvot at 17942 and 5 DMA at 18038 will be the initial resistance on any bounce. If 1st hr. hi is exceeded shorts should be closed. For instructional purposes only.
RIG is coming of divergence that sent price breaking resistance with momentum confirming the move higher by also making higher highs. RIG has since pulled back to a .618 retracement. I am looking for price to move past its most recent leg higher and test the 127 projection of this leg. With stops placed below the most recent swing point low, this trade offers a...
Wrap-up: Morning strong down move found support at 5WMA at 18014. Though too early to say, an outside week is forming on the weeklies.
A very strong resistance for DOWI at 18610 and a clear HS pattern forming !! Go short around 18610 and add more at 18793 for targets of 17063 and then a rebound till 18000 !!
The market is going through a period of volatility due to upcoming interest rate rises. Traders should see this volatility as a profitable opportunity. The risk/reward is great. The market sentiment is the same now as it peaked the last time in January, and a reduced, but still relevant correlation to the chart topping action in December. From a long term point of...
The DAX has had a huge rally of 36.51% from the October low, 22.55% in 2015 and 11.46% from the ECB's announcment of euro style QE. This is a huge rally that could enter some resistance with the start of the ECB's QE starting in March. next week the ECB meets on the 5th and could create a news reversal. IMO this current rally since the ECB announced QE could be...
I'm not implying the spx rally is over or a top is in. But looking at the channel the spx has been trading in since 2011 lows, there is not much room to the upside at the moment and believe by observation there is more room for the spx to pullback. My plan is to sell the hwb from highs to lows as long as it acts as resistance with a tight stop. Last week was the...
Charts are telling us to be very cautious, as soon as we get the 1st dip in the RED line below zero mark, we shall expect a convincing bounce only to find more panic ahead. ONLY time will tell when we get that scare drop.... Considering where we are today, probability of making significant NEW HIGH is very LOW, however a marginal NEW HIGH cannot be rules out....
Looking at where the weekly low was when MACD crossed negative and seeing how many points later the YM finally hit bottom, we get some consistency, and an average of -588 points left before the bottom is reached. It's like a submarine that suddenly fills it's ballast tanks, weighing it down (MACD crossing neg) and trying to figure how deep it will sink.......
You could do short term trades and short rallies or gaps higher on the daily. I'd rather be cash than making a firm decision today to go long or short an index. It is the first real trading week of the year and earnings season is this month and next. Patience is a good thing, itchy trigger fingers just to trade are not. This chart is a weekly time frame that...
Price is looking for support and will likely find it at the 200MA or one of the pivots S1 - S3. Look for heavy volume to signal possible selling climax.
Several indicators are already showing a start of a negative trend. The questions is how far will the DOW drop? The EMA 100, 200 & 500 have been providing support many times. In October however all of these levels were broken. My guess is that this time the DOW will go back to the EMA 500 level - if not any further. I listed three possible scenarios A (EMA 50), B...
Now it is a tough call to go long here, sideways at least.