This system is a swing trading system that attempts to capture medium term trend moves. It is based on the daily time frame so as to avoid the intraday chop. It is simple in structure and has proven highly effective over the last 12 months. It is always "in" the market.
Current System Positions :
Indicies:
SPX 500 - Long 1810.80, Stop 1810.80, TP1 1862.0.
DOW 30 - Long 16167, Stop 16167, TP1 16677.
Nasdaq 100 - Long 3235, Stop 3490, TP1 3352 hit. Awaits reversal Signal to close.
DAX 30 - Long 9274, Stop 9274, TP1 9575 hit. Awaits reversal Signal to close.
Commodities:
GOLD - Long 1223.65, Stop 1223.65, TP1 1268.25.
Silver - Long 20.09, Stop 19.30, TP1 20.87.
WTI Crude - Short 95.41, Stop 95.41, TP1 90.03.
FX Pairs:
EUR/USD - Short 1.3664, Stop 1.3893, TP1 1.3436.
GBP/USD - Short 1.6362, Stop 1.6603, TP1 1.6121.
USD/CHF - Long 0.8992, Stop 0.8992, TP1 0.9184.
USD/CAD (testing) - Long 1.0380, Stop 1.0775, TP1 hit. Awaits reversal Signal to close.
AUD/USD - Short 0.8903, Stop 0.9088, TP1 0.8718.
EUR/AUD - Long 1.5430, Stop 1.5022, TP1 1.5838.
GBP/AUD - Long 1.8530, Stop 1.8011, TP1 1.9052.
EURJPY - Short 142.43, Stop 145.64, TP1 139.22.
Sunday 19 January 2014
Dow 30 - Dont believe the hype.
When the daily tabloids and CNBC start talking about the bubble in the stock market and the correction that is coming, you can be pretty certain they're not going down yet.... recall the Gold hype and the bubble that didnt pop after the September 2012 highs.....we went sideways with Main street encouraged to buy anything under 1700.... with 2500 the target.....then ... down she came .. I think that a similar fate will occur in the stocks albeit a more violent correction.
From a macro perspective the reduction in QE by the Fed historically has provoked a sell off in the stock markets and this will occur again no doubt, but near term there is an interesting pattern unfolding in the Dow 30 that would encourage another leg to new all time highs.
Currently, my daily signal remains long from 16167 basis the cash market from the 18th December. The 61.8 Fib expansion has been achieved at 16488 with the initial profit target set at the 100 Fib expansion at 16677.
Looking at the 4hrly chart below, an inverse Head and Shoulder pattern has formed with the neckline at 16491. Should the pattern play out, the target sits at 16770 which is also the 1.618 Fib extension of the recent minor correction from 16531 to 16239.
From a macro perspective the reduction in QE by the Fed historically has provoked a sell off in the stock markets and this will occur again no doubt, but near term there is an interesting pattern unfolding in the Dow 30 that would encourage another leg to new all time highs.
Currently, my daily signal remains long from 16167 basis the cash market from the 18th December. The 61.8 Fib expansion has been achieved at 16488 with the initial profit target set at the 100 Fib expansion at 16677.
Looking at the 4hrly chart below, an inverse Head and Shoulder pattern has formed with the neckline at 16491. Should the pattern play out, the target sits at 16770 which is also the 1.618 Fib extension of the recent minor correction from 16531 to 16239.
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