Dear Friends,
In my opinion, the S&P500 is showing the same signs as the Dow Outlook as per the Daily Chart attached below. Even the Stochastics Divergence is the same, i.e. the Stochastics has moved up ahead of the S&P. Thus, my Outlook on the S&P500 is exactly the same as the Dow Outlook i.e. Short Term Symmetric Triangle Formation.
I would warn that the Stochastics is not a very reliable indicator because it is overly sensitive, and thus, I would not encourage reading too much into this divergence.
I also would not trust the Resistance Level of the Triangle, which may retrace a little further upwards than current levels, especially in the later part of the consolidation period as it nears the apex, meaning that if you use the Resistance Level as is, you may get False Breaches, because the slope is too steep compared to the Support Slope, so I would put the order a little further away than currently shown. The market has a way of changing its price pattern lines occasionally. So, in my opinion, I would rather get a slightly more expensive price than to be caught in a number of False Breaches as the Pattern Lines change.
Best wishes,
Ooi
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In my opinion, the S&P500 is showing the same signs as the Dow Outlook as per the Daily Chart attached below. Even the Stochastics Divergence is the same, i.e. the Stochastics has moved up ahead of the S&P. Thus, my Outlook on the S&P500 is exactly the same as the Dow Outlook i.e. Short Term Symmetric Triangle Formation.
I would warn that the Stochastics is not a very reliable indicator because it is overly sensitive, and thus, I would not encourage reading too much into this divergence.I also would not trust the Resistance Level of the Triangle, which may retrace a little further upwards than current levels, especially in the later part of the consolidation period as it nears the apex, meaning that if you use the Resistance Level as is, you may get False Breaches, because the slope is too steep compared to the Support Slope, so I would put the order a little further away than currently shown. The market has a way of changing its price pattern lines occasionally. So, in my opinion, I would rather get a slightly more expensive price than to be caught in a number of False Breaches as the Pattern Lines change.
Best wishes,
Ooi
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2 comments:
Gold's recent slump bewilders investors
World Gold Council points to fund liquidation, stronger dollar, stock markets
--- where funymentals got trumped out by the charts---nothing is safe
longer term gold should be kept under ur mat in ur hut on ur plantation surrounded by barbwire & victors dog.
Haha, I like your comments on keeping gold under the mattress, guarded by Victor's dog. :)
Unfortunately, this is the Era of Asset Deflation (Negative Economic Sum Game), the only time when holding assets is loss making in general.
The issue that I've always asked people about 6 months to a year ago, was whether they were worried about asset deflation or consumer inflation? Consumer Inflation is usually only a small part of a person's total assets and income, and thus, if one was concerned with Asset Deflation, as I was, you just have to live with the fact that there would be some erosion on income because of consumer inflation.
The problem was that quite a number of people focused on how to beat consumer inflation with an asset investment strategy, and assumed that Assets will also inflate in tandem. This was a false belief, which Soros would call a Market Untruth, which has now turned around to bite investors. A most unfortunate event, and definitely not the last in a coming series of unfortunate events.
Best wishes,
Ooi
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