14/03 Friday market update

Posted on Posted in Weekly Featured Articles

14/03 Friday market update

DOW/WALL ST: Trend direction is still up but peak may be at hand

China weak data spooks the market again. SP drops to new low 1841 but bounces back to slightly above the previous support 1845. If SP able to hold and surge from here but without creating a new high, then there is a reasonable possibility for me to think this is dangerous DISTRIBUTION which may lead to a BIG correction around 24th March-April the 5th, which may last for 4-8 weeks. In other words, this correction could be a Major Wave 4 swing down.  Dow is still not able to create new high which means it is creating intermittent divergence..

ACTION

Aggressive trader (1-5 days): Hold SP short entry at 1867-1875

Conservative trader (Major trade): Q to short 1885-1895

GOLD SILVER: If the tension between Russia/Ukraine does not ease, Gold is likely to hit 1430 for a shoert term Cycle top. Easing is not on sight at all.

ACTION

Aggressive trader (1-5 days): Hold Long in gold and silver. Those who has not entered may consider 1362-65 for a target of at least 1384

Conservative trader (Major trade): Wait now to buy during the next Cycle low which is expected in May

ASX: Very weak and struggling. Following DOW but growing fear in China’ slow down and the breakdown in Copper might put extra dpwn ward pressure on ASX

ACTION

Aggressive trader (1-5 days) : 1. Hold FMG short 5.05-5.15 2. Hold BDR and SLR for more gains.

Conservative trader (Major trade): 1. Hold FMG short from 5.17. 2. Hold BDR and SLR for longer term– depends on Gold/Silver price NOTE Major trade need WAITING ( major account) with wider stop loss. Aggressive ( small account) is for quick trading only. Allocate 70% to major trade and 30% to quick trade.

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