DOW, USD, EURO, ASX, GOLD In Critical Times

Posted on Posted in Daily Blog Post

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I made my observation/predictions regarding the U.S market about 12 hours before it opened last night (11.30pm in Sydney). It was written to my paid subscribers. I said that when the market’s prevailing condition is bullish, U.S investors will always come back to buy more after the long weekend/memorial holiday. True to my prediction, the U.S market bounced back about 105 points after spiking up more than 170 points in the first 2 hours of trading. This spike was also within my expectation but it failed to take out the previous old time high of 15538.

Dow hit 15523 last night (close to previous all time high of 15538) and does it looks like forming a double top? SP 500 hit 1675, which is about 12 points away from the old time high of 1689 and probably can be considered as secondary top; could it be a sign of divergence or a bearish sign? The Dow Transports were only up 2.07 at 6397.77. This is the third time the major indexes pushed to day highs and the Transports Index negatively diverged. What about the possible anticipated turning point if I take the Gann’s angle of 360 degrees pattern (from last June low to the coming June, which is only days away) into consideration?

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Dow’s volatility based on 30 mins chart. Sign of weakness.

Have you realised that the Dow price level has exceeded more than 10% above the 200 days moving average? This is quite excessive!

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Is the near term correction likely underway? Technical and Cyclical timing details and trade alerts are reserved for subscribers to act on recommendations.

It seems the majority of the people (MSM of course) think that United State’s economy is back to its glorious day. Real estate is rising. Consumer confidence is on fire. Last night, The Conference Board released the report that ‘Consumer confidence’ rose to a five-year high in May, with consumers more upbeat about the economy over the next six months. More and more people are jumping on the bull bandwagon to La-La land. Economic optimism and stocks sentiment has risen to a historical high which is generally unsustainable at least into the near term. I think the ‘fake’ optimism will not last for too long. Make sure you know how and when to trade in and out to maximise your gain and minimise your loss.

Think about it clearly - all global markets are interconnected. China is facing a strong headwind of growth with anything above 7.5%. Many parts of Euro zone (France, Italy, Spain, and Germany –close to recession) are in recession and Japan is still limping on, managing to survive on ‘steroid’- stimulus measure. The U.S’s debt is not getting better; in fact, it is rising and is still on ‘steroid’ measure- Q.E. I will back this point up with more recent bearish data in the next article.

All these major nations, which contribute to about 70% of the global economy, are interconnected. Do you think the U.S can roll on with the current anaemic growth of 2% to achieve 5-7% growth in the next 2 years without the support of all these major economies? You have to also remember that the ‘U.S’s demographic is aging. I have kept on saying ‘enjoy the ride’ while the bull is alive. But make sure you know when to stop.

Stock markets (Dow) are slowly unfolding into a ‘critical’ period when weak hands will be shaking out like historic gold crash in 16th April. Make sure you know how and when to trade in and out to maximise your gain and minimise your loss during this period of ‘OVERDONE’ and the looming panic cycle.

All my members have been alerted with the looming expectation of the market direction in regards to short and medium time frame.  Technical and cycle timing details of Dow, USD, EURO, ASX, Nikkei, and Gold Silver will be released by next week via my Gold Silver Wall’s monthly report to all my happy paying subscribers.

About gold and silver – where to from here? Gold is also now moving in a short term transition and critical period; you can see the volatility and manipulation on the chart below. GS and the culprits are still trying to use paper gold (non-existing) to suppress the price from 1400. You can see the gold price plunges $20 quickly as soon as it reaches 1400.

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Gold: See the crazy volatility based on 30 mins chart. Paper Gold manipulation

To all my loyal followers and readers:

First of all, thanks for reading my market blogs.

Normally, I recommend longer term lower risk trades based on a ‘major move’ (with the probability of making fat profits) to my paid members. Occasionally, I suggest short term (with high probability) trades based on the anticipated turning points. If that occurs, I will not hesitate to ask my members to act.

So far, I have recommended 7 short term trades for the last 4-5 weeks – 3 trades are closed with profits. 4 current open trades (USD index, Euro-USD, DOW and Gold) are in the profit zone. However, the outcome of the current open positions (when I made the call to close) may be different because prices are subjected to change (upon closing) due to daily and short term volatility. Be realistic, I can’t guarantee every trade is a winner but I will try my best to guide you to achieve consistent and good return. Most importantly, I will tell you to exit before the ‘panic or crash cycle’ hits at least 90% of the traders and investors.

One of my paying Sydney members rang me yesterday asking why I did not recommend ASX bank stock to them after telling him I closed my ASX bank stock Westpac Banking Corporation (WBC) this morning for a good decent profit (after jumping in on certain technical criteria yesterday). Due to the time lapse, much daily volatility, price fluctuation and the fact that I did it with an intraday mindset, I did not send out an alert. But this winning trade will NOT be recorded. This incidence certainly will not affect any future alerts because I do not suggest any intraday trades to all my members. Intraday trades are not suitable for any member unless you trade side by side with me.

If I ever mention intraday trade again, it will only serve as an educational purpose. Ignore the intraday trade. I trade for myself on some occasions only. I am waiting to apply H3m (hidden money momentum method) very frequently for short term ASX small stock trading when the time is right. H3m is not part of the newsletter. But occasionally, I will give you the ASX bonus trades.

In regards to DOW, SP500, Gold, Silver, USD, EURO, NIKKEI ( aii included in the newsletter), I give the specific price and sometimes a tight range (due to excessive daily price fluctuation) to all of my members. Basically, we are all able to make entry at a similar price. All trades are in Queue order before the market opens and therefore, everybody is given sufficient time to act fair and square.

One last thing I want to mention here is that the ASX is still in meaningful correction, and soon, I will start to recommend more stocks for you to LONG, especially blue chip stocks.

Sincerely,

John

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