In light of the days action the system exited its Dow Jones and Nasdaq100 signals in which the system netted large gains such as over 750 points for the Dow Jones in less then 7 trading sessions. In light of the action, technical and fundamental, the system has now triggered two more new signals for the Dow Jones & Nasdaq100.
This is because the market is stretched in a short space of time and the fundamental news about the debt saga has this current decline in the media spotlight – markets tend to do the opposite either instantly or soon enough. 12000 is pivotal for the Dow Jones, the market also has underlying support 11900 and 11835. Taking these out could well change the story but for now we are standing firmly with the system triggers. It seems like we are in a top making formation and these things can take months. So up and down in large ranges will be likely for now.
Go very short the FTSE on further break below 5700. Profits should be booked at 5500.
Although the markets have been declining nicely the TMS system has exited the Dow Jones & Nasdaq100 signals partly because support had held the Dow Jones nicely at 12000 and the Nasdaq has been painting a mixed picture.
In addition to these comments the markets have been over stretched in a short space of time and of course this can be totally meaningless IF a real move kicked off BUT for the moment the 55 day low needs to be taken out. So for the moment for are happy to note that the Dow and co is simply stuck in a vicious range. This is also supported by other analyst comments.
Finally the Dow also has underlying support at 11900 and the 55-day low stands at 11835. Should this low be penetrated then we would expect the system to fire another Sell signal as a move south could hammer stock markets down. For now we’re happy with the 751-point Dow Jones gain coupled with the 79 points on the Nasdaq100 and at this point in time it’s best to stand aside.
Go long the FTSE at 5879 – target is 6000. Short at a break below 5800.
Thanks to Jeff at T2W – lets hope this pans out!
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Markets are stretching towards upside limitations, which is coinciding well with the current Eurozone debt plan (Greece) that is hovering high in the media. It is common knowledge that in light of the debt plans, markets are moving higher – worldwide knowledge (media). Therefore we are happy that the system has made the following triggers – Contrarian angle.
Market staged a big comeback yesterday but historically that is not normally a positive. The Nasdaq on the other hand was leading the way higher, which can be a lead indicator in itself but not much to go by in light of recent action. Are the markets crashing? No! This is a corrective move AND the media is unwrapping it all as its unfolding.
The real moves happen without media attention. This will come back and it’s hard to say if 12000 is over – the contrarian in us says possibly not yet. The TMS system bagged 234 points with the Euro short at 14404! The Sterling is currently range bound in our opinion. When Joe blogs thinks its time to sell his shares after reading all the media news about the market falls that’s when this baby will turn. We of course need to see where we stand at the finish today. Markets are volatile – Our 55 day low was breached yesterday but market managed to turn around and close above during yesterday’s session.
A bounce rally in the coming days will be likely – how large could it be? Well that depends on what actually propels. We will have leaders coming out with talk of stability and that should do the job. At this stage 11500 on the Dow Jones needs to hold in order for bounces/rally’s to emerge. The 55day could well feature again in the coming days at least for the market to try and hit it.
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