Thursday, 25 July 2013

ASX 200 back above 5000

The ASX 200 has spent most of the week trading above 5000 and remains there in after hours trade. I might become interested in this market in a bearish sense if it closes the week back below 5000. Failing that, if I am going to be bullish equities, I prefer to be bullish US equities as they are close to blue sky territory, while ASX 200 is floundering some 30% below its all time peak.

S&P 500 September contract breaks yesterday's trend line but has it found new trend line support?

S&P 500 September contract hourly chart illustrates the break of yesterday's trend line but begs the question, has the market found new trend line support? If so then it needs to remain above today's low.

Zooming out to the daily chart of the futures for the cash index once again shows the break of yesterday's trend line. The moving averages indicate that the trend at this time frame is (screamingly) up. To my eyes, a move below the mid-June high is needed to challenge the up trend, at this time frame. Don't get time frames muddled.

AUD/USD trending lower with strong resistance overhead between 94 and 97

Currently the weekly chart is my preferred time frame for observing the AUD/USD. I imagine most traders prefer daily or intra day, but I find weekly charts help me implement the "hope while you're ahead" rule, which in my opinion is THE most important trading rule of all, an even more important contributor to profitability than "cut your losses", though of course that one is also essential. I think the ability to let winners run is what divides the good traders from the great traders. I'm not saying I have the keys to the kingdom, simply relaying my observation..

Sorry no EUR/USD or GBP/USD charts as they currently make no sense to me

If after looking at a chart for five seconds I can't see a pattern or trend, I move on to the next chart.

Gold turned lower from overhead resistance, next leg lower soon?

Gold turned lower from overhead resistance, now watch for a possible move below the 40 day moving average for an indication that the next leg lower has begun.

Silver back below 40 day moving average, beginning new leg lower?

Daily chart shows Silver back below the 40 day moving average, beginning a new leg lower? Watch for a (possible) break below the trend line.

Weekly chart zooms out and shows a long term measured target of around 1360, calculated by subtracting the (log scale) height of the descending triangle from the breakout level.