New highs yesterday from S&P and anyone who followed our analysis could have at least made a profit of 16 points (1416-1432). If one bought above support at 1397, then profits could be more than 32 points. Since last week I mentioned that our initial target is around 1450. The 1400 level is probably going to be now an important intermediate term support. This price level is going to be the base of a new upward wave that will try and reach 1500.
We mentioned many times that the downward move was corrective and that an upward move was expected due to that fact. That is why one should have bought near the 1400 level. The rising pattern from 1396,56 looks impulsive and could end today near 1440. The following correction (1415?) could give us a clue on what to expect the following weeks. More upside action or the break of 1400 and the start of a correction?
For more info on how to trade this index don't hesitate to contact me. Thank you for reading my thoughts.
Hi Alexander. How's my favorite Greek? lol
ReplyDeleteI very seldom even visit Daneric's blog any more for obvious reasons but I did swing by there today and read your comment. I have no interest in commenting on that blog but I'd have to agree with you fully. If that was the US dollar chart that Danno was looking at instead of equities, I have no doubt whatsoever that he would indeed view it as being bullish.
That's a problem many people have... a bias that's just so firmly ingrained that they just can't get rid of it. I've had that problem all my life but have almost gotten rid of it now. I'd be a lot better off if I'd gotten rid of it 10 years ago but better late than never. That doesn't mean that all of a sudden I've switched over to a bullish bias... it's just that I don't think I have a bias at all anymore.
That being said, right now I can absolutely see implications so bullish that I'd be called a heretic for even talking about them. Of course it would almost be an end of the world scenario because commodities prices would be so high that the entire global economy would grind to a halt. People would starve to death by the tens of millions. But the bankers of the world couldn't care less about that... they don't care about humanity one iota.
Right now I'm sure starting to see the possibility of a real upset in the making... with prices of equities AND commodities rising much higher than the bears could stomach to even think about.
I'm short at the moment but not in too much trouble. I'm kind of caught waiting for the next little pullback which I think 'is' coming very soon, but I'm starting to believe it will be minimal. The dollar has suddenly taken a very bearish turn, the Euro suddenly stronger (although I don't know why because I think it should be tanking with the announcement of Draghi's plans).
Also, the Australian dollar seems to have bottomed. So the Aussie:Yen pair is all of a sudden looking rather bullish as well, which of course is very bullish for equities. And then there's the issue with gold and silver. There's no question what they are expecting... a ton of inflation (and that includes equities). With all these things added up, man I just can't see any reason to be bearish equities right now.
Ποτέ δεν έχω συνάντησα έναν Έλληνα που δεν μου άρεσε. Όμορφη άνθρωποι ... με υπέροχο φαγητό.
Wishing you the best,
AR
thank you for your kind words!!and let me tell you that I feel the same way regarding the possible bullish scenario you speak of...being labeled as a heretic is the least...they are going to send us to the psychiatrist!!
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