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More Market Clues?
Darshan Sanghrajka | Feb 4, 10 | 213 Views | Topics: Business
Darshan's Daily Market Ponderings
More Market Clues?
Thursday 4th February, 2010
Morning all!
So sorry for my absense the last couple of days - things have been hectic with work but as you can see nothing much is happening on the indices - since Monday.Today's thoughts are going to be technical, as there is not much to say about the fundamentals at the moment. Essentially, I have my head around the game plan now. There are two options here:
1) The Dow goes to 10400-450 and then the bear flag on the daily is completed (as per original plan outlined two weeks ago) and then drops up to 700 points towards 9700. Whether it will get all 700 points is another matter but we do know that the bear trap will be sprung somewhere within that range. Once that happens, the short-covering should create a fast rally towards 11000-11250. That should then give us the top we need for the big guys to have offloaded all their rubbish and for them to switch side to shorting any spikes. Once that happens, we are going to start the journey down to at least 9000 to begin with and then down to below the low of March 2009.
So look for the Dow to rocket up to 10400-450, the SPX to 1115 and the FTSE to 5350. Then we can reassess. The plan is for a big drop from here but if the bear trap has already been sprung, we will just keep going up. I am still sticking with lower, as I see Gold heading to at least $1050, before it takes off again for the final blow off top.
2) We break 10200, 1090 and 5190 on the FTSE 100 today and we head lower to complete this down move immediately. In other words we head towards 9700, 1030 and 4950 before taking off.
It is all very tricky, as the market is being controlled brilliantly right now. No proper clues are being given away and most of the movement is happening in the forex market. Interesting hey. The Euro hit my long target of 1.4020 and then turned down soon after, as predicted. So that was a good trade highlighted to you way ahead of time.
As I always say the risk is always there for a full on crash - the closer we get to liquidity withdrawals, the more there is a need for the big guys to pull dirty tricks to keep the markets up. The more they do that, the more chance there is that they will just give it up and switch to shorting the market hard.
Stay safe and happy trading today.
Darshan
*The information contained on this website and from any communication related to the author’s blog is for information purposes only. The analysis and the market recap do not hold out as providing any financial, legal, investment, or other advice. In addition, no suggestion or advice is offered regarding the nature, profitability, suitability, sustainability of any particular trading practice or investment strategy. The materials on this website do not constitute offer or advice and you should not rely on the information here to make or refrain from making any decision or take or refrain from taking any action. It is up to the visitors to make their own decisions, or to consult with a registered professional financial advisor.
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