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Bullish lead-in to the New Year

By Colin Twiggs
December 29th, 2013 5:00 p.m. ET (9:00 a:m AEDT)

These extracts from my trading diary are for educational purposes. Any advice contained therein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs and must not be construed as advice to buy, sell, hold or otherwise deal with any securities or other investments. Accordingly, no reader should act on the basis of any information contained therein without first having consulted a suitably qualified financial advisor. Full terms and conditions can be found at Terms of Use.



The S&P 500 broke resistance at 1810, signaling an advance to 1910*. Troughs high above zero on 13-week Twiggs Money Flow indicate strong buying pressure.

S&P 500

* Target calculation: 1810 + ( 1810 - 1710 ) = 1910

The FTSE 100 completed its correction with a break above the descending trendline. Troughs above zero on 13-week Twiggs Money Flow indicate buying pressure. Breakout above 6800 would offer a target of 7200*, but expect strong resistance at the 1999 high of 6950/7000.

FTSE 100

* Target calculation: 6800 + ( 6800 - 6400 ) = 7200

The Dow Jones Euro Stoxx 50 broke resistance at 3100, signaling an advance to 3350*. Troughs above zero on 13-week Twiggs Momentum indicate a healthy up-trend. Retracement to test the new support level is likely; respect would strengthen the bull signal.

Dow Jones Euro Stoxx 50

* Target calculation: 3100 + ( 3100 - 2850 ) = 3350

Germany's DAX similarly broke resistance at 9400, offering a target of 10200*. Troughs high above zero on 13-week Twiggs Money Flow indicate strong buying pressure.

DAX

* Target calculation: 9400 + ( 9400 - 8600 ) = 10200

India's SENSEX is testing resistance at 21200 after a correction that respected support at 20200. Breakout would signal an advance to 22200*. A 13-week Twiggs Money Flow trough above zero would indicate buying pressure and a healthy up-trend.

BSE Sensex

* Target calculation: 21200 + ( 21200 - 20200 ) = 22200

Japan's Nikkei 225 broke resistance at 16000, supported by a strong rise in the Dollar/Yen exchange rate. Breakout signals a primary advance with a long-term target of 19000*. Completion of a 13-week Twiggs Money Flow trough above zero suggests buying pressure and a healthy up-trend.

Nikkei 225

* Target calculation: 16000 + ( 16000- 13000 ) = 19000

A single cloud on the horizon, the Shanghai Composite Index is testing primary support at 2080. Failure of support would signal a primary down-trend with an immediate target of 1900*. Bearish divergence on 21-day Twiggs Money Flow indicates medium-term selling pressure, but recovery above zero would suggest support.

Shanghai Composite

* Target calculation: 2080 - ( 2260 - 2080 ) = 1900

The ASX 200 is lagging other markets because of negative influence from China. Bearish divergence on 13-week Twiggs Money Flow indicates selling pressure. Respect of resistance at 5450 would be cause for concern if followed by reversal below 5300. Breakout above 5450 and completion of a trough above zero on 13-week Twiggs Money Flow, however, would signal another primary advance, with a target of 5900*.

ASX 200

* Target calculation: 5450 + ( 5450 - 5000 ) = 5900



The difference between a successful person and others is not a lack of strength, not a lack of knowledge, but rather a lack of will.

~ Vince Lombardi

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