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Latest Trading Diary


Link for this issue: http://tradingdiary.incrediblecharts.com/2016-07-22-markets.php
 


Pausing for breath

By Colin Twiggs
July 22, 2016 7:00 p.m. EDT (9:00 a.m. AEST)

Advice herein is provided for the general information of readers and does not have regard to any particular person's investment objectives, financial situation or needs. Accordingly, no reader should act on the basis of any information contained herein without first having consulted a suitably qualified financial advisor.

Please note

I have resigned as a director of Porter Capital Management Pty Ltd ("Porter Capital") and Porter Private Clients Pty Ltd ("Porter Private") as I find this interferes with my primary business (Incredible Charts). In future, I will no longer publish newsletters under the banner of Research & Investment nor issue investment updates for them. Alternative arrangements will be made to accommodate existing subscribers.

I do not work under an AFSL and would like to remind readers that any advice in these newsletters and on the website is provided for their general information and does not have regard to any particular person's investment objectives, financial situation or needs. Accordingly, no reader should act on the basis of any information contained herein without first having consulted a suitably qualified financial advisor.

Pausing for breath

Dow Jones Global Index is pausing for breath after having broken resistance at 316. Narrow consolidation above a new support level is a bullish sign. Follow through above the October 2015 high of 320 would add further confirmation. Momentum troughs above zero also signal trend strength.

DJ Global Index

North America

The S&P 500 has similarly paused for breath, consolidating in a narrow flag over the last week. Flags are normally a continuation signal but I suspect we may see retracement to test the new support level at 2130 before the index advances much further.

S&P 500 Index

* Target calculation: 2100 + ( 2100 - 1800 ) = 2400

Rising 13-week Momentum on the Dow Jones Industrial Average weekly chart signals a primary up-trend. Retracement that respects support at 18000/18300 would confirm.

Dow Jones Industrial Average

* Target calculation: 18000 + ( 18000 - 15500 ) = 20500

Europe

Germany's DAX recovered above 10000 after finding strong support, evidenced by three large tails, at 9500. Breakout above 10500 would confirm a primary up-trend.

Dow Jones Euro Stoxx 50

* Target calculation: 10500 + ( 10500 - 9500 ) = 11500

Boosted by the falling Pound, the Footsie has already signaled a primary up-trend. Retracement that respects 6500 would confirm.

FTSE 100

* Target calculation: 6500 + ( 6500 - 6000 ) = 7000

Australia

The ASX 200 broke through resistance at 5400, signaling a primary up-trend. Expect retracement to test the new support level. The trough above zero on 13-week Twiggs Momentum suggests a healthy up-trend.

ASX 200

* Target calculation: 5400 + ( 5400 - 5100 ) = 5700



In Venice in the Middle Ages there was once a profession for a man called a codega—a fellow you hired to walk in front of you at night with a lit lantern, showing you the way, scaring off thieves and demons, bringing you confidence and protection through the dark streets.

~ Elizabeth Gilbert: Eat, Pray, Love



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