Incredible Charts Stock Market Charting Software. Home Site Map About Us Privacy Policy Advertise (pdf) Contact Us
 
 
diarysearch

Latest Trading Diary


Link for this issue: http://tradingdiary.incrediblecharts.com/2016-05-26-markets-economy-gold.php
 


The storm is almost over

By Colin Twiggs
May 26, 2016 5:00 p.m. AEST (3:00 a.m. EDT)

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.

The storm is almost over ....for now. Ably supported by the Fed's dovish retreat on interest rates, massive stock buybacks and another stimulus program by the Chinese, markets are growing in confidence. While there are still fundamental concerns, from a technical view stocks are regaining lost strength.

Short retracement of the S&P 500 below resistance at 2100 suggests a breakout ....as does a trough above zero on 13-week Momentum. Follow-through above 2130 would confirm, offering a target of between 2300 and 2400*.

S&P 500 Index

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

Europe

Germany's DAX recovered above 10000, signaling continuation of the rally. Recovery of 13-week Momentum above zero would be a bullish sign, while a trough above zero would indicate a primary up-trend.

DAX

The Footsie respected support at 6000, suggesting another advance. Follow-through above 6400 would signal a primary up-trend. 13-Week Momentum above zero is a bullish sign.

FTSE 100

* Target calculation: 6400 + ( 6400 - 6000 ) = 6800

Asia

The Shanghai Composite Index remains weak, headed for another test of support at 2700 despite a surge of activity in housing. Indications that the Fed may raise interest rates in June increase pressure on the Yuan. 13-Week Twiggs Momentum below zero continues to indicate a strong primary down-trend.

Shanghai Composite Index

* Target calculation: 3000 - ( 3600 - 3000 ) = 2400

India's Sensex is bullish, testing resistance at 26000 after a short retracement. Breakout above 26000 would indicate that a bottom is forming (the down-trend is losing momentum). Although retreat below 25000 would warn of another test of primary support, support is likely to hold. Recovery of 13-week Momentum above zero is a bullish sign. A trough above zero would signal a primary up-trend.

SENSEX

Australia

The ASX 200 is testing resistance at 5400. We are entering the seasonal sell-off before financial year end, so expect retracement to test support at 5200. In the present bullish climate, support is likely to hold. A trough above zero on 13-week Momentum would confirm a primary up-trend.

ASX 200

* Target calculation: 4700 - ( 5400 - 4700 ) = 4000



Think of how stupid the average person is, and realize half of them are stupider than that.

~ Will Carlin on Democracy

Disclaimer

Porter Private Clients Pty Ltd, trading as Research & Investment ("R&I"), is a Corporate Authorized Representative (AR Number 384 397) of Andika Pty Ltd which holds an Australian Financial Services Licence (AFSL 297069).

The information on this web site and in the newsletters is general in nature and does not consider your personal circumstances. Please contact your professional financial adviser for advice tailored to your needs.

R&I has made every effort to ensure the reliability of the views and recommendations expressed in the reports published on its websites and newsletters. Our research is based upon information known to us or which was obtained from sources which we believe to be reliable and accurate.

No guarantee as to the capital value of investments, nor future returns are made by R&I. Neither R&I nor its employees make any representation, warranty or guarantee that the information provided is complete, accurate, current or reliable.

You are under no obligation to use these services and should always compare financial services/products to find one which best meets your personal objectives, financial situation or needs.

To the extent permitted by law, R&I and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information. If the law prohibits the exclusion of such liability, such liability shall be limited, to the extent permitted by law, to the resupply of the said information or the cost of the said resupply.

Important Warning About Simulated Results

Research & Investment (R&I) specialise in developing, testing and researching investment strategies and systems. Within the R&I web site and newsletters, you will find information about investment strategies and their performance. It is important that you understand that results from R&I research are simulated and not actual results.

No representation is made that any investor will or is likely to achieve profits or losses similar to those shown.

Simulated performance results are generally prepared with the benefit of hindsight and do not involve financial risk. No modeling can completely account for the impact of financial risk in actual investment. Account size, brokerage and slippage may also diverge from simulated results. Numerous other factors related to the markets in general or to the implementation of any specific investment system cannot be fully accounted for in the preparation of simulated performance results and may adversely affect actual investment results.

To the extent permitted by law, R&I and its employees, agents and authorised representatives exclude all liability for any loss or damage (including indirect, special or consequential loss or damage) arising from the use of, or reliance on, any information offered by R&I whether or not caused by any negligent act or omission.



Visit us on:

30-Day Free Trial

Incredible Charts Pro 7
Free Download
Windows  Mac  Linux

My Account

My Account Login

What's New


 
Top of Page