Monday Morning Update
By Colin Twiggs
July 17, 2006
July 17, 2006
In response to a number of requests, we will trial a detailed
weekly newsletter on Thursdays and a quick update at the start
of the week. Your feedback
will be appreciated.
These extracts from my daily trading diary are for educational purposes and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use.
These extracts from my daily trading diary are for educational purposes and should not be interpreted as investment advice. Full terms and conditions can be found at Terms of Use.
USA
The Nasdaq 100 shows little sign of completing a bear
trap. Watch for a retracement that respects the new resistance
level at 1520 to confirm the primary down-trend.
Twiggs Money Flow (21-day) holding below the zero line
signals strong
distribution.
The Dow Industrial Average is testing primary support at
10700. A fall below this level would signal reversal to a
primary down-trend.
Twiggs Money Flow (21-day) holding below the zero line signals distribution.
Twiggs Money Flow (21-day) holding below the zero line signals distribution.
The S&P 500 displays a long tail at [5], signaling
support at 1235, but
Twiggs Money Flow (21-day) holding below the zero line
signals
distribution. Expect a test of primary support at 1220. A
close below this level would signal reversal of the primary
trend.
Gold
Spot gold is headed for a test of the recent high at $730, but a strengthening dollar may cause a retracement to test initial support at $640/$650.
Spot gold is headed for a test of the recent high at $730, but a strengthening dollar may cause a retracement to test initial support at $640/$650.
Source: Netdania
Currencies
EUR/USD: The euro broke through initial support at 1.27 USD and is headed for a test of intermediate support at 1.25. A close below 1.25 would indicate a test of primary support at 1.185/1.165.
EUR/USD: The euro broke through initial support at 1.27 USD and is headed for a test of intermediate support at 1.25. A close below 1.25 would indicate a test of primary support at 1.185/1.165.
Source: Netdania
United Kingdom
The FTSE 100 is following other markets into a test of primary support levels, in this case at 5500.
The FTSE 100 is following other markets into a test of primary support levels, in this case at 5500.
Japan
The Nikkei 225 respected the 100-day exponential moving average from below: a strong bear signal. Expect a test of support at 14000/14200. A close below this level would confirm the primary down-trend.
The Nikkei 225 respected the 100-day exponential moving average from below: a strong bear signal. Expect a test of support at 14000/14200. A close below this level would confirm the primary down-trend.
ASX Australia
The All Ordinaries is following other markets down. Expect a test of primary support at 4800.
The All Ordinaries is following other markets down. Expect a test of primary support at 4800.
For more background information, read About
the Trading Diary.
Author: Colin Twiggs is a former investment banker with almost 40 years of experience in financial markets. He co-founded Incredible Charts and writes the popular Trading Diary and Patient Investor newsletters.
Using a top-down approach, Colin identifies key macro trends in the global economy before evaluating selected opportunities using a combination of fundamental and technical analysis.
Focusing on interest rates and financial market liquidity as primary drivers of the economic cycle, he warned of the 2008/2009 and 2020 bear markets well ahead of actual events.
He founded PVT Capital (AFSL No. 546090) in May 2023, which offers investment strategy and advice to wholesale clients.