Monday Morning Update
By Colin Twiggs
July 24, 2006
July 24, 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 retracement respected the new resistance
level at 1520, confirming the primary down-trend.
Twiggs Money Flow (21-day) has remained below zero for 3
months, signaling strong long-term
distribution.
The Dow Industrial Average respected resistance at 11050
and the 100-day
exponential moving average, a bearish sign.
Twiggs Money Flow (21-day) holding below the zero line
signals
distribution. The index is headed for another test of
primary support at 10700. A fall below this level would signal
reversal to a primary down-trend.
In a similar fashion, the S&P 500 respected
resistance at 1260 and appears headed for a test of primary
support at 1220. A close below this level would signal reversal
of the primary trend.
Twiggs Money Flow (21-day) holding below the zero line
signals
distribution.
Source: Netdania
Currencies
The US Dollar Index weakened over the last few days while gold was also falling. The two never continue in the same direction for long. Expect either gold to rally or the dollar to strengthen.
The US Dollar Index weakened over the last few days while gold was also falling. The two never continue in the same direction for long. Expect either gold to rally or the dollar to strengthen.
Source: Netdania
United Kingdom
The FTSE 100 shows a similar pattern to the Dow and S&P 500, and is headed for a test of primary support at 5500.
The FTSE 100 shows a similar pattern to the Dow and S&P 500, and is headed for a test of primary support at 5500.
Japan
The Nikkei 225 is in a primary down-trend, having respected the 100-day exponential moving average from below. The index bounced at support at 14400, but the overall pattern is negative. A close below 14000 would confirm the down-trend.
The Nikkei 225 is in a primary down-trend, having respected the 100-day exponential moving average from below. The index bounced at support at 14400, but the overall pattern is negative. A close below 14000 would confirm the down-trend.
ASX Australia
The All Ordinaries is following other markets down, having respected resistance at 4960. Expect a test of primary support at 4800.
The All Ordinaries is following other markets down, having respected resistance at 4960. 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.