Long term outlook: UpMedium Term Outlook: DownShort Term Outlook: Sideways to DownRevision Point: Break above 1260Potential Medium Term Targets: 680 and lowerPreferred Strategy: Take short term positions only, till we see an end of the corrective phase..The market saw a decline during the last week. We may have seen the completion of wave II.3 at the March 3, ’10 high (1045.10) – as shown in the main image. This would imply that we are now in the third wave decline. If this is correct, then we are likely to see the swiftest and the longest sell off awaiting us in the upcoming days, without getting a break above the March 3, ’10 high at 1045.10. This sell off, if it is a third wave sell off, is likely to be longer in magnitude than the sell off witnessed from December 3, ’09 high (1226.30) to the December 22, 09 low (1074.90).
Alternatively, the March 3. ’10 high may not be a completed wave II.3, but rather a wave b of a possible second wave Expanded Flat correction underway, after the completion of a possible wave i.C.2 at the February 22, ’10 high (1130.85). If this scenario is to hold valid, we are likely to see a wave iii.C.2 rally in the upcoming days, taking the price above the February 22, ’10. However, before this rally, we are likely to see fall below the February 25, ’10 low at the 1087.72 mark, possibly to between the 1080 to 1070 mark, completing wave c.ii.C.2.Copyright © 2010, the Trading Solutions, All Rights Reserved.
Comments
Thank you once again for taking out the time to read my twopence.
Best Retards and God bless you.
I wasn't criticising you at all incase you think that I was,the work you posted was splendid.
In 2005 gold and the dollar rallied at the same time and everytime the dollar would dip slightly,it'd cause it to rally more,I just think deflationists are getting the picture wrong this time round,I think the crash of 2007 was our deflation scenario in a longterm inflationary bull market.
The great thing about this blog is that we have the opportunity to bounce ideas of one another.I'm very gratefull for the report and charts you posted.
my regards and god bless.
Nevertheless, my friend, if one is to trade the Finanical Markets, my strong word of advice would be strike out the phrase 'i don't see this happening' from one's usage. Anything is possible in the financial markets and mostly the least expected does happen. My method is to develop a general perspective without becoming a prisoner of that perspective (the best way of doing that is generally to develop an alternative perspective at the same time); keep reviewing the perspective and trade the moves within that perspective, only at the emergence of Low Risk, High Probability Trade signals, which you have sufficiently back tested.
I hope I make some sense this time... :)
Cheers and best regards,