KrunchieKilleen

KrunchieKilleen

After this week's euphoria, the Dow will surley take a dip. This may become the Big Dip, but a punt on a local dip is in order. A Stop Loss in place in case we are wrong, and a Trailing Stop to anticipate the share pulling out of the dip sooner rather than later.

KrunchieKilleen

The pale blue triangle with which I previously depicted what I thought would be the top of the Parabola has been overpainted by the amber band which depicts the range of the present coninuing super up-trend. The green band depicts the "normal" range of the Dow Industrials, based on long-term trend lines. The present trend has grossly overshot this range and is in...

KrunchieKilleen

Chart logic would suggest that the Euro would now bounce off the Support Line to have a rebound against the US Dollar. As the Resistance Line and Support Line are converging, eventually there must be a break-out either upwards or downwards. Good economic performance in America indicates an Imminent interest rate rise in the Dollar zone, while Europe continues its...

KrunchieKilleen

I was wrong. Instead of plunging, the markets have surged. Nevertheless: 1: The strong upward slope that brought us here, as I illustrated in a previous post, were caused by the policies of QE (Quantitive Easing) and ZIRP (Zero Interest Rate Policy). When the American economic growth is self-sustaining, these policies have to end, bringing a significant market...

KrunchieKilleen

As the markets resume their downward plunge, we note that the parabola top is nicely defined by 3 peaks.

KrunchieKilleen

The triangle depicts symmetry between the slopes of the up-trend and down-trend. The down-trend has not aborted so long as the graph stays within the triangle

KrunchieKilleen

Word that Quantitive Easing may be extended in order to quieten the Markets may have been the cause of today's great rebound. However, the trend is still downwards. Perhaps the slope of the downtrend will moderate. On the other hand, once the Bulls see that the QE rumour is not bringing a full recovery, the down-plunge could become as sharp as before. The fall of...

KrunchieKilleen

Two weak signs of the new Down-trend aborting: a break-out of the Resistance Line and Levelling of Bottoms. I guess today's upswing was a reaction to yesterday's vertical down-slump, that it will peter out and that the down-trend will continue.

KrunchieKilleen

Yesterday's 3% or so drop in many indexes across the world made News Reports wake up to the fact that the markets are falling. The Reports blame the slump on the Ebola virus and unsatisfacory reports on global economic growth. Alas, they are misinformed. These items in the news may have been an extra sitmulus to a correction that is already under way. However, if...

KrunchieKilleen

Yesterday's recovery of the markets was short-lived. Overnight, the down-turn resumed. The effect of yesterday's bounce-back was only to widen the range of the down-trend slightly

KrunchieKilleen

There are many conflicting indications as to what will happen next. Recalling how we got here may have some benefit. The economic collapse of 2007/ 2008 brought markets around the world to their knees. The vertical pink line marks the point in time that Quantitive Easing and Zero Interest Rate Policy were introduced. These policies intended to put cash back into...

KrunchieKilleen

The Euro has begun an uptrend against the US Dollar. However, given the fact that the US and Sterling are due increases in bank interest rates sooner than the Euro, we can't be sure how long this uptrend will continue.

KrunchieKilleen

I thought that the Bulls would be panicked by Friday's late plunge. Instead, they fought bravely back, pushing prices up for a time before they fell back to Friday's closing level. The graph of the S&P 500 kept within the bounds of trend line D that I drew on this morning's chart, and the downward slide continues as strongly as ever. There will undoubtedly be a...

KrunchieKilleen

This mornign early (6.30 Greenwich Mean Time), the HANG SENG took a sudden dip, but quick recovered to finish a little up. Later the DAX and the FTSE had a slight recovery. Outside of trading hours, the S&P at first had a good recovery (but ot now, at 3 hours before opening) is beginning to weaken. If the American indices are to follow the Euorpean and Asian,...

KrunchieKilleen

Given the dramatic drop in share prices as closing bell approached today, 10 October, I guess we can now announce the date of the next Black Monday: it's 13 October 2014.

KrunchieKilleen

Given the dramatic drop in share prices as closing bell approached today, 10 October, I guess we can now announce the date of the next Black Monday: it's 13 October 2014. (Apologies: heading refers to S&p; Chart refers to NASDAQ100).

KrunchieKilleen

Nasdaq 100 has a tendency to take wonderful flights into outer space, but ultimately to be brought back to earth. I venture that the orange-tinted polygon represents its natural range. The blue triangle depicts the amazing surge in the late 90s and its collapse right back to ground zero between 2000 and 2003. The green polygon represents the top portion of its...

KrunchieKilleen

The green polygon indicates the proper range of the SPX500 Downtrend. The highlighted peaks fall outside the range and are aberrations. Because markets antifipate lowering interest rates, a breakout at the lower bound is more likely than one at the upper bound.