Dow Jones and the Hang Seng Index have both rallied up to key resistance at the 61% Fibonacci level, in the chart below. Notice what is happening to the Hang Seng index at (1)!
CLICK ON CHART TO ENLARGE
Hang Seng index is breaking down at (1). Watch this global leader as an indicator of what the Dow could be about to do!!!
The U.S Dollar was down big today, over 1%! One item of note, the “Hot Emerging” market ETF’s (Hot to Cold ETF) and Basic materials did very little on the upside today. Very unusual with a big Dollar decline.
How about refocusing on the chart instead of fretting about what may or may not happen if something may or may not happen depending on how the market interprets the other thing?
Is there a way to short the Hang Seng? What does the Hong Kong exchange represent anyway? Is this an overall Asian market play?
Well said. Thx.
Lukasz,
Sir John Templeton used to share over and over and over again this line…”Don’t worry about what you KNOW ALREADY, it is built into the markets. Worry about what you DO NOT KNOW!”
I suggested to go long the 500 index first day of September, soley based upon the “Power of the Pattern”… due to the Euro/yen and the 500 index being on support. This was BEFORE QE2 was ever discussed.
I am not a fan of trading on the news/rumors….too many people want to spread and publish BS, so it can help THEM make money. They have a financial reason to pass on a story.
QE2..I will tell you 6 months from now if it was “real and impacted” the markets. Right now, as always, I like certain price patterns the world is putting together.
Chris,
Recognizing patterns the right way enables to be an early bird! I admit. But don’t you think QE2 rumors may interupt current view.
ME…
I like early birds!
I have position bias I admit…”GO SMN!” (inverse base metals)
Unclear view before end of next week. Who wants to be early bird to gain the most?
Pretty much all the posts point to various resistences, but the overall message in unclear. No entry points possible into anything, because the market is at a juncture ? Tomorrow has potential for big swing with gdp release. The wait is almost over, with only 3 trading days before FOMC. What new positions have you taken kimble, in past week ? I noticed you pretty much closed all previous positions last week.
Excellent call,