On the 23rd of April 2010 the market closed at its highest point for the rally (pre flash crash) at 1217.28, one point from the projection we made in our Share Market View on April 20th. We are now at the other extreme with the markets over-extended to the down side with further dramatic downward moves limited…
Its now the 19th of April and the market is approaching the targets outlined in February. The market is now over-extended and the probability of further dramatic upward moves are limited. Significant resistance exists at 1216 (Basis $SPX) with the market approaching the Fibonacci 1.618 extension of the counter-trend range A-B.
In the past 4 weeks the markets have been demonstrating an extreme of negative sentiment which we now believe to be coming to an end. The obvious conclusion to an extreme sentiment event is a sharp reversal in price and it is now we believe that this is most probable. The Marker basis $SPX has formed a solid base above the November swing low.
For the past six weeks Global markets have tracked sideways in a major time correction, digesting the gains since march 2009 (basis S&P 500). Price has been capped by the horizontal blue line representing the 50% split between the 2007 high and the 2009 low. This has been important resistance and a psychological barrier [...]
The S&P500 has reached or is approaching a major level of resistance. A triple neck tie is looming, as defined by 1) the downward sloping trend line, 2) the 200 period moving average, and 3) the resistance defined by the swing high in early January. These three resistance lines come together to form a [...]
In spite of many bad news stories that would have normally sent the markets into a tail spin last Wednesday, the US markets displayed resilience and moved up with a four day rally. US residential real estate prices continue to fall, US consumer spending continues to contract, and the inflationary impact of rising oil prices [...]
On the 11th of December the US cut their federal funds rate once again, which marked the third rate cut in the past three months. Fed officials stated that “further cuts were possible if the severe housing downturn and mortgage lending crisis gets worse”. The rate cut disappointed the market, leading to a failed rally [...]
Over the past two weeks, US markets once again displayed a major increase in price volatility due to large write-downs at Citigroup, Wachovia, Washington Mutual, and Merrill Lynch and lay-offs in the mortgage and investment banking businesses of Bank of America. For the short term at least, sub prime jitters re-entered the market.
To balance this [...]
In my last article I described this market as dangerous to all traders due to its large price volatility. My view has not changed as of Thursday night and this is still not a position traders market.
Although my view has not changed, we are observing an easing of sentiment/fear basis $VIX and the market is [...]
Once again in response to emails, I am publishing an update to explain our current outlook of the markets.
The re-occurring question has been: Why the lack of trading activity in WiseReport Auto-Trade?
WiseReport Auto-Trades are position trades. Position trades work in time frames of 42-52 plus days. The current correction with its 100 point plus up [...]
