Monday, May 5, 2014

The Weekly Outlook and Monday Ramblings

*****Today had pressure to the upside since markets were a bit oversold and relieved that Ukraine did not blow up .. but the markets IMHO do not see what Putin is capable of, hence I am probably more cautious than most. My bias is showing at such times when people think Ukraine has power to decide for itself but without western support (which already showed as weak) they have nothing.  Crimea should not have happened if we were going to help defend their position.

As to the other markets of the world,  I heard today that the air pollution is so bad in China  that it is importing fresh air bags for their citizens to breathe.  Why can't we sell fresh air to China in exchange for our debt? California is now one of the cleanest air states in the USA if not THE cleanest. We are paying a premium for it in our taxes so why not capitalize on our investment?  Something is not right with the world when we still excuse China and blame the USA for climate change when all evidence is to the contrary.

Who's holding things up? Is the economic optimism really so positive amongst the many or is it only amongst the few?  Which "Father" knows best Icahn and Buffett?  We see a lot of news on both but does anyone ever pay attention to what Soros is doing?

In short, I see nothing today that will change my opinion about the outlook yet.

Happy Trading, Living and Dancing

 The Weekly Outlook $DJIA $SPX $NDX

©DayTrading with Anni 2007 - 2013 All Rights Reserved

Thursday, May 1, 2014

The Weekly Outlook - A Bull or Bear Be ~ $NDX

*****Looking at the current daily chart of the $NDX today I still fail to be convinced of a bullish position. First there is a downward open wedge pattern that needs to be reversed. Second there is a hesitation here along the top line of the trend-line and third, it's still out of the channel.

Finally the turning point is not until between 3640 - 3650 area and until then there are a few obstacles to overcome. Looking at today's close, history shows that it has reversed from this area numerous times and that the breakout is more difficult but of course not impossible.

The top current trend-line is important here as is the bottom channel line a continuation to the down along the trend-line could break the center support of the open wedge whereas the breakout up could support at least the testing of the 3635 area and further momentum back into the channel.

Regardless of a Bull or Bear be, don't allow your vision to be opaqued by your thinking. Watching the chart will instead clarify doubts one way or another and perhaps you'll also note the possibility of a right shoulder forming.

Happy Trading, Living and Dancing

The Weekly Outlook - $NDX Update

©DayTrading with Anni 2007 - 2013 All Rights Reserved