Jump to content

Index Trading


Danville

Recommended Posts

Its amazing how hard the XJO has risen today, neally 100 points above the nights lows. BHP certainly contributing highly to the rise, up $1.10 at this point in time. Lets see if this rally will last till the end of the week.
Link to comment
Share on other sites

  • Replies 16.6k
  • Created
  • Last Reply

Top Posters In This Topic

  • early birds

    5918

  • Danville

    1426

  • arty

    945

  • blueice

    1000

Top Posters In This Topic

Posted Images

There are a number of market movers and shakers data coming out this week - we have the financials in the U.S. reporting, and a host of economic data from the U.S. also coming out, in particular the initial jobless claims for July and also the China GDP coming out this week. All enough to keep you on the edge of your seat...................how bad will they be????? Dunno..............
Link to comment
Share on other sites

 

Business conditions jump sharply in June

By a staff reporter

 

Business conditions in Australia jumped sharply in June, driven by stronger performances in the manufacturing, construction, wholesaling and finance industries, while business confidence continued to gather pace building on the surge seen in May.

 

http://www.businessspectator.com.au/bs.nsf...RX?OpenDocument

 

I suppose it does not matter what +ve data we get here in the land of OZ because as always the real solution lies with the U.S.

Never the less it is a welcoming site to read something like this FOR A CHANGE....................

Link to comment
Share on other sites

 

US stock futures signal losses ahead of key earnings

* U.S. stock index futures pointed to a lower open on Wall Street on Monday, as investors fretted about the outlook for company profit despite global conglomerate Philips's (PHG.AS) (PHG.N) upbeat earnings and comments. * At 0849 GMT, futures for the S&P 500 SPc1 were down 0.42 percent, Dow Jones DJc1 futures were down 0.37 percent and Nasdaq 100 NDc1 futures were down 0.32 percent.

 

* Investors were bracing for a flurry of quarterly results this week from U.S. bellwethers such as Goldman (GS.N), Intel Corp. (INTC.O), Johnson & Johnson (JNJ.N), Google (GOOG.O), IBM (IBM.N), JPMorgan Chase (JPM.N), Bank of America (BAC.N), Citigroup (C.N) and General Electric (GE.N).

 

 

http://www.reuters.com/article/usMktRpt/idUSLD34621420090713

Link to comment
Share on other sites

Just had a look at the All Ordinaries, for which I'd found a threat of a Head and Shoulders forming over the past couple of months. That threat seems now to be easing, and I find instead an interesting symmetry:

 

If the falling trendline could be broken today or tomorrow, the risk of a H&S pattern playing out would be greatly reduced.

While the matching Lows on 18/5 and 8/7 don't really qualify as a double bottom (proof left as an exercise for Class ;-)) a break above the falling resistance must still be considered a positive move.

 

All of the above support those "positive vibes" from the index options series expiring on the 16th that I've explained earlier, suggesting XJO should open above 3850, possibly close to (but unlikely above) 3900.

post-20537-1247544128.gif

Link to comment
Share on other sites

All of the above support those "positive vibes" from the index options series expiring on the 16th that I've explained earlier,

suggesting XJO should open above 3850, possibly close to (but unlikely above) 3900.

 

And what after ? if it opens at 3850 and closes 3900 we talking a run to 4000+ ?

 

Cheers

Matt

 

Link to comment
Share on other sites

And what after ?
That looks still a bit vague, Matt

My guesstimates were based on the current Index Option series. One might even say "big deal" given how close we are today.

(But look back when I first made the suggestion... :B): )

 

Depending on the shape of the chart this coming Friday/Monday, I'll have another stab at it. At this point, it looks as if the rest of the month might be rather flat, with BHP for example likely to end the month close to $35; STO between $14.62 and $15.07. If they're any guide, representative for our broader market, the rest of July shouldn't give too many surprises - nasty or otherwise.

But that's all I can guess at this stage: Look at the conflicting trends below. We have the falling resistance - due to be broken, but how strongly and how lastingly??? Then we have the horizontal support across the "matching Lows", and a rising support line from the March Low.

In MACD, the long-term Bearish Divergence line is still clouding the optimism, although the recent Bullish Divergence lends increasing credibility to the upturned tail of its red "speed" line.

 

"Patience Iago" :)

 

post-20537-1247547155.gif

Link to comment
Share on other sites

It's certainly a strong day. Index has not broken ANY of it's intraday swing lows yet.

If thats where you place your stops, then it would be a very profitable day.

Maybe it is a rejection of the H&S - maybe it's a big suck in.

Link to comment
Share on other sites

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now

×
×
  • Create New...