It is well enough that people of the nation do not understand our banking and monetary system, for if they did, I believe there would be a revolution before tomorrow morning. Henry Ford

Those who surrender freedom for security will not have, nor do they deserve, either one. Benjamin Franklin

The idea that you know what is true is dangerous, for it keeps you imprisoned in the mind. It is when you do not know, that you are free to investigate. ~ Nisargadatta Maharaj

Saturday, 16 January 2010


Friday was a weak day in markets.The Dax made an engulfing candlestick on the weekly chart ie moved higher than the previous week's high but traded (and closed) lower than the previous week's low.It actually engulfed the previous 2 weeks ranges.This suggests a rapid change in investor sentiment.For those interested in such things Friday was a solar eclipse. We reached 6094 on Monday,2 days before the 6 month cycle from the July 13 low and 18 points short of the 6112 level where wave 2 would have equalled wave 1. 6000 was a big level for a variety of reasons,not least Gann natural resistance numbers and ranges -3600(low 3589)+2400,4500(low 4524)+1500,7200 (high 7231)-1200 etc .However the uptrend line has not broken yet and should be watched closely.There is also support at 5800-5900 to be overcome .The big picture looks quite dangerous to me,with a possible pullback to the neckline of a big top pattern.Crosses of the 10 and 20 week moving averages have given good signals in the past so could be used as a "mechanical" signal for trend-followers.
Other indices showed signs of hestitation such as the daily evening star pattern on Monday on the Ftse and the weekly doji on the Dow but without weekly engulfing patterns.

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