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

Tuesday 30 November 2010

Slap on the makeup !

good end of month video from Tim Knight


Deadly candle

Most indices posted bad (bearish) candles on the monthly (November) charts...here is Ftse100

Ftse ID chart

I posted a bearish 4 hr pitchfork chart last week.(Nov 24) We now have a bearish 3rd lower high setup.We could bounce and test the neckline but could just as easily accelerate down through the channel line

Dow Jones

The kagi chart has turned red (in AH trading) confirming a possible false break/double top scenario.The bull view is that we are in a wave 4 before new highs in Q1 and this is possible,but this setup is valid with a relatively close stop-loss

Triple Top Setups

Wolseley is a UK building service supplier


This is a UK listed hotel stock.I know little about it other than it has an interesting chart with good bear potential.Triple top on the weeklly kagi could produce a fast decline.Trended well in the last bear phase in 2008

Cable - honeymoon over ?

EMA's are crossing and we have followthrough to last week's bearish candle and rising wedge breakdown,downtrend looks like it is accelerating

Sunday 28 November 2010


Generally a bullish looking chart although may pullback to lower trendline,offering a good buying oppurtunity.I would guess this breaks out of the triangle some time over the next 12 months


Oversold at Gann line support so could bounce from here

LLoyds Bank

The Lloyds bank chart posted on Sep 10 has really worked out well...lets see if the lower trendline can hold.The rsi divergence suggests a test of 52p

Another monthly topping candle !

Saturday 27 November 2010


Dow Jones 3 x bear etf

We appear to have travelled 64 points (with a bit of overthrow) in 64 days ,which is the square of 8.I know Murrey math uses 64 trading day cycles a lot so it may be worth monitoring the square

S&P 3X bear ETF

This is just a Gann square of the last major range,extended forward .


Spain posted an ugly black candle this week.I noticed we had a 44 point range down,then a 22 point range (half 44) and also that the recent high was 44 ...Gann said pay attention to numbers ! I am not saying the market will decline to 22,but it is definitely on the radar screen !


I posted this chart a week ago and we have seen a bearish monthly engulfing reversal at Gann 50% down from the high,with natural Gann levels (36 and 18) operative


If this is an ovethrow of the 2 lines then a reversal is needed swiftly,below the circled congestion area and would be a strong sell signal with stop above the high

Monthly candles

There is not much time left for markets to turn round the dangerous looking topping candles on various charts (eg look at BKX,XLF)...here is the NYSE

Aussie dollar

This is an important currency as when it rises it tends to indicate risk appetite is growing.


European contagion?

Not a pretty week in Europe,while in the US bond yields are rising and the dollar rallying...not what Ben intended! The Vix had a good move today but I find it amazing how complacent the markets have been (signalled by the low levels the Vix has been trading at)





Thursday 25 November 2010


multiple backtests of descending triangle

Tullow Oil

Kagi chart showing lower highs



Banks - watch out !

A lot of agonising going on about whether we in a wave 4 or a wave B etc...I think that is missing the point and that bears are so traumatised by Fed manipulation some are even turning bullish.The key,I think is to watch Europe,China,mining stocks and....banks..........all of which are flashing warning signals that we may be approaching a big turning point

Wednesday 24 November 2010


Island reversal and breakaway gap ?


Update of a chart posted earlier,still looks like a top forming

Ftse monthly triangle

Big reversal bar....look how it has pushed back below the trendline !

Goldman Sachs

Well I thought the November 1 year cycle was going to be a major low but the Fed had other ideas ! Is it going to be a major high ?  Nothing like as bad as the Deutsche Bank chart though !
(annotation on this chart is wrong,it is a 2 year cycle)


Deutsche Bank

Very ugly !

Tuesday 23 November 2010


Euro Kagi chart

FTSE Kagi chart

Ftse indices

the lower high just formed was a sell signal,coming below the Gann 100% level.It was a 2 year cycle from the low....nice !