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

Wednesday 29 February 2012

Almost there

and here is a nice symmetry chart posted in the comments se ction by ABQ Trader


Bearish setup if the triple top can be confirmed.3 Gann cycles clustering.50% retrace around 44. Gann natural resistance at 45.Looks good

Tuesday 28 February 2012

here is another look at that time symmetry chart I posted earlier


High-Low/Low-High Time symmetry

break of 3rd fanline,distribution pattern ?

Ftse Gann charts

Above is Gann fans with calendar day spacing.Below is normal trading day chart with geometric square based on 90 cal days,900 point Gann square


We broke the rising wedge.Macd was diverging on 2 timeframes .There was a 90 day cycle in play


Understanding Greece


A priceless rant !

Very funny anti-banker rant,posted by Ohuatrading,contains Anglo-Saxon expletives...


HSBC gap down below 10dma

This is the chart posted yesterday....I wasn't expecting the sell signal to be triggered quite so soon,but that is good because it suggests the 90 day cycle is valid !


Monday 27 February 2012


I don't know if the wave count is correct but the channel looks good,we have a big distribution pattern and the most recent rally from 9 found resistance 66% up at 15. Vedanta is a Ftse100 globally diversified mining company


Interesting time/price symmetry at the high here.



Nice reversal bar on the hourly chartand negative divergence on Macd



FTSE broke the 3 day lows and 3dema crossed below 10dsma .Today is 90 days from low (Gann) and we ran up 900 pts  (well 890 to be accurate) so we have sell signal with stop above todays high .More conservative would be wait till 5 mins before close.

(remember on Dow the relationship was 90 days/1800 pts )

Sunday 26 February 2012


This  is a very bearish picture.We have 3 tops in place and broke back below 50% (red line


Price is above the 200 dma ,which is declining.It is possible this is a 90 day (Gann) countertrend reaction and that we break back below the 200 dma soon.Remember,HSBC is a "good" bank,so if we get negative signals here the rest of the sector will likely fare worse



March cycles

Some astro from Fibocycle from the mysquigglylines blogspot.            http://mysquigglylines.blogspot.com/       He is pointing out the importance of March 11-15 as a cycle cluster.All good Gann students will also be watching the equinox date.
I would note that March 9th is 3 years from the low or 1080 degrees,an important Gann cycle.

"The projected date has a lot to do with the planetary aspects on Wednesday March 14th and the Mercury Stn Rx on the 12th. This time frame is also 360 cd from the Mar 16/11 low and 270 cd from the June 16/11 low. Over the next few weeks you will see that the market geometrics that I post will show several intersections and cycle frontiers coming together in this time frame."

Dow 90 day cycle square with price

I mentioned the 90 day cycle from the Nov 25 low in my Ftse 250 chart but hadnt checked the price relationships for Gann symmetry.The Dow shows a possible Gann square at  1800 points plus 11200. It may be worth looking at other markets for confirmation.All this is saying is that IF we were to reverse in this time/price window there is greater validity from a Gann perspective and more likely for the turn to be significant.Usually you would expect a retracement to be a fraction of 1800 eg 450,600,900 etc,also true for time


Nothing wrong with the chart but volume has declined as price rose.Does this matter ? Will be interesting to check back in a few months.For the time being ride the trend and trail a stop ?


The long term chart looks very bullish (I posted some months ago) and we continue to consolidate at a high level.

Saturday 25 February 2012

What is a trader ?

Depends on your perspective !  (originally posted by Zteppoo on Slope of Hope)


FOGL Quarterly candles.trend change

This is a phenomenally bullish chart.2 narrow range candles signify support then range expansion and a higher high with huge volume

Mispriced derivatives Risk

This could be the cause of a hyperinflationary policy error which I have been alluding to for the past several years.  The policy error is not in the simple setting interest rates, but the Fed's failure to regulate the banking system and manage its risks.   In this the Fed, particularly under Greenspan, was an abysmal failure, and improvement has not been forthcoming.

this is a quote from the post linked here

Dollar index approaching major low

MP posted these 2 charts in my comments section


wave count from Geno.ADX line close to rolling over ?


needs to hold above the bearish 1x1 .Heading into a 6 month cycle from Sep high so bulls be on guard.I am not chasing gold here but shorting looks dangerous above the 1x1.
Second chart is a highly speculative pitchfork.The dollar is key for where gold goes next week I believe.

Gann numerologists - note it would not be a surprise to see gold fail at 1800 and silver at 36  !!

Looking at this weekly chart definitely pushes me toward the bearish camp.With a low around 920 the June contract should have difficulty pushing above 1840.I suspect 1800 may hold.

Ftse250 Wave 2 or B ending ?

We are 90 days (Gann cycle) from the Nov 25 low and just shy of the 78.6% retracement.Watching for a reversal signal early next week

here is the ubiquitous bearish rising wedge pattern,in this case for the FTSE.Trading strategy here is not rocket science  A break of the rising wedge,some red candles on the heikin-ashi chart and a break of the 13 dma should prove a pretty solid sell signal when they occur


Friday 24 February 2012

Paint Job



Thursday 23 February 2012



I am not a Conspiracy theorist but I am more of one than I used to be when I worked fulltime in the financial markets.Truth is increasingly stranger than fiction.

2 charts from Ron Walker

I posted a sell setup on AAPL yesterday.This is the 15 min chart at the close.T/L broke and we had a backtest.C wave down to come ?


I have been umming and erring on the pm's recently.I was short gold got stopped on Monday and went long,then took profits yesterday.The weekly candles got me quite excited but we retraced to 61.8% from the 1928 high and on balance I am cautious here.I think we are about to see dollar up and risk off and that may hurt pm's.

 Here is a short-term silver chart.I can also count that 5 on gold

"A gold standard without the flexibilty"

I love this quote from Hugh Hendry

 As for Greece, the end game will be the Greeks rejecting austerity. The euro is nothing but a gold standard lacking flexibility, and all the onus is on private citizens to take the pain. Eventually, a Greek politician will say, 'Vote for me, and I'll get us out of this system.'


The Aussie dollar is also signalling potential problems .Another nice chart from Kimble. Crude oil prices are another headwind


Wednesday 22 February 2012

Russell and Trannies leading ?

The Dow Jones Transports and Russell seem to be showing weakness and the NYSE has backtested the neckline of a possible Head and Shoulders pattern.The Complete Coverage Report  had some good observations and charts on this.   http://thecompletecoveragereport.blogspot.com/2012/02/tell-all.html

Cable Setup

Last night's setup on cable worked nicely,with good follow-through today and I think there is more to come


Watching BPI

One of my personal favorite market breadth indicators is the bullish percentage index (BPI). It is a calculation that is applied to indexes (a group of stocks) rather than an individual stock. The bullish percentage index (BPI) is calculated by taking the total number of issues in an index that are generating buy signals on point & figure charts and dividing it by the total number of stocks in that particular index. Analyst John Murphy discusses the interpretation of the indicator in his book The Visual Investor: How To Spot Market Trends. Murphy's rules of interpretation for using the bullish percent index are simplistic; when the BPI is above 70%, the market is overbought, and conversely, when the indicator is below 30%, the market is oversold.

The BPI works well when plotted as a line with the five-period moving average (MA) or 10-period MA alongside it. Exponential moving averages (EMAs) can also be used. In this example we will use the S&P 500 as our underlying index beside an EMA.

The BPI of the Standard & Poor's 500 ($BPSPX) is plotted above as a line with the five-day EMA placed with it. The strategy here is simple: Sell the market when the BPI crosses below the moving average, and buy when it crosses above the respective moving average. When the BPI crosses above or below the five-day EMA, it triggers the signal to buy or sell.

(From Ron Walker's public list)

possibly a good entry level to sell Apple ? looks like 5 waves up to finish a B



This is a good silver play,I am told.We charted it when it was around 21 and were bears.Now looks to be triangulating above the long-term trendline.I like this chart a lot.UK listing.