euro

A Mellow Market Mood – The EURO

By: George Harrison for money-tigers.com

As the Forex markets are starting up again, I’d like to share my opinion on the EURO.

Forget what you’ve heard, (of course), and go by what you ‘see’ beneath the surface.

As I put on my ‘Excalibur’ glasses (which are better than the ’3-D’ rage today and the technique I use for analysis on this site), I see last week’s big break to the downside and, an underlying short ROI of about 8 pips/hour still active.

That could change very soon, but, has not as of this writing and posting.

[The chart is below and visible to members of the money tigers group. Click the Golden Ticket on the right to become a FREE member and read the rest of this EURO commentary.]

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That’s all for now. Have an exciting and successful week ahead. – George

A reminder: These posts are for educational purposes only concerning my own private methods of analysis and are not recommendations or advice to buy or sell or to really do anything except to observe, along with me the rhythm of market price movements and try to align ourselves with them. Read ALL risk disclosure & disclaimer links on this website.

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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The EURO: When 2 + 2 No Longer Equals ’4′

It isn't personal, it's only TREND.

It isn't personal, it's only TREND.

The Euro short trade we proposed vanished without a trace into the mists.

We were basically left with a break-even trade sequence.

We originally had an expectation of more selling of the EURO ahead, but, that rosy expectation very soon became the victim of a change in trend and, if I’ve learned one thing it’s this:

Trend is the Master of the Markets.

My read on this is simple.

The Market was right.

Sure, the trend was indicating downward and trend was correct (at the time the call was posted).

Internally, however, I think I was expecting something ‘more’ in the line of a drop in price than was in the cards.

There was no real reason to expect this based on my earlier information or the Excalibur method I use to evaluate the markets with.

In retrospect, the downward trend line in my previous blog was a shallow one which indicated shallow short-term selling of the EURO, not massive selling.

There’s something more in this feedback trend information though if we look closer. And, I admit it’s beginning to bother me a little.

I’m becoming aware that I’m suddenly hearing ‘news’ out there in media-land that’s a little too one-sided and ‘certain’ as to the future direction of the EURO to possibly be right.

I don’t mind being early on a call, but, I definitely don’t like a lot of company in the same play in the same direction.

That just isn’t how it works in the real-world.

The mass of investment psychology is wrong at critical moments.

So, what’s the news then?

There now appears to be information that there’s a huge tidal wave of short-selling of the EURO hanging over the market.

The result of all this ‘certain’ information about the market’s future direction?

Why, the EURO rises, of course!

I never tire of seeing this public relations market manipulation at work.  It’s good, really, really good at influencing the public investor’s mind – in the wrong direction.

I mean, look at it. There’s such a good fundamental reason for the EURO to be weak right now.

It’s as simple as 2 + 2 = 4 .

Or, is it?

The flaw in this equation is that markets don’t comply with Fundamental information. The public isn’t given any that’s truly valuable.

The best information is kept hidden by market interests closest to the market. It isn’t shared with the public except to get the public into the opposite side of their trade.

The public is someone to ‘sell to’ and ‘take profits from’ from the insider’s perspective.

The way that’s done is by feeding false information that appears logical and true to the media (which acts largely as an advertising arm for corporate interests) which can then stir interest by the public in taking on the opposite position to the one the big money tigers of the markets are actually holding.

BEWARE! George Soros is laughing at the Public again.

BEWARE! George Soros is laughing at the Public again.

We saw this most recently with George Soros publicly declaring at the Davos conference in an ‘interview’ how Gold was the ultimate  ‘bubble’ thereby implying that it was ready to burst.

It now turns out from separate sources that Soros was simultaneously BUYING Gold massively for himself.

This brings up two important points:

First: Multi-billionaires are not compelled to give interviews except by self-interest.

They already have all the attention, wine, women and song they can handle at any time night or day. The only thing they continue to crave and cannot satisfy is . . .

MORE WEALTH.

Look at the George Soros picture above and ask yourself:

“What makes a multi-Billionaire smile?”.

The appropriate answer should give you pause and cause to check your pockets and investment portfolios for ‘holes’ in them.

Secondly: Multi-billionaires need a huge ‘customer’ base to buy what they’re selling.

That ‘customer’ base is YOU!

What are they selling, you ask?

What are they talking about in the most glowing terms? That’s what they want YOU to buy.

If they are spreading fear about something about to happen (like Soros talking about Gold as the ‘ultimate’ bubble), then, that’s what they’re buying and they want you to sell it to them at panic fire-sale prices.

When are they selling?

Whenever their lips are moving.

Here’s the rule of good salesmanship:

ABCAlways Be Selling.

It’s a mantra with salesmen and these guys are just high scale versions of that breed.

Bottom line is that, with a technical approach to trading, we’re able to develop our own signals on whether a market is oversold or overbought.

We don’t count on others words or interviews to coach us into action and therefore, we don’t have to be wary of their real, underlying motivations.

We can just bypass that vulnerable stage of analysis completely.

With the EURO, I’ve noted that the Daily price moves have become much tighter and look like they’re about to reverse.

It hasn’t happened yet, but, we’ll be watching to see if there’s something afoot here and catch the switch early.

Have a relaxed weekend. – George



Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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Another Example of Waiting on Trend

The last trade which we were posting about was the Euro which we’d chosen as an example of how longer-term trend can help us to wait and then position ourselves for good moves in a market.

There’s nothing special about the Euro in this regard.

I just had to pick some market and that was the one that was best positioned to make my point about picking one direction and being patient.

Ignoring the bait, we just choose to wait . . .

Ignoring the bait, we just choose to wait . . .

Our last posting was right on target as to timing.

The reversal to the upside occurred shortly after the posting of our chart as was expected.

The first blue circle on the left represents where we would have closed out our short position from about 1.3640, so, this would have been a profitable trade.

Once the trend reversal signal was given, one could have taken a long position on the short-term. But, that wasn’t the point I’ve been trying to make in these last examples, so, that signal was ignored for good reason.

The reason was simple: I was not looking for a long position in a weak currency.

Since the daily trend is solidly down, it would be illogical and probably unwise for me to take long signals intraday.

It would just be a matter of time (and probably not much time at that) before the Euro would reassert it’s downward movement.

Well, that’s exactly what happened. Faster than expected, but, expected.

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But, the Euro is only one market of many with great opportunities out there.

The S&P 500, another market of interest

The S&P 500, another market of interest

The S&P 500:

The stock market as represented by the S&P 500 has begun to weaken in the last few days.

As this is a short-term trend phenomena, we won’t ascribe too much meaning here.

Yet.

If prices at the end of today are lower than yesterday’s lows, and, if prices close lower than yesterday’s lows, I will take notice of this market more seriously and would expect several day’s of lower swings ahead.

That’s it for now. Have a great day. – George

A reminder: These posts are for educational purposes only concerning my own private methods of analysis and are not recommendations or advice to buy or sell or to really do anything except to observe, along with me the rhythm of market price movements and try to align ourselves with them.

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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Euro Fake Out Trade Update

Happy Monday to all.

This is an update of the Euro short trade proposed in our last blog of last evening.

It seems like a good time to update as it appears that this particular trade selection is about to end.

Or, it may not.

That’s really the point of researching and finding the true underlying trend in a market and staying with that trend until the market itself gives signs that it has changed it’s momentum and direction.

Yesterday’s chart when we entered our selection for our hypothetical Euro trade on the short side looked like this:

This is yesterday's market pick
This is yesterday’s market pick


The trend soon broke downward as expected from our signal.

We followed with a very shallow trendline indicator which was generated through our Excalibur process.

The shallowness of the line indicated that there was not a lot of selling pressure as yet so, we hold back from moving our stops lower too swiftly in order to give the market some room to swing back and forth in price. 


Below is a more recent chart of the Euro.

15minEuro2-22-10
Click on charts to enlarge image

 While our downtrend is still in operation, the momentum of the market has slowed and looks like it will shift again upward very soon.

Until it actually does though, we stay with our indicator and track it accordingly.

The results of this trade will also be positive profit-wise as our red arrowed line is also our stop to the trade and we’re way ahead of our entry price point (seen in the above chart as the blue circle).

Our results will be posted once the trade is over for members to view on this blog. – George
Ge

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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Euro Fake Out Trade

Hope you all had a great weekend.

And, now we’re back to the Euro to continue our study of intraday markets and the Euro in particular this evening.

After opening and going upward in price, I stepped back like I described last week to wait for opportunities to arise to go short this market.

You’d think by the way prices went upward after the rate hike on Friday that the European financial crisis was over.

That’s not the way I’m prepared to bet however.

I think this is a Euro fake-out trade designed to trap traders on the wrong side of an upcoming move.

Only an opinion, but, backed up a little by trend change detected at the 15-minute and 30-minute level.

I see and (more importantly) Excalibur (the trading approach we use to evaluate markets) sees another moment of potential weakness just starting.

Here's the 30 minute view as of the posting

Here's the 30 minute view as of the posting

The rest of this trade set-up description is just below but for Members only to view as this is not a public advisory service. You can become a member at no cost right now and read the rest of this post without delay.

[If you wonder what members are seeing that you aren't, just click on the 'Golden Ticket' over on the  right margin and Join right now.

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Member Only access begins here:

What follows is for MONEY TIGER GROUP MEMBERS EYES ONLY: [Content protected for members only]One of the problems with writing this blog and posting it after working on the charts manually is that I’m a bit behind on the actual trading movement, but, I think it’s important to give you some working examples of how this market could be approached using our method of analysis.

It’s a built-in delay so, by the time this is posted, things may have progressed or been stopped out.

The risk is worth the potential in my opinion on this one, so, let’s see how it progresses throughout the next hours.]

I’ll post again later. – George

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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Updating Euro Pick

Just a quick update on the Euro pick posted earlier this morning.

Here's the update as of 11:00 P.S.T.

Here's the update as of 11:00 P.S.T.

We’re still in our hypothetical short position and are closing up the stop to follow very closely to the market.

Further comments will come later in the day.

Check back then.

Update of completed trade will be available to members only.

You can join now for FREE by clicking on the ‘Golden Ticket’ on the right margin of this page.

There’s no obligation to join and no begging for subscription fees or that sort of thing.

Good afternoon to all. - George

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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Euro Reset

Results are nix on the last Euro entry as the market has reset to a higher time frame.

But, that doesn’t mean that there isn’t something to be learned from the exercise.

While price did go lower as expected and then retraced as expected also, it just didn’t go down far enough or hold long enough to get on the plus side of the trade before an indication was given that intraday trend had strongly reversed.

When this happens, my personal approach is to step back and examine things looking at larger time scales.

But, there are other actions that could have been taken that were also correct.

I write more about this in the members only section below as food for thought. Join right now so you can read it.

Meanwhile, here’s the view of the scenery using 60-minute bars of the Euro instead of the 15-minute bars shown in our earlier blog:

2-16-10High15min

Join as a Member to view more about this trade

I have another another chart you can view in the Members Only section that continues below and an in-depth examination about a largely ignored part of the trading formula:

Trading Philosophy vs. Trading Method

By the way, the results for that last Euro intraday short pick can be viewed by Members only below:

[If you wonder what members are seeing that you aren't, just click on the 'Golden Ticket' over on the  right margin and Join right now.

There's no obligation and it's completely FREE.

That's right, FREE.]

Member Only access begins here:

What follows is for MONEY TIGER GROUP MEMBERS EYES ONLY: [Content protected for members only]

Thanks for reading. All the very Best Success. - George

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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The Euro ‘Spring Effect’?

Like a coiled spring facing downward in price, the Euro has been retracted and is ready to spring to new depths again.

In our continuing experimental intraday charting choices, we continue to track Euro opportunities from the short-side perspective.

As we mentioned in our last blogs, the daily trend for the Euro is still strongly down, so, that is where positions should be set up with the highest possibility for success.

It worked last week over our 3-day experimental and hypothetical run and was good for 340 pips of profit possibility.

Let’s see how things unfold now that a new upswing has upset most traders.

It happens to be just what we’re looking for; a break in the intraday uptrend with strong possibilities for the downside.

Let's see how this unfolds over the next hours.

Let's see how this unfolds over the next hours.

I not seeking infallibility, just opportunity with minimal risk in the process.

Our approach usually finds the opportunity and lowers the  risk by targeting special entry prices.

It’s up to the trader to supply sound money management and risk control (although that’s also integrated into the Excalibur program we use here).

Well, that’s enough for now.

Let’s just see how this turns out. Our hypothetical stops are just above the descending red arrow on the right of the chart.

which means our risks diminish with each passing hour should trend continue to favor our play.

I frankly expect some sort of back-up in price from here before another swing to the downside should it come. We may see it descend down to 1.3620 if a real speedy drop occurs on this swing.

Let’s track it and see. - George

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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2010 – Euro Trend Down?

Hello 2010 and hello to our friends in the Money Tigers Group.

Glad to greet all of our readers again on this new side of the yearly calendar.

We start this year with a trend that promises to last for several months minimum.

I’m talking about the EUR/USD forex pair.

The Euro is definitely on our trend line radar and the direction is down.

EurowklyThe Euro is acting weaker than other currencies at present and may be the leader of the pack going out of the gate early.

This is particularly important if you are implementing a cash equivalent strategy.

In short, that strategy encourages cash ownership of commodities or having the ability to completely fund the total valuation of a futures contract.

In the case of currencies, this approach would consist of parking cash itself in a strong currency account so that one can take advantage of interest paid in a strong, rising currency and benefit from increased valuation of the cash deposit as well.

A weakening Euro means that Euros should be converted into a stronger currency.

At present, those currencies with the strongest performance for growth of value are the US DOLLAR and possibly the AUSTRALIAN DOLLAR.

THE BRITISH POUND Vs. JAPANESE YEN:

GBP-YEN2The British Pound has lost a little of it’s downward momentum, but is still solidly locked into a down trend.

It would take some mighty upward action capable of breaching the red arrow trend line on the chart on the left before this strong decline could end and reverse directions.

A weakening Euro will certainly not help the British Pound. Quite the opposite would be the guess in fact.

We’ll comment on some alternative hard assets besides Gold in the next posting.

All the best, – George

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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Shanghai Composite Index Slipping to the Edge?

Holiday ‘Hello’s’ to all you money tiger trackers out there.

I hope you’re getting ready to settle in for a long winter’s nap (Holiday-wise anyways).

Best wishes for this Holiday and for a prosperous and less confusing New Year.

Here’s a little update on the blog sent out yesterday.


SHANGHAI COMPOSITE STOCK INDEX:

In yesterday’s observations, I mentioned that the Hang Seng Index was tipping over the edge, but, that the Shanghai Composite Stock Index wasn’t at that point – YET.

Well, what a difference a day makes. It seems that overnight, as we suspected, the two markets came closer to alignment and agreement on a future direction for trend:

DOWN. Here’s the chart.

The Shanghai Composite is teetering on the edge of the cliff.

The Shanghai Composite is teetering on the edge of the cliff. Click chart to enlarge for clarity.

The downward movement of this market into alignment with the Hang Seng ups the odds heavily that there will be a break to the downside that is fast and noticeable.

Now that the world has turned to the Chinese markets and China in general to see if it is pointing the way to prosperity, the time is ripe for a disappointment to new investors.

What will appear as losses to us will be profit-taking by the true money-tigers of the East.

Money is leaving Gold, the Euro, Australian Dollar and other currencies and is going into the US Dollar for some reason we’re as yet unaware of.

Money needs to go somewhere to work and commodities (excepting the precious metals) and the US Dollar seem to be some of the prime destination spots for this flexible, global traveling cash.

GOLD: The Gold market hit our bottom resistance price area of $1080 which we set a week or so ago.

30daygold

click chart to enlarge for clarity

So, I would set the next step down in price before a rebound (and for a high probability bottom for this cycle) at between $1036.40-$1046.50 ( assuming Cash Gold’s high as $1226 NY Spot).

I favor the lower end of the range as likely.

We’ll just wait and see how the gold trend develops.

As the chart to the left shows, price trend continues in a decline phase on the 30-day Gold price charts.

This blog will have a few days off as we draw closer to the Holidays, but, I’ll be posting some thoughts before the New Year on other markets and trends. - George

P.S.:

A reminder: These posts are for educational purposes only concerning my own private methods of analysis and are not recommendations or advice to buy or sell  or to really do anything except to observe, along with me the rhythm of the big money tiger traders and institutions working at what they do best – swinging and manipulating market prices.

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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Hang Seng Index Cracking?

Here’s another interesting twist in the financial order.

We’re constantly exposed to negative headlines and stories about the US, UK and Western economies. About weakness, recession and woe. And, indeed there’s plenty of bad news to go around without a doubt.

But, I’m drawn to what I don’t read about but actually ‘see’ taking place in the markets of the world.

Markets, whether bond, stock or commodities market, are where money is put to work.

For a while it was Real Estate that was over- heated to a red-hot lava bubble which naturally burst.

Now, many tell us that Asia is our savior and that that is where the future of investing will be.

That is probably true over the long-term, but, in the short-term investment money can be quickly gobbled up by naive new investors in the Asian markets.

Just as I noted that non-US currencies were starting to weaken (British Pound, Australian Dollar, Euro, etc.), now, I’m starting to ‘see’ the beginnings of another surprise coming from the Hang Seng Market Index for Chinese stocks.

HangSeng12-21-09

Click on the chart to enlarge for clarity

Observe the beginning of what could soon be big news this week or even overnight.

My interpretation is price that momentum is, for whatever fundamental reason, being choked and weakness, at least shorter term, is taking it’s place in the Hang Seng Market.

Granted the New Year celebrations are still to come in China, but, this is a bit early and seems to indicate that the incoming funds were coming from the Western side of the world and have slowed because of the Holidays here.

Will that be enough slowing to tip things over the edge? There has been some talk of US currency shortages in foreign countries and there no being enough spare dollars to continue buying US Treasuries at the same rate as before.

This slowdown in momentum may first show as a slip into sideways price action.

A sharp down-turn in Asia will likely spread throughout the region and if it starts now, may go largely unnoticed by traders in the West during this Holiday period. Too much partying can divert attentions.

Just when distractions are plentiful is a good time to prepare for surprises though.

Now, having said that, I need to point out that oddly, I presently don’t see this same weakness in the Shanghai Composite.

Yet.

Whether these two markets can diverge is an open question, but, it doesn’t seem likely on the surface.

We’ll just watch and see how this develops.

I could err on this by being too early but, it would align with the other currency surprises we mentioned and give us something to talk about as we begin the New Year.

Thanks for reading. - George

Legal Disclaimer: The content on this site and articles are provided as general information only and should not be taken as investment advice. All information on this site is given for educational purposes only.

The content on this site is provided without any warranty, express or implied. All opinions expressed on this site are those of the author and may contain errors or omissions.

NO MATERIAL HERE CONSTITUTES “INVESTMENT ADVICE” NOR IS IT A RECOMMENDATION TO BUY OR SELL ANY FINANCIAL INSTRUMENT, INCLUDING BUT NOT LIMITED TO STOCKS, OPTIONS, FOREX, BONDS OR FUTURES.

The Money Tigers Group © 2011

Tags: WD Gann, stock market prediction, gold traders
The Excalibur Method, gold price predictions, timing the markets, money tigers, trading education, gold price charts, e mini trading, technical analysis

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A reminder: These posts are for educational purposes only concerning my own private methods of analysis and are not recommendations or advice to buy or sell or to really do anything except to observe, along with me the rhythm of market price movements and try to align ourselves with them.