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Key reversal levels for week of August 18, 2014

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Weekly key reversal levels for stocks, gold and currencies. Including my weekly comments on the state of the markets. Trend following method keeps you on the right side of the market and avoids big losses on investments.

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Key reversal levels for week of August 18, 2014

  1. 1. Key reversal levels for week of August 18, 2014  Nikkei is back into the bullish camp. But MoM remains down, so it is a weak buy signal.  Bonds (TLT) are still the only fully bullish market, now up 10.33% since they went into bullish mode 29 weeks ago. Not a bad move for bonds.  Gold is not acting right. Fails to hold on to any kind of gains since turning bullish 8 weeks ago. Avoid until more clarity emerges.  Euro going nowhere. MoM keeps pointing down, so a further drop is still the most likely scenario. A weekly close above 1.3626 would change the outlook. Weekly keys: © LunaticTrader.com
  2. 2.  S&P 500 and Nasdaq have gone into rally mode. Other stock indexes have upward MoM but remain below their daily key level.  Bonds have broken above their Top1 target at 115.70. We now watch for 119.50, the Top2 target.  MoM is turning down for gold. A daily close below $1297.05 would put it into decline mode. The very weak 6 day “rally” in gold suggests that path of least resistance is down.  Euro remains stuck at the 1.34 level. A daily close above 1.3471 would put it into rally mode. Daily keys: © LunaticTrader.com
  3. 3.  Bitcoin is now in weekly bearish mode.  Weekly MoM has turned up for Mexico.  Markets/sectors that are in bullish mode with upward MoM: China, Hong Kong, Indonesia, Mexico, Social Media sector, South Korea and Vietnam.  Fully bearish (avoid): Bitcoin, France, Italy, Malaysia, Russell 2000, Russia, Spain, Switzerland Weekly keys for World markets and sectors: © LunaticTrader.com
  4. 4.  Weekly sell signal for CAT and TRV  19 stocks bullish, up from 17 last week. Below 20 = struggling bull market. See: Keeping an eye on the Dow stocks  MoM turning down for IBM  MoM turning up for DIS and MSFT  We see an improvement vs last week. Still cautious as long as number of bullish stocks stays below 20 Weekly keys for the 30 Dow stocks: © LunaticTrader.com
  5. 5.  These key target zones are a by- product of my key level calculations.  I have noticed that when a key target is reached the market will typically react and turn back from it. On the second or third attempt the target gets finally broken and then the next target comes into play.  So these key target zones can be used as price objectives for taking profits or for entering the market after a significant sell-off. They can be seen as a kind of pivot points.  When MoM indicator reverses right near a key target it is very likely that the market has reached a temporary peak (or bottom).  This table lists the two main Top and Bottom targets. Key target zones: Legend * = new or updated target Note: we use a +/-1% zone around these targets. For more details about these key targets, see: http://lunatictrader.wordpress.com/2013/08/20/key-target-levels/ © LunaticTrader.com
  6. 6. More details about the key reversal levels and how to use them in your trading can be found here: http://lunatictrader.wordpress.com/key-reversal-levels/  Blog: http://LunaticTrader.Wordpress.com  On Twitter: http://twitter.com/lunatictrader1  On Scutify: http://www.scutify.com/profiles/scutifier.aspx?q=LunaticTrader  On Stocktwits: http://stocktwits.com/LunaticTrader For daily key levels, regular market commentary or questions you are welcome to follow or contact us here: © LunaticTrader.com Disclaimer Investing in stocks, forex or commodities is risky. No guarantee can be given that the opinions or predictions given in this presentation will be correct. LunaticTrader cannot in any way be responsible for eventual losses you may incur if you trade based on the given information. Simulated trading programs in general are subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Trade at your own risk and responsibility.
  7. 7. More details about the key reversal levels and how to use them in your trading can be found here: http://lunatictrader.wordpress.com/key-reversal-levels/  Blog: http://LunaticTrader.Wordpress.com  On Twitter: http://twitter.com/lunatictrader1  On Scutify: http://www.scutify.com/profiles/scutifier.aspx?q=LunaticTrader  On Stocktwits: http://stocktwits.com/LunaticTrader For daily key levels, regular market commentary or questions you are welcome to follow or contact us here: © LunaticTrader.com Disclaimer Investing in stocks, forex or commodities is risky. No guarantee can be given that the opinions or predictions given in this presentation will be correct. LunaticTrader cannot in any way be responsible for eventual losses you may incur if you trade based on the given information. Simulated trading programs in general are subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profits or losses similar to those shown. Trade at your own risk and responsibility.

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