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Outlook for week of January 12, 2015

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Outlook and weekly comments for world stock markets. Weekly reversal levels for stocks, gold and currencies. This method keeps you on the right side of the market most of the time, letting the winners run while avoiding big losses on investments.

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Outlook for week of January 12, 2015

  1. 1. Outlook for week of January 12, 2015  US and Japanese stock indexes remain weak bullish. FTSE100 stays in bearish mode and DAX weak bullish.  Bonds continue bull run, now up almost 23% in 50 weeks.  Gold is trying to rally. It needs a weekly close above $1237.50 to get into bullish mode.  $EURUSD continues to weaken, with MoM now at very depressed -8.  Oil remains fully bearish. MoM has reached -10, which is extremely rare on a weekly chart. It happens about once in 50 years on any given market. We patiently wait for MoM to turn up. Weekly Reversal Levels © LunaticTrader.com
  2. 2.  Daily MoM turning up for Nasdaq is a first tentative indication that the recent pullback may be over. MoM remains down for $&P 500 and Nikkei  MoM is also turning up for DAX and FTSE100 gives a speculative buy signal.  Bonds have reached our Top target at 130.65. MoM has reached a very optimistic +9, which means we better be careful for a sudden pullback here.  Gold in rally mode. First Top targets are 1244 and 1274 (see page 5).  EURUSD remains very weak. Waiting for MoM to turn back up.  Oil has not mustered any rally and MoM has turned back down. This is a continuing decline until we see MoM turn up again. This is a long wait on Oil, but we will get a rally eventually. The question is when. Daily Reversal Levels © LunaticTrader.com
  3. 3.  Buy signal for Australia and Hong Kong.  Sell signal for MSCI world index.  Can take partial profits in Dow Uitlities.  MoM has reached the maximum +10 for China. Up 54% in 24 weeks. We called for this move on our blog in June: Buy China  Comment: Not a bad week after all. But MoM remains down in a lot of markets and that continues to be a concern. On the bright side we have Australia and Hong Kong getting into the bullish camp, and the Asia-Pacific zone in general is displaying more strength than the rest of the world. Weekly Reversal Levels for World markets © LunaticTrader.com
  4. 4.  Buy signal for MRK, which is a “bounce right back” situation as it gave a sell signal last week. Usually it is very bullish when you see this.  Weak buy signal for KO  Partial profits can be taken in DD and GS  22 stocks bullish, up from 20 last week. Above 20 = healthy bull market. See article: Keeping an eye on the Dow stocks  Comment: Improvement this week with now 22 stocks bullish, giving the Dow some breathing room going forward. It is a healthy bull market until proven otherwise. That's the good thing about the weekly levels, they are quite steady and do not listen to the day to day news and noise. When a bear market starts, and that will happen sooner or later, then we will see the number of bullish stocks drop below 15. With reversal levels we just go with the flow. Weekly Reversal Levels for 30 Dow stocks © LunaticTrader.com Note: the weekly reversal levels for over 1000 stocks and ETF can be picked up for free on my blog every weekend The daily reversal levels for over 1000 stocks and ETF are available for a few $ on Scutify every day: click here
  5. 5.  New Top1 target for Nikkei at 18285  New Top2 target for Bonds TLT at 135.72  EURUSD is at its Bottom 1 target. If this level doesn't hold then we will have to consider the weekly Bottom target at 1.14  Stock indexes are now pulling back after testing their Top1 targets.  Crude Oil is right at its weekly Bottom target at $53 We may get a rebound from this level. . Target zones Legend * = new or updated target (W) = major weekly target Note: we use a +/-1% zone around these targets. The target zones are a by-product of the reversal level calculations. When a target is reached the market will typically react and turn back from it. On the second or third attempt the target finally gets broken and then the next target comes into play. So these 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 target zone it is very likely that the market has reached a temporary peak (or bottom). For more details about the target zones, see: http://lunatictrader.wordpress.com/2013/08/20/key-target-levels/ © LunaticTrader.com
  6. 6. More details about the 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 reversal 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. Note: the weekly reversal levels for over 1000 stocks and ETF can be picked up for free on my blog every weekend The daily reversal levels for over 1000 stocks and ETF are available for a few $ on Scutify every day: click here
  7. 7. More details about the 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 reversal 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. Note: the weekly reversal levels for over 1000 stocks and ETF can be picked up for free on my blog every weekend The daily reversal levels for over 1000 stocks and ETF are available for a few $ on Scutify every day: click here

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