XLF: Forecast To A Banking Fall? The Harmonic Ichimoku Cloud
Number 1 is high. Number 2 is low. Number 3 is cloud .236. Number 4 is for two cloud Fibonacci retracements at 50%. Number 5 is the likely cloud reversal at Fibonacci .786. YES, THERE IS HARMONY IN THE CLOUD.
Other technical indicators:
Here are the letters and what "TRADE-MAP" means to me (first the letters in TRADE):
1. T : Time and space (Fractals); 2. R : Repeating Cycles; 3. A : Advancing Trend; 4. D : Declining Trend; 5. E : Energy in Phase Forces.
Now the letters in MAP:
6. M : Momentum and Velocity; 7. A : Analysis of Structure; 8. P : Price Performance. There you have it: Don's personal "TRADE-MAP.
"Don's Top Ten Technicals": 1. The is lower than structure to the left. 2. Prices are trading BELOW the cloud. 3. Prices are trading consistently BELOW the thick red Conversion line. 4. The thick red conversion line is moving SHARPLY LOWER. 5. The thick black line is the Ki jun-Sen baseline of the and this is HEADING DOWN.
6. The indicator on the top of the page is / , and this is not strong on any up moves. 7. The top-side middle indicator is and this is NEGATIVE (red over green). 8. The Top (bar-type) indicator measures the "phase energy", and this is VERY WEAK. 9. The red arrows (not pictured) are DOWN. 10. Look to the far right on the chart, around $23. You will notice a yellowish line on the bottom (jaws), with black dots above (teeth), and a blue line (jaw) above the black dots. Now, all three are OPENED, correct? This is where I ask you to use your imagination and envision these three items as the "jaws, lips, and teeth of a NOW AWAKE, FEEDING , and the is feeding into the DOWN-TREND.
I can only conclude the banks and financials, as measured by XLF-are weak and will get weaker. If European banks fail, this could spill over to the United States.
Disclosure: I have gone short XLF-many times this year, and currently hold positions for a further decline.
I would like to close with a quote from John Mendosa: "Ever wonder if illiterate people get the full effect of alphabet-soup?"
I hope this has been entertaining and informative. I hope all of your trades go well. Don.