This chart studies major support and resistance lines from the past. As pattern can repeat in the future, it can help to learn what might lie ahead.
On my watching list, potential gain is big (100% ?) for the next 12 month.
Twitter got hit hard, but it is still a widely used tool (more useful than FB IMO). Waiting patiently for it to turn around... even bouncing to the first red line is still decent 10% gain....
Use how RSI behaved during 2007 and 2011 market correction to predict how RSI will behave in the current market situation. It seems to suggest market may bottom around September with 7-8% drop (In SP 500 term).
GDX showed sign of trend reversal, as it broke downward trend line and formed a higher low. Still need a higher high to confirm. Form the chart we can see a possible symmetrical reversal price structure and thus if indeed a new uptrend is forming, it could potentially reach $31 price level (given the parallel price channels) and provide 29 percent gain from...
This chart compares current gold price action with that in the 80's, as the settings are identical.
I published this chart before, this is the revised version with better illustration. It is a correlation study between 5 year treasury rate and SP 500, using simple projection. It suggests rate could peak around May 2015 at 3 percent, and market could peak May 2016 around 2250. Fundamentally, the Fed low rate and easy policy is still in play and the US economy...
EEM/SPY ratio is improving, and its down trend may have ended (a small breakout has happened, hopefully it can stay). Technical aspects of this ratio are also getting better.
Worked pretty well for the past year. Market characters do change over time, but market does tend to bottom when VIX and S5FI are at their short term extreme (upward and downward spikes). Timing the top is tricky though but price trend line and price moving average cross over can help.
This is a correlation study between FVX (5 year treasury rate) and S&P 500 index. Left pink vertical lines indicate 5 year treasury rate peak, and right pink lines indicate S&P 500 peaks. The left two pink line groups are historical facts and the right most one is a simple projection. Based on this projection, 5 year treasury rate will peak around 10/2015 around...
VIX is about to break out and takes the market down several percent?
This chart shows that the market rally has been built on a deteriorating internals since May 2013 (higher price vs. lower number of companies above 200 DMA), and this is concerning.
Is market plunge predictable? Well, this chart clearly showed that a couple months ahead of 2007 and 2011 market rout, SPY/TLT ratio diverged from SPY, and thus provided definite alarms. Right now we have the same alarm again. So be careful.
Market can do anything so be flexible. Anyway, this is what I think (speculate) the most likely outcome in the coming weeks.
No much to say, but trying to have an idea of an rising rate environment in the next 6 to 18 months.
Thinking about to add my DUST position for a potential 30% plus gain. Need some more time and patience until the bottom base is built. Still a little dangerous to enter now. But it is evident on the chart that MACD and RSI are diverging and are turning upward.
Recently, we can get mostly perfect marketing timing using VIX short term break out or break down, combined with VIX MACD, RSI and Stoch signals. Market is very dynamic, and patterns work until they do not. Using this pattern to predict next short term market top: VIX break out to the up side, and VIX MACD turns positive, and Stoch crosses over signal line from...