Monday, November 7, 2011

DJIA and Nasdaq 100

Hi all, sorry that the update is rather late this week, I were busy for the weekend coaching, attending my friend's dance studio opening, a few gathering and meetings, cutting cakes, pot luck... the weekend is simply --- packed and filled with a lot of blessings.

I hope all have enjoyed a great weekend, and those who are celebrating Hari Raya Haji (Malaysia & Singapore) have fun! Today is the last day of the long holiday, let’s make it count!

Wall Street:
We have NFP announcement last week, job creation is only 80k numbers, and the numbers indicating a rather stagnant job growth, unemployment rate is dropped to six months low (yey!) 9%, previous month 9.1%.

There are many other part of the world actually has higher unemployment... Spain 20.5% (September 2011), Euro Zone 10.2%.
P/s Malaysia: 3.1%. (August 2011)

Latest Data here


For power wave traders, you'll recognize that 80 is a good number for DJIA.
Previous week Dow hit to 12288, and last week in line with MF Global news, market tumbled, shed more than 550 points in two days, and recovered 50% on Wednesday and Thursday.

Friday is a neutral trading day and as usual we stay out of NFP.

What do we expect next?

From a smaller time frame, I am expecting market to recover up to 12150 region (another number 80, hey!)

P/s: if the bull is strong, we may see market test previous resistance 12288, break above it and form a marginal top @ 12450-500 region before the waterfall begins.

This week is a crucial week to watch for reversal, divergence, resistance, etc. etc. to catch the south train... can you smell it? Mid November we expect the rise to HALT, and I am EXCITED!!!

Short Term daily trading, Monday view: Consolidation bias up - Enter with Fibo Range:
Entry for YM (on my Broco MT4 CONT chart):
Long 11750
Short 12130

On IG Wall Street CFD:
Long 11810
Short 12190

And I will park another short at 12150 / 12210 for position trade.

Last week Day 1: Gap down, Day 2: Down, Day 3: Gap up, close gap, Day 4: gap up, Day 5: neutral...

Support: 2330
Monday: consolidation bias up to test resistance 2370. Nasdaq 100 trading at 2360 so the profit range is too small compare to the risk levels... (Risk 30 points: Reward 10 points), let’s say market return to 2nd resistance 2390 the risk is still less than 1:2... So I suggest to stay out of this market and wait for divergence / reversal pattern to form either at R1: 2370, or R2: 2390 by mid/end of this week.

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