I hate weekends because there is no stock market. ~ Rene Rivkin
A great session on Friday in which our TMS system took 1256 points from our GBP.USD sell signals! Our members have been on the right side of the dollar's upside moves and the falling knife aka recently as the 'Euro' has been shorted nicely by us.
Dow Four Hour Chart
In light of the recent Euro slide we would have liked the U.S. markets to have moved lower after all they have been in close synchronisation lately. The Four Hour chart shows what we're currently watching. The story is simple - the 11,000 Dow mark is the line in the sand and if we get a four hour candle close below this number then expect the markets to slide a lot lower. We warned you all that the U.S. markets would slide soon, warned you all the dollar will start to rally when the others found it hard to express the words dollar and rally in the same sentence. We said the decline for the Euro would soon materialise and it did! 1200 points lower from the high printed at the start of THIS month!
We also stated how a Santa clause rally may not occur this year! So of course we might rally but mark our words 10000 before year end is not that much of a big move. TWO days of 200 point declines and we will be in the zone!!! Either way, simply look the blue line above. The Nasdaq100 was lagging at the open but now is firmly taking charge. If this stories continues and we are able to get a candle close below the blue line then expect a pure bloodbath.
Euro Four Hour Chart
We patiently waited with our TMS short signals and have caught over 2000 points in line with recent declines. It is totally Pertinent for us to say 'we told you so' because to put it simply - we did!
You've seen the charts where we got our sublime TMS sell signal at the top and now you can see the pace of the decline against the rise. We might be due a bounce but overextended action in these circumstances can get even more overextended! 12600 - 12800 is still probable and the falling knife could well take out 130 although the lower end of the declining channel meets at 130 so you could expect a psychological bounce at this area.
The U.S. markets haven't fallen in line with the advance they shared with the Euro in September/October. Do be cautious as the Dow Jones can simply catch up within a few sessions and then you'll see ugly patterns all over the place!
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