Life is a ticket to the greatest show on earth. ~ Martin H. Fischer
Previous Dow Jones Comments:
Notice how price is at the underside of the red downward sloping channel shown by the four hour chart. Yesterdays low also sits at our yellow base line which needs to be taken out for price to really collapse. We will have to watch further for Tuesday's session and see if the oversold Euro can stage a turnaround from 130 which will no doubt turn the market's bullish.
Our Intra Chart Updates
For the past few weeks you have noticed our intraday chart updates which members obtain daily keeping them alert for projected price moves.
It is no surprise to anybody to hear that tradingmarketsignals.com was bearish on the Euro via our TMS system and we enjoyed the recent collapse of 1200 points provided by the market. So from 14280 all the way 129's and at which point did we look up? To put it simply we didn't look up
Euro Bailout - NAILOUT!
We didn't look up for the duration of this whole Euro's decline from 14280. Even when we felt the market could stage a minor bounce, we simply alerted members not to be part of it and keep looking down. Yesterday however was a different story. Anyone who was long during the decline may need there diapers wiping as the Euro's bailout must have been a painful exercise. We however managed to NAILOUT of the declines at the right point in time. The following chart was provided to our honourable members in our intra chart section:
We were happy to see price move under 130 and our TMS System issued a buy signal at 12987.
We sat back and let the games begin. To be honest we weren't looking for anything more than a 200 point gain and then we simply pulled the plug and our TMS system exited at 13086 for a 99 point gain. The testimonials have been flowing in steadily but they are no use to our global non member audiences as 'the proof of the pudding is in the eating'.
Here is that very Dow Jones Four Hour Chart which was provided yesterday:
The comments are at the top of this article and well it was apparent that the holding pattern wasn't folding and rally time was on the cards. We laid down our markers and the rest was down to the markets. A 300 point move to the upside from yesterday's lows and now does this mean we're bullish?
Why not? No, look this is not the name of the game. A computer reboots and every internet page has a refresh button and this is the same way in which traders must refresh, reboot and not marry one scenario. You always have to keep an open mind, daily!
So does this mean we are bullish? Does this mean we go back to the highs above 11400? Of course it's all probable and it can easily occur. We are at this moment in time look downwards and with it we are acknowledging this chart below. We don't change our stance, we trade our stance but we don't have opinions in our trades as objectively we will never marry opinions. You sleep and wake up to a new day every single day and this is how traders must reset to a new day and not marry opinions. The markets won't forgive you as the markets stubbornness will always wipe out the traders stubbornness. This is why it's best to flow with the markets and sometimes just sit on your hands if you are feeling uncertain as you don't have to pick a side every day.
Here is the Dow Chart we're watching today.
The Hourly chart shows four attempts to take out the upper red line over the past few weeks and repeated attempts to the bottom of the range also. Notice the indicator along the bottom has also become over extended. I do not want to say much here but currently the Dow is battling with 11200 and if the Euro decides to turn red then I'm sure 11200 will vanish.
The Four Hour Chart above give a similar story as the red range channel has been pitched. So the impressive rally isn't that impressive yet. The most worrying area is the blue line which is the previous breakout fake out line. Since declining from 11400 the market has failed from this line on a few occasions. So we would say it would be best to act with caution as yes the market could go either way here BUT remember the CLOSE counts.
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