Consolidation going into the FOMC announcement

Markets traded to weekly resistances: Qs 48 +/-R, DOW 12891.86 with 13000 R, Nasdaq 2422.93 with daily DTL at 2450 +/-. Since Jan and Mar 2008 climactic market actions, I noted that markets will likely be heading upside going into EOY. Now markets are trading at IT pivotal resistances as shown on the weekly charts.

Breaking above the resistances is positive adding more confidence to upside market actions heading to EOY. Earning reports are generally positive than we expected even though we have heavily sold stocks as some financial stocks.

I commented on "Tran" breaking out when it has broken out.

http://investorshub.advfn.com/boards/read_msg.asp?Message_id=27770540

Now, it is retracing to Jul 2007 high trading above Oct 2007. This is a positive technical signal as Tran is leading per Dow Theory which also noted on 4/4.

http://investorshub.advfn.com/boards/read_msg.asp?message_id=28209065

For VST:

Markets consolidated in a narrow range for 2 weeks going into the FOMC announcement tomorrow at 2:15 pm. After the announcement, markets will likely move strong. Nevertheless, we have seen relatively good earning reports especially from international companies, such as "V" and "MA".

It will be interesting market actions even though a pull back is anticipated.

Qs retested the recent high today, near 48 +/- and SPX to 1395 which is at daily R. The SPX daily formation is showing reversal at the ST R 1400 +/-. A pull back going into the next cycle pivot in Jun would be a good vst correction to work off neg D and gaps.


$TRAN & IYT: Markets are showing neg D, and I am anticipating a pull back going into Jun cycle.

$TRAN is also showing neg D.

IYT breakout from 83, and traded near to target 94 +/- R

American ball squeezer : Oil 200

American oil guzzler fool SUV ball squeezing oil 200:

The Organization of Petroleum Exporting Countries (OPEC) is a large group of countries made up of Algeria, Angola, Indonesia, Iran, Iraq, Kuwait, Libya, Nigeria, Qatar, Saudi Arabia, the United Arab Emirates, Venezuela, and Ecuador (which rejoined OPEC in November 2007). The organization has maintained its headquarters in Vienna since 1965, hosting regular meetings between the oil ministers of its member states.

The Organization of the Petroleum Exporting Countries (OPEC) is a permanent intergovernmental organization, created at the Baghdad Conference on September 10–14, 1960, by Iran, Iraq, Kuwait, Saudi Arabia and Venezuela. The five Founding Members were later joined by nine other Members: Qatar (1961); Indonesia (1962); Socialist Peoples Libyan Arab Jamahiriya (1962); United Arab Emirates (1967); Algeria (1969); Nigeria (1971); Ecuador (1973) -- suspended its membership from December 1992-October 2007; Angola (2007); and Gabon (1975–1994).




The Fed: Market expects 0.25 cut and I think that that's what we will get; however, we have invisible war using oil as weapon escalating inflation, squeezing American consumers, and causing economic turmoil.

OIL & CRB

We now have speculations oil to 200 with various excuses. USD devalued about 60% while Oil overvalued to 1000%, and it could be nearly to 2000% to squeeze American driving habit and American wealth. Without noting the underlying geopolitical psychology as noted on the charts, the excuses for the oil hype could very well be more than greed, but rather geopolitical and religious invisible wars.

Qs, SPX, DOW, Nasdaq met 1st Targets

With FOMC meeting during next week, major markets traded to targets area, e.g. Qs 48 +/-. Qs near daily DTL after tagging 47.79 with 48 +/-R, DOW 12891.86 with 13000 R, Nasdaq 2422.93 with daily DTL at 2450 +/-.

Since the double bottom, as noted on 3/17 and 3/18, after testing LT supports, as shown on the weekly charts markets traded to weekly resistances after breaking out of the falling wedges noted since 3/19/08. Falling wedge formation is a bullish pattern. Since the 3/17/08 double bottom at SPX 1256, DOW 11756, Nas 2155, and Qs 41, markets have rallied 11%, 10%, 14%, and 17% respectively from the lows. I noted the double bottom in Jan-Mar 2008 likely to be the low for 2008 with the target of SPX 1650 as commented on 1/25/08.

I expect a pull back after the Fed announcement from the current resistances as we are at ST cycle pivot going into next cycle pivot in Jun. I am anticipating SPX 1330 +/-, Wave 2, will hold closing gaps which we have and that will set up Jun rally going into EOY. This is the "Wave 4" scenario from the Oct 2007 top. During Dec 2007, I explained technical and fundamental readings going into Jan-Mar 2008 double bottom as a meaningful correction from the Oct 2007 top.

While markets have not broken out of the IT down TL above 1400 +/-, I believe that markets will break above it going into EOY to SPX 1600 +/-.

IMF Reform and Global Growth Forecast

MF forecast on global growth

LT financial market performance, fundamental factors are important. As you can see on the global growth chart, the current growth level is slightly lower than that of 2000 even though financial market level is not. One of the reasons is that we are in global economy. While many stocks are sharply sold off, e.g. C and AMD, some stocks are doing well which is supporting markets.


Based on my analysis on US GDP growth projection by "IMF" shows that US is at a bottom and projected to grow going into the second half of the year. This confirms what Bernanke stated.

Real GDP outlook shows that US GDP will see a sharper rebound to 2006 level going into 2010 while emerging economics will be leveling off.


IMF Reform: Statement by Secretary Henry M. Paulson, Jr.

Washington, DC –Today ' s meeting takes place against the backdrop of considerable challenges to the global economy. In recent years, global economic conditions have been quite favorable, with growth averaging nearly 5% per year. 2008 will be a more difficult year, with headwinds coming from adjustments in the U.S. economy, financial market stress, higher commodity prices, and higher than desirable inflation. Downside risks will vary, and many European and emerging market economies have stood up relatively well so far to the recent financial turmoil, but no economy is entirely immune from global forces. In this context, it is critical for policy makers to put in place sound policy frameworks that support growth and enhance economic resilience.

Suffering USA by super-duper class

VIX: Big wealth greed power destroying USA.

Not many do anything about it, not even a few, like modern saint Bill Gates.

Bleeding Markets: dracula teeth is again sucking out 401k holders and American wealth, now, they are to their bones.