Market Analysis & Forecast 05/20/2009
http://trend-signals.com/Analysis/090520.htm
Bearish Churning Markets at Pivots
Fed lowered GDP expectation
Markets reversed after the Fed minutes were released with downgrading GDP expectation. Markets are still trading high multiples to trying to lure in small investors as cnbc reported that we still have 4.3% side line cash which is slightly reduced from 4.8%.
* We know that markets are overpriced as, in reality, we are less wealthier than last few decades as shown on the long term chart on page 3.
* With the misrepresentation of economic reality priced into markets, expecting markets to trade higher is certainly unrealistic and manipulative even though markets can easily be taken to upside.
* Markets are trading near at major resistances:
SPX 930 +/-, DOW 8600 +/-, Nasdaq 1770 +/-, NYA 6000 +/-
* As previously noted, it is deterimental to hype markets while we do not have genuine economic growth as prices will go up while real wealth is not generated; hence, we will see hidden inflation. Don't be fooled by the market hype as, at this point, many are waiting to unload positions to late comers.
* Low volatility readings to VIX 26.57 / VXN 27.87 can be orchastrated.
* VIX/VXN are trading at IT supports.
DOW daily
* DOW 8422.04
* DOW rallied to 8600 resistance and pulled back closing with a falling hammer formation.
* Even though the formation is a bearish formation signaling a likely reversal based on the recent market actions and sentiment, it is better to be cautious and look for a confirmation for a break from a lower price channel shown on the DOW daily chart.
*At this point, being in cash is safer as markets already rallied 30% from the low. If you have not exited markets, it was worth to stay in the markets. Evidently, there are still saideline money.
* Markets are continuing to show negative divergences.
* The Fed forecasted lower GDP and job growth. Ref to the link on Page 1, FOMC Minutes.
EXTREME MARKET MANIPULATION
* Markets are trading near at pivotal resistances.
* Markets were trading in strong trends even though we are seeing negative momentum in price and breath actions.
* Markets are showing highly manipulated price actions.
* With the higher volatility, markets are inherently possess higher risk.
* Financial markets are normally leading economy, however, remember that US household income has been demolished during the last decade for many.
http://trend-signals.com/Analysis/090520.htm
Bearish Churning Markets at Pivots
Fed lowered GDP expectation
Markets reversed after the Fed minutes were released with downgrading GDP expectation. Markets are still trading high multiples to trying to lure in small investors as cnbc reported that we still have 4.3% side line cash which is slightly reduced from 4.8%.
* We know that markets are overpriced as, in reality, we are less wealthier than last few decades as shown on the long term chart on page 3.
* With the misrepresentation of economic reality priced into markets, expecting markets to trade higher is certainly unrealistic and manipulative even though markets can easily be taken to upside.
* Markets are trading near at major resistances:
SPX 930 +/-, DOW 8600 +/-, Nasdaq 1770 +/-, NYA 6000 +/-
* As previously noted, it is deterimental to hype markets while we do not have genuine economic growth as prices will go up while real wealth is not generated; hence, we will see hidden inflation. Don't be fooled by the market hype as, at this point, many are waiting to unload positions to late comers.
* Low volatility readings to VIX 26.57 / VXN 27.87 can be orchastrated.
* VIX/VXN are trading at IT supports.
DOW daily
* DOW 8422.04
* DOW rallied to 8600 resistance and pulled back closing with a falling hammer formation.
* Even though the formation is a bearish formation signaling a likely reversal based on the recent market actions and sentiment, it is better to be cautious and look for a confirmation for a break from a lower price channel shown on the DOW daily chart.
*At this point, being in cash is safer as markets already rallied 30% from the low. If you have not exited markets, it was worth to stay in the markets. Evidently, there are still saideline money.
* Markets are continuing to show negative divergences.
* The Fed forecasted lower GDP and job growth. Ref to the link on Page 1, FOMC Minutes.
EXTREME MARKET MANIPULATION
* Markets are trading near at pivotal resistances.
* Markets were trading in strong trends even though we are seeing negative momentum in price and breath actions.
* Markets are showing highly manipulated price actions.
* With the higher volatility, markets are inherently possess higher risk.
* Financial markets are normally leading economy, however, remember that US household income has been demolished during the last decade for many.
| May 20, 2009 Market Analysis and Forecast  |
No comments:
Post a Comment