I must say the more time I see the Swiss team tested the more i like their methodology. Their approach is current best practice and its worth has been tested over and over in the time we have been following them.
To the report. An outstanding report once again.
The only level i would question is the SP500 1395 to 1400 level of support. I personally believe we could go to Sp500 1380 cash, at least intra day. Its a small detail i agree.
Looking at the DAX and Ftse100 note we are already very close to their key support levels. This demonstrates to me the cyclical ‘attack’ under way!
The reason i say this is the trader in me. Trading opportunists will want to use this weakness to make a profit from those that are late to the trade. A large volume of capital recently rotated out of defensive stocks and into cyclical themes. This capital was late to the party and is now under immense pressure to liquidate. The 200 dma on the sp500 is at the 1380 level. Copper is in breakdown. The Dx has plenty of room for a bounce and no macro news flow is assisting the euro here given Spain’s delay in accepting the bailout. We could easily get a spike below 1380 intraday would be my view but I won’t be looking or playing for this. I’m looking for the 1380 to 1385 level sp500 cash as the area to lose my shorts. This will place sufficient pressure on holders of cyclical socks to question their entries. That event would produce a pay day for the commercials so its an event that has some probability of occurring.
Looking for evidence of this note that the DAX and Ftse100 are, on this moment, very close to their key support levels. This demonstrates to me the cyclical ‘attack’ under way as these levels have approached far faster than index support levels on the dow and other defensive instruments.
Lastly, i agree with their main thesis that this is a buying opportunity and that, therefore, this bull trend remains firmly intact, for now.
Without more delay here the report.
http://www.capitalsynthesis.tech/wp-content/uploads/2012/reports/WeeklyTechnical-23-10-12.html
All the best
Rich
(10 votes, average: 5.00 out of 5)
Loading...