key reversal levels for week of october 20, 2014
DESCRIPTION
Weekly key reversal levels for stocks, gold and currencies. Including my weekly comments on the state of the markets. Trend following method keeps you on the right side of the market most of the time, and helps to avoid big losses on investments.TRANSCRIPT
Key reversal levels for week of October 20, 2014
All major stock indexes are now in weekly bearish mode with downward MoM.
Bonds (TLT) stay fully bullish with upward MoM. Now up 13.5% since bonds turned bullish 38 weeks ago.
MoM is turning up for Gold and EURUSD, which suggests a tradeable bottom is in. Weekly MoM at -9 for Euro is a record low for this currcency.
Oil remains fully bearish. Oil is down 18.3% since it turned bearish 14 weeks ago.
Weekly keys:
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Daily MoM is turning up from very depressed -9 levels for Nasdaq, S&P, FTSE100 and DAX. Markets will probably try to climb back towards their daily key levels.
Bonds probably peaked on Wednesday and daily MoM is now down.
Gold is in rally mode, but we need to see follow through.
EURUSD is coming close to its daily key level → one to watch.
MoM turning up for Oil → will try to climb back to daily key level.
Comment: A lot of very oversold markets with MoM turning up. Looking forward to an interesting week.
Daily keys:
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Weekly sell signal for Vietnam MoM is now down for all markets. Markets to watch, coming very
close to turning bearish: Mexico. Comment: I can only repeat
myself. This is a time to be patient. No signs of a bottom until we see MoM turn up for some market(s). If you like to go short, then sell the rallies in markets that are weekly bearish (red).
Weekly keys for World markets and sectors:
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Sell signals for DIS, JNJ, JPM, MRK, VZ and WMT
10 stocks bullish, down from 16 last week. Below 15 = bearish market. This is an important change, now is a good time to read my article: Keeping an eye on the Dow stocks
Comment: major deterioration in Dow stocks with only 10 stocks remaining bullish, the lowest since September 2011. If you are a conservative investor then it is best to stay out and wait until we have 20 or more bullish Dow stocks again.
Weekly keys for the 30 Dow stocks:
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A new Top2 target for Bonds(TLT) at 130.65
Comment: Stock indexes and Oil all hit our Bottom targets last week, with some indexes closing at them for several days in a row. Watch out if these levels get revisited, on a second visit they may get broken and then the Bottom2 target would come into play.
Key target zones:
Legend* = new or updated target
Note: we use a +/-1% zone around these targets.
These key target zones are a by-product of the key level calculations.
When a key target is reached the market will typically react and turn back from it. On the second or third attempt the target gets finally broken and then the next target comes into play. So these key target zones can be used as price objectives for taking profits or for entering the market after a significant sell-off. They can be seen as a kind of pivot points.When MoM indicator reverses right near a key target it is very likely that the market has reached a temporary peak (or bottom).
For more details about these key targets, see: http://lunatictrader.wordpress.com/2013/08/20/key-target-levels/
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More details about the key reversal levels and how to use them in your trading can be found here: http://lunatictrader.wordpress.com/key-reversal-levels/
Blog: http://LunaticTrader.Wordpress.com
On Twitter: http://twitter.com/lunatictrader1
On Scutify: http://www.scutify.com/profiles/scutifier.aspx?q=LunaticTrader
On Stocktwits: http://stocktwits.com/LunaticTrader
For daily key levels, regular market commentary or questions you are welcome to follow or contact us here:
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Disclaimer
Investing in stocks, forex or commodities is risky. No guarantee can be given that the opinions or predictions given in this presentation will be correct.LunaticTrader cannot in any way be responsible for eventual losses you may incur if you trade based on the given information.Simulated trading programs in general are subject to the fact that they are designed with the benefit of hindsight.No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Trade at your own risk and responsibility.
More details about the key reversal levels and how to use them in your trading can be found here: http://lunatictrader.wordpress.com/key-reversal-levels/
Blog: http://LunaticTrader.Wordpress.com
On Twitter: http://twitter.com/lunatictrader1
On Scutify: http://www.scutify.com/profiles/scutifier.aspx?q=LunaticTrader
On Stocktwits: http://stocktwits.com/LunaticTrader
For daily key levels, regular market commentary or questions you are welcome to follow or contact us here:
© LunaticTrader.com
Disclaimer
Investing in stocks, forex or commodities is risky. No guarantee can be given that the opinions or predictions given in this presentation will be correct.LunaticTrader cannot in any way be responsible for eventual losses you may incur if you trade based on the given information.Simulated trading programs in general are subject to the fact that they are designed with the benefit of hindsight.No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Trade at your own risk and responsibility.