Thursday, 23 January 2014

Equity Markets (DAX, SPX) continued: I will spell it out! Why this is the turning point and why you should look for a short entry or at least pick up some puts.

Scroll Down to bottom for Friday 24th Jan update:

I just don't seem able to get through to you all about this. So here is most of my argument minus the entry short entry (which if you havent done already should be made in the next three trading days of 23 Jan , 24 Jan and perhaps Monday 27th January.If you prefer you can wait for the second attempt or rounding top that will surely follow. I don't know whats changed but it has plus there has and a fierce battle between Bull n Bear has been highly visible all this week.
Firstly if you are not conversant with Andrews Median Line Theory here is the case simply put.
1. We have reached the target ( centre lines) of two historical Andrews pitchforks. The target/objective is finally reached and there is no where else to go but down. Not only are these two Andrews pitchforks massive but they contain all the data that is possible since the DAX futures contracts inception ( 23 Nov 1990) and this point ( low) is used as the P0 anchor for the giant PF.

 This one contains the reaction line that price appears to have passed straight through. But look back at how price often passes through and then stalls before falling.
 Price has been aiming for these two centre lines and it could be argued that there is no further upside target although the rounding or topping out process could easily contain another new high so take great care.
 Not only this important fact of the two centre lines being pierced  but if you look at price behaviour you will see that each successive move up has had a successively shallower retracement until we have seen an almost hysterical price pattern that must climax.
 Now we use my proprietary line location technique. Simply put our data representation system ( here using Jap candles and Time Vs Price on X & Y axis) is missing a dimension. Perhaps we need to look at 3 D data systems such as Nanex JTools price sequencer because after sitting infront of a screen both as a professional and now a private trader probably for longer than some of you have been alive I can see that our reaction lines and indeed all linear studies applied to charts have another dimension to them and are infact more like vibrating energy fields which curve and as such can have more than one location in different time frames. If you want more information you should contact me.
Anyway as i showed this image on both sites ( and Here is the DAX with the full 100% reaction line from the historical PF's shown above. Also look at behaviour at reaction lines. These fall into recognised  and repeated Median/Reaction line combo patterns that I have identified over the years and use for entries in conjunction with the slimmed down B-Line and 2X template:

  This is the line location of the same line in the 240 min. No drawing new lines this simply moves as we drop down from the daily ( above) to the 240 min below. This was the position a few days ago.

Now look:
reaction line in red and dotted red ( same line different TF location plus the Centre lines are shown and offer us real insight into the trading zone ie supp/res)

  Now we add another D/s PF + RL's (see its effect yesterday?)Gap repoening last night and down but....

It's not going to be easy but we are heading back to the centre line that was untouched in the previous attempt at 9640. If you want the full report plus the entry plus our stop and risk levels pls contact us.
UPDATES TO COME and links in previous post plus the ES

Friday 24th Jan 2014
Don't expect the tape to snap back. First objective reached for ES and DAX but we need a move below 1800 to 1792 or DAX 9370 but perhaps a bounce first but downside momentum should build. YM also shown below. NB: These are local forks and the move will be far greater but these CL objectives should once reached show a bounce and further upside before correction/move lower resumes

Wednesday, 15 January 2014

The DAX . Are we near the climax? Plus the Spoos

 I warned all subscribers on 20th Jan  that this is highly probably the top:

here's todays comment:

 Heres what i published on 15th Jan below

These are the big daddy's Pitch forks/median lines that can be drawn on the DAX. I suggest you draw them yourself and see what you think. We still have to reach the black centre line & are not far off and it appears we are running on fumes to get there having now made a HH but one more push and then i suggest we could then see a similar topping pattern & even though the fundamentals particularly for Germany are promising the overall outlook in Europe is mixed. As someone who lives in France I should know and I wont even start writing on that divisive subject. Instead I want you to observe the different line locations in each and every time frame and notice the difference. If you are shrewd you will be able to realise the limitations of our data presentation systems such as a 2 D bars and candles, Price Vs time etc and will be able to not only see market structure but use this simple example to your profit.If you cant make sense of it or what I am on about check out our site Below under these simple DAX forks is a more complicated Spoos example.
Infact the situation isnt simple as these lines have different locations in each time frame.

Heres the emini S &P and another historic reaction + pitchfork study.Its a very different picture with a singular lack of higher highs. The reaction lines are drawn by auto indicator. I have gone over them with manual trend lines and you will see the thicker lines are manually inserted. Look at how they define the range.. supp + res etc.

Monday, 6 January 2014

Crucial turning point for Gold lies ahead at $1150 or does this pitchfork reveal we have already bottomed?. Critical historic mega Andrews Pitchfork + DAX.

Continued form previous post... why has Gold bounced here then?
Look at two pitchforks below

 heres the effect on price form the centre line