Monday, June 4, 2012

Cyprus Next in Line to Seek a Bailout - Market Analysis for week of June 4th 2012 by Singaporeseeds


Daily chart for S&P
 

Daily chart for Dow
 

Daily chart for NASDAQ
 

I wasn’t able to blog about the market last week as my in-laws were visiting. We did a road trip from London to Newtonmore in Scotland. We saw the British Dance Open in Blackpool and visited St Andrew’s Old Golf Course in Scotland. Also went to numerous sightseeing spots along the way. This Thursday, I’ll be going to Rekjavik, the Golden Circle Route and will be feasting on the delicious seafood in Iceland.

Anyway back to the markets….I saw an excellent short entry for the markets on Monday that I took just before I left on the road trip. The markets dropped like a brick over the week and we entered oversold conditions on Friday. We might bounce as far up as 1,345 over the next few days before continuing down to 1,150 for S&P. It is still a downtrend and any rallies will be better entries for shorting.

Recently there’s speculation that Cyprus may be seeking a bailout from the EU. This and a few other really pessimistic news coming from Europe should be enough to keep the market from rallying much.


Daily chart for Gold
 

Quote from my market analysis 2 weeks ago:
“We had gold bounce off support at 1,546 last Thursday. I believe we should see gold test this support again within a week or two before beginning a new rally.“

Gold tested support over the following 2 weeks before making a huge one day rally spike last Friday. This is the beginning of the next rally for gold. I was unable to enter a long position as I was driving somewhere in between the Grampian Mountains gazing at the breathtaking views of the loch and glens of Scotland.

We should see gold rally over the next few days and then come back down to test channel support. That will be a good and safer entry for the next leg up.

Friday, June 1, 2012

What time is it? 1 June 2012

I posted this on my FB Timeline yesterday...

"Ok... Haven't had proper time to blog it... But I am officially worried about the global markets. The price action and overall feel is really uncanny to a couple of years ago. When I get bad vibes, it usually means something.
All the pieces seem to be in place. The time for opportunity is upon us."

And what happened later in the trading session was a (dead cat bounce). Today, about 2 hours ago, the S&P500 started to drop and is currently down 15 points. While I expect a Friday in this climate to be down usually due to not wanting to hold over the weekend, this is more than that. And the usual first day of the month bullish tendency doesn't look anywhere near.

Well, it seems that I am not the only one feeling the bad vibes... Conrad also posted about a feeling of some geographical bad feeling... And only a few minutes into writing this blog post did he post a report on an earthquake in Tokyo.
See: https://www.facebook.com/conradalvinlim

Co-incidence?
I think not...
Some are more attuned to "energy" forces and if we listen hard enough, it's what others call a vibe.

Anyways, this is just one of those things that we independently felt and posted... What it means really will depend on you the reader to decipher. Point being, take heed.

The MadScientist






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