Monday, September 27, 2010

WMA for week ending 1st Oct 2010 - Hibernate the bear

The weekly TIP chart is still in an uptrend with the volumes are dropping. The daily chart had rallied and now appears to be retracing. The TIP rally is still on, and possibly ending, but obvious signs have yet to be seen.

The weekly JNK charts is indicating a bullish rally but the indicators are still weakly bullish. The daily chart has had a recent mild retracement and looks bullish at the moment

The weekly copper chart looks bullish but cautious. The short term bias is bearish but the longer term indicators still indicate bullishness. The daily chart shows copper overbought for a few weeks and should be retracing this week.

According to the above leading indicators, it looks like a early flattish week in the market and a likely retracement from mid-week.

The USD weekly chart suggests that the downtrend continuing. The daily chart affirms that there is some more way for the USD to fall further. Indicators for both weekly and daily are rolling over to bearish tones.

SPX / S&P500
The SPX/SPY (S&P500) looks very bullish, especially for September. The weekly chart has registered a higher low, with technicals looking bullish. The daily chart still has a couple of days of continuation of this rally, which needs a retracement soon as it is overbought. Retracement potential is coming, possibly by the end of the week.

/GC / Gold
The Gold futures weekly chart is in the midst of a rally that appears to have continued to making a new high. Bearish divergences indicate an imminent correction to the 1000/1100 level. The daily chart is overbought with a bearish divergence. This signals a correction to come soon.

/CL / Crude
Crude weekly chart is about flatly consolidating. Similarly, the daily chart has broken above and below, and currently looks possibly bullish if it does not fail to put a new recent high, instead of a fakeout.
The MadScientist – 27 September 2010

Note: Any material posted here is of my sole opinion, and my opinion may differ from others. It is definitely NOT a solicitation to do anything else as a consequence of reading this material. The material presented here is intended for educational purposes only.

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