Price Action Trading | Dow Jones Index – Equilibrium Trading

In the last workshop and market outlook seminar, we had a chance to briefly touch on the US markets, and within seconds I was able to decipher the direction based on price behavior.

This was also partly the reason why I took my profits on the EUR/USD and Gold shorts as mentioned a few posts back; true enough there was a sudden plunge in the USD, affecting all the majors, and causing the EUR/USD and Gold to spike up.

This looks poised to carry on pushing up to test the prior swing high, with a one-bar flag in the middle of the equilibrium range. I will be following up on this during the next market outlook seminar.

^dji 181013

Where will the US markets head next? And how will this affect the local markets?
I will be sharing my latest analysis here:

The Global Economy Summarized in 5 Charts

I have chosen 5 weekly charts to provide an overview of the global markets, and to see where we are likely to be heading next. The black horizontal line denotes the 2007 highs, to provide a reference point for comparison. The blue boxes indicate key behavioral clues for us to read and time the markets.

First off, we can see that the US markets are the strongest, surpassing the 2007 highs, and looking poised to push even further.

^dji 020813

^gspc 020813

Next, we move on to the European markets, which have not recovered much. The decline has been plugged, but instead of recovery, all we see is a slow chugging movement elucidated by a prolonged sideways market.

^stoxx 020813

Nearer to home, the China markets have been extremely weak, continuing an aimless drift downwards. It does not look like it would be recovering any time soon.

^sse 020813

Lastly, this is the chart of the STI, straddling the middle ground between the strong US markets and the weak China/Europe markets. Since we have already recovered by more than 50%, I believe there is a good chance we will make a push to test the 2007 highs.

^sti 020813

Currently, I am still holding on to my long positions, which are already deep in the money, and recently initiated some short positions. Here are the previous documented posts:

On Tuesday, I will be sharing more at my live event, and you can drop by if you have any questions about the market. Actually, the event is already sold out, but if you don’t mind standing, or taking the chance that some people might not turn up, you can still drop by to avoid missing out on this event.

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US Markets – Testing Top Soon

2013Feb-Dow Jones Industrial-800x600 

2013Feb-S&P 500-800x600

Singapore Stocks | The First Trading Day of 2013 – A Good Year Ahead!


Do you see what is happening on this chart? This chart is unique because it presents all 4 of the BIG Moves setups: BIG Break, BIG Swing, BIG Bounce, BIG Turn. Even without the lines and moving averages, just observing this price behaviour makes it easy to catch over 100 ticks on this chart, all in a day’s work!

This is not a get-rich quick scheme, rather this is the daily consistency that will give you the confidence to trade and profit daily from the market. As you become better at it, then you can consider it as a replacement for your income, and perhaps even trade for a living.

Last year, during my last talk of the year, I said that there was going to be more upside for the indices, and posted some charts on it. Today, the market is starting strong for the year, and we will see how far it can go.

This year, I will try to help as many people as I can achieve their goals of financial independence through trading. Personally, my own goal is to save up enough to afford my own house soon, because I do not like the idea of getting heavily in debt.

Wishing all traders a Happy New Year!

P.S. I will be starting my first talk of the year in January to share more about behavioral analysis, so do sign up for our mailing list if you wish to keep in the loop!

Singapore Stocks | FOMC – Market Moving News

Prior to the FOMC meeting, the EUR/USD and EUR/JPY surged ahead, but Gold was undecided and tricky to trade with wide spikes and fluctuations. I just finished giving a seminar, hence I did not have much time to trade much today.

Looking at the charts of the STI and the DJI, I noticed that both exhibited a similar “bounce-off” pattern from the 200-EMA, signaling that the uptrend, while not as strong as before, is still intact. I will be watching to long on pullbacks to the value zones.