As previously mentioned many times, the counter-trend UP into MAY from March lows would be the time to go cash, as the expectation that all global markets would be moving down toward the lows once again, and continue lower July-Sept as price push down towards their Yearly lows for 2008 ......
Aussie index XJO Cash market
Yearly lows are 4538 and the expectation is that the market will move that low, and probably in the next Quarter.
Ever since the 'crash' pattern began in January the market was heading down into 4538, but only after the 2-month counter-trend move from March Low back into the May's highs, had completed, and the expectation of further weakness down.
SPI Weekly Futures
Ideally I want to be moving back into Financials, but I'm not expecting any counter-trend move greater than the higher timeframe 50% levels.
That reversal upwards can occur from July's lows, but then the expectation is further weakness down into the Yearly lows.
Note:- As previously mentioned many times before, even though the 2008 lows might support the market this year, I'm expectating lower prices in 2009, where once those lower levels are reached we should bottom out this bear market, but I'll come back to that next year.
Dilernia Principle:- two timeframe waves pattern based on the Yearly timeframe
SPI Daily
Expectation SPI is continuing down, which could occur from the Weekly 50% level, or prices could push upwards into July's 50% level before continuing down.
But as a Day-trader on Index futures, I'm not concerned about which price action takes place....
SPI 5-day pattern and 44 point ranges.
Because I'm trading short-term 5-day patterns using the 5-day filter and spiral-point trading..
But waiting for the right price action to re-enter stocks looking for the next Counter-trend move back up into the monthly 50% level and where I'll go cash once again, before the next downward move into 4538......
- Daily Trading Set-ups & Analysis
