LunaticTrader

Investing with the Moon

Outlook November 29

Posted by Danny on November 29, 2010

Our most recent Red Period recorded a 20 point loss on the Nasdaq.
The last day of the Period saw a 50 point rise on the Nasdaq, so there was potentially a much bigger profit for shorts in this Red Period.
But for the purpose of our performance record I always use closing prices.
If the Red (or Green) Period ends before 12 noon (NYT), then the close of the previous day is used, otherwise we close on the day the Period ends.
This is to keep the record honest.
I have updated this on our performance page.

***

So far it looks like the uptrend is staying intact.
The swift rebound suggests the path of least resistance is probably still up, and the market can now use this Green period to climb again.
My first target would be near the recent highs, around 2600 on the Nasdaq, where could get a double top formation.
There is possible mid-week weakness due to Black Period, when certain actual crises could come to some climax (Korea, Euro,..?), but next clearer sailing till mid December.

Stay tuned, Danny

3 Responses to “Outlook November 29”

  1. Idris said

    Danny, how does your Lunatic Trader compare to your Four Pillars software. ? both Dec’2010 and Jan’ 2011 look up for the Four Pillars.

    thanks

    Idris

    • Danny said

      Hi Idris,

      The two systems are not connected in any way.
      LunaticTrader is based on the lunar cycles, while Four Pillars Finance uses solar cycles.
      The FPF is more long term, monthly and yearly predictions are its main use.
      The LunaticTrader approach is more short term, the Red and Green periods alternate every two weeks.

      So regardless what the FPF indicates for a given month, that month is always going to have a Green and a Red period in the LT system.

      Hope this gives you some perspective.

      Danny

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