Outlook 3 October
Posted by Danny on October 3, 2011
Another very volatile week.
The market tried to go up, as we expected, but failed and fell back rather fast.
As a result the recent lunar Green Period recorded a 127 loss on the Nasdaq.
This is the worst Green Period since we started this blog.
It means the market continues to act very weak, and we better be careful going forward, especially since we have now started a new lunar Red Period.
Let’s take a look at the Nasdaq chart (click for larger image):
We are holding only just above the support trendline coming from the 2010 lows.
This means there is a serious possibility of testing and breaking below the recent August lows in the current Red Period. Our earlier target of 2300 is within reach, and a panic move could even take us to 2100.
If the Nasdaq manages to hold above 2360 in the next couple of weeks, then we would get a signal of strength and then the prospects for the coming months would brighten.
So for now: ‘wait and see’ is the place to be.
Danny
Curt Smith (@curt504) said
Hi Danny, I’m a practitioner of delta like color of day and color of week patterns derived from a training classes I took from the principal at programtrading.com. I’d like to know what your/the patterns are for color of month/quarter are? Is there a book, URL, doc you could send me that I could study?
The historical pattern of each color of month/qtr? I truly believe in and see that this view of time periods does work. It is boggling to wonder how it does work but empirical back testing shows that patterns do exist as you are interpreting. Good call on the bounce or else call. :)
tnx curt
Danny said
Hi Curt,
You can find more details about our research and method on the lunatictrader site.
http://LunaticTrader.com
Danny