DESERT OF DREAMS: US Market Thoughts 20 June 05

MY TAKE ON INVESTING

Like everyone else, there is only one reason why I study, analyse and participate in the financial markets - and that is to make money. But the difference with me and most other people is that I am willing to use anything (legally) possible to do it. If counting the number of cockroaches that I see everyday gives me an edge in the market, I'll do it. If it works, I'll use it; be it keeping tabs on the economy, looking at charts and indicators (technical analysis), looking at value or growth potential (fundamental analysis), profits & earnings + other related market activity (quantitive analysis), through insider activity + consumer surveys (sentiment analysis) and yes even astrology.

I've spent over five years monitoring, studying, observing and trading the financial markets. My quest was to find out what makes the financial markets move, to find something substantial, something that will provide consistent monetary gains. I don't want to just accept what other authors say/write as gospel truth, I want to know why. In 2005, I took a masters degree in finance to see if what they teach in the university adds any value towards investing success - the answer is 'not really'. Investment knowledge builds up with time - what might seem unimportant to you now may become what you need to get you to the next 'level'. Such is my experience with fundamental, quantitative, economic and sentiment analysis.

What you see in this blog represents quite a number of item(s) and technique(s) that have met - like what W.D. Gann says - my '(utmost) satisfaction' and I hope that they can be of use to the investment pilgrim who's also on a quest for understanding and success.

Please Support This Blog By Clicking On The Advertisement(s) In The Sidebar If The Content Has Been Helpful To You. Thanks.

Monday, June 20, 2005

US Market Thoughts 20 June 05

The NASDAQ managed to close in slight negative territory after being down as much as 11pts early on due to the high oil price. It even managed to trade into positive territory after lunch. Volume came in at 1.4billion, significantly lower than the 2billion last friday.

Last friday was a narrow down bar closing at the low with high volume. So it may seem like further distribution (started in early June) is taking place with today's action - moderate up bar closing in the middle with low volume - suggesting that buying strength is weak.

The market will be a 'buy' once it breaks 2100 on firm volume or a 'sell' once it breaks 2050 on firm volume.

A possible factor to consider is the abnormally high number of puts being bought in the LEAPS market while the normal equity puts have came down significantly. So these 2 are not telling the same story. Thus the market is still likely to resume it's uptrend should the pros decide to destroy those that are 'putting' the LEAPS... we'll wait and see...

Techincal indicators are on the high side at the moment, with the 5-day slow stochastics doing a bearish crossover and the MACD still in bearish mode (quick line below slow line). I would however, give more weight to the above 2 items.

0 Comments: