Well it has been long time since i posted anything but i have been away for over a month to Brisbane meeting up with traders and learning a whole heap! Might even have a job working on a trading desk but ill wait and see if i cant make more from home. LOL
Anyway i have come back and have been studing the works of W.D. Gann and i can say i am very impressed from what i have learnt thus far but this study will take years and years to master but the work put in can definatily be worth it for the returns you can get by being able to pick exact tops and bottoms of the market to the exact figures! Crazy i know but it works, Maths is actually useful!!
Anyway ill pop a few Charts up for you all to keep you busy.
This first one is STO and it is basically some Gann Fan's applied to the highs and lows of the stock. These are time and price projections and where these lines intersect on the different time segments can create turning points in the market as i have indicated on the charts. Just some of the stuff i am trying to get my head around!
The next chart is of CBA which i am bearish on looking at the chart which looks to have formed a head and shoulders pattern which i feel might play out if the market gets a bit of a scare and some volume comes through. Something to think about if your longterm holding CBA espicially with the confirmation of the volume on the pattern which initially alerted me to the pattern.
Another bank i have been watching for a short move is WBC but i got stopped out before on this so maybe now it is time for another trade on the short side? The charts below show the gann fans again with a resistance point on the weekly being hit, the week also closed below the highs of the previous candle signalling weakness. Also the swing chart shows the first lower low since early feb, if a lower top comes about a down move could be coming for WBC also. Again lets see if it plays out. Certainly 25% since feb sounds pritty good if i was holding that damn greedy people :P
Last of all is the XJO which looks to be making a megaphone pattern which is a bearish topping pattern which consists of higher highs and lower lows. These moves can prove bearish as the market tops out. We have had a big move up since the lows and the market could be absorbing some time sideways for the next few years. Some of the more experienced traders i have spoken to recently think that we are going to be sideways for a few years yet before a big move up around 2012/2013 so fingers crossed we can get a big move there.
Basically the market had a strong rally because we paniced to much when the market fell over and now we have rallied strongly with the help of China and commodites along with a weak US dollar, Now that things have come back into a more normal state and earnings are improving the market will be moving sideways i feel. The company results have not been strong enough to continue the move i feel and we should move along as the market still improves until the next bull rally when company earnings and projections really start to 'boom'
time will tell just some thoughts.
I will try post a bit more regularly for everyone and if not on here on Hotcopper :)
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