Friday

Chart Morphology: Dow Forecast

Post a Comment March 6, 2009 – 10:47 am |   | Permalink |  Print This Post |

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Markets moved exactly as we expected as per our previous post - the candle chart was identical (one long red candle Thursday). Expect today to be an up day, but dont get over-excited, upside is capped at 6700 +/-. Ideally we would like the futures to be in the red before moving up. Also, an up day would give us abit more height to fall from starting Monday. Unemployment figures will be out tonight - news are already reporting numbers to be “the worst since the Great Depression”. Anything is possible, even bad news can be intepreted positively (Recall the “good news” when RBS reported better than expected losses of 27.7 billion dollars?). Our plan tonight would be to take small long positions on weakness; preferably for Dow to be in the red before we take a position. If you are risk adverse, stay clear. 12 - 13 March is our forecast for a turning point, and a target of 6400 > x > 6250. We maintain our order to long at $5/point at 6380 and $10/point at 6350 and $20/point at 6250. Stop losses at 6180.