Either way, for the Dow Jones Industrial Average, the subsequent few days or a long time forward or maybe the full extent of the upcoming ten years is going to be discouraging for investors, since all the sectors proceed on its roller-coaster journey to nowhere. And granted the correlation we see between US markets and the entire world markets, the coming period of time is likely to bee extremely irritating in additional locations other than just the US. But savvy investors with diversified and well-developed portfolios will not only journey out the storm, they are likely to obtain investment decisions and good results by staying away from the buy and hold, swing trading is the only way to get you through these times, as long as you aren’t greedy. There’ll be profitable companies and trading techniques in even the worst bear markets. An emphasis on absolute returns and choice expense portfolios will probably be rewarded. Hang on and put together a portfolio that will be there for you when the exciting moments come down the pipe.
Look at the two charts below, there are very slight differences but huge similarities.
click on the chart to see…Russell 2000 July 6, 2012 support resistance
Like I said earlier, slight differences but huge similarities. I’ve been saying for some time that all the world markets are “all one market”
Some index’s move a little faster, some move a little slower at times but the pattern is always the same. I’ve talked to buddies of mine who say this is the toughest market they’ve traded in. I’ve listened to some of the old timers who have seen more in there life time than I might ever see. They say “this is the toughest market they’ve ever traded in”.
The Dow Jones Industrial Average…The Russell 2000…The FTSE all look the same. I could have put more charts on here but you get the picture.
There is only one reason why this is the toughest market they’ve ever traded in, that reason is, the markets are in a corrective wave. I’ve stated before that I think the equity markets are going to go the same way as the bond market did in the 90′s, flat, then collapse. The forecast here on Swing Trading Forecast has been a pivot point or trend change on or around July 17th. Let’s look at another chart.
click here to see…FTSE July 6, 2012, support resistance
It’s all one market, world wide.
The first thing you would say when you look at all three charts above is “wow, we’re above short term resistance” the markets are on their way. Well, not so fast.
Anything can happen, I have to make that clear right now.
But the patterns are almost always true to trade. Usually around that 80% range, as long as you don’t get greedy and have a system.
The channels you see in the charts above are bearish and that’s the way I’m going to play it. Are the markets going to break down on July 17th or are they going to go gang busters to the upside? It’s anyone’s guess really but the patterns tell the story and my Swing Trading Forecast Model dictates when the trend changes occur and that goes for the Dow Jones Industrial Average too.
Make sure you subscribe to this blog because in the near future I hope to be displaying individual stocks that I trade. I’am not a licensed advisor so I just want to make sure that all of the liability issues are out of the way first. I’ve been asked by some readers to write about or display stocks that I trade, so I’ll see what I can do for you, my valuable reader.
So remember don’t get greedy, take profits when the crowd get’s really excited and buy when the crowd gets scared…think for yourself!!!!
that goes for the Dow Jones Industrial Average too.
