Monday, July 02, 2007

Charts Of Interest

Above is a chart of the Dow Jones World Stock Index. As you can see the index is breaking out of a symmetrical triangle. Is this a sign that the world markets are about to rally?

Over the past few weeks copper has been showing relative strength compared to gold, silver, platinum and palladium. My guess is that copper rallies to test the year high.

The Japanese Yen Is testing resistance.

For about a year the Shanghai index has been outperforming FXI going into late May. In the lower pane is a ratio line. When this line is trending higher it means that Shanghai is stronger than FXI. This ratio line topped out on May 28th which tells me money is moving into FXI and leaving Shanghai.


dankir said...

Hi Kevin

I just checked out your S&P prediction chart on stockcharts based on the ''secret spread''. How confident are you in this indicator and do you use it for Emini swing position trading? Thanks for your great commentary throughout this blog! Regards from Munich, Daniel

Kevin said...

I actually disclosed what the spread was on this blog..the spread is bonds leading the S&P.

I am confident in the spread as a forecasting tool but you need to combine it with other things..For example...if the spread says lower, I will not short the S&P just because the spread says so, but if I get a technical sell signal with another indicator like a moving average crossover, then I would get short.

Roberto said...

how can I buy the copper index you've shown??

Kevin said...

You can't...the only way I know of to particpate in copper is to trade either copper stocks or copper futures...


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