Sunday, September 16, 2007

Charts Of Interest



As you can see in the above chart, crude oil is not far from testing its all time high which was made last year.



FXI continues to outperform many of the other world markets.




Above is a chart of the dow jones world stock index. As you can see the trend is up and the index held the bottom of the channel. Notice how this decline is almost identical to the previous decline in terms of time (5 weeks).

The stochastics in the lower pane have turned up from an oversold condition indicating a buy. Over the last few years, every time this oscillator reached the oversold level and turned back up, that identified a major buying opportunity and the market rallied.

I am bullish on stocks and the above chart is only one of my reasons for being bullish.

5 comments:

JBetz said...

Kevin

Pleased to see you're back.

One comment on the DJW chart - based on my understanding of the rules for drawing an advancing trendline (based on Trader Vic) is that the line should touch the reactional low prior to the highest point in the trend. This would mean that the trendline should touch the Mar 06 bottom and the current price action would result in a break of this trendline. If the index does continue to make a new high, then your trendline would would be correct.

Of course TA is subjective in nature, but wanted to point that out but also try to understand your logic.

JB

Aurelien said...

Welcome back Kevin,

Glad to see you posting again!

JJ said...

love to see your thoughts on fixed income as well....

Kevin said...

Hi Jbetz,

I didn't draw a trendline...What you see is a channel line which is different than a trendline.

Bob said...

Kevin, Glad your back. Missed your opinions. I noticed last week, your second week DIA worked like a charm. thanks Bob

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