Dow Jones Movement Forecast

VIX – VOLATILIY CHART

A lot of fans from Stocktwits message me to ask whether if the DOW JONES is up or down next week? I wrote on the forecast on the Dow Jones and advise that Dow is strong and will continue to be stronger till end of the Dec 2014. Given the recent news on Friday that BOE is already executing Assets Buying Program, we can expect market was given a further boost. From the above VIX chart, we can see that RSI is currently 31.04. we can expect stock to go OVERBOUGHT. (ie VIX to go Oversold)

VIX is currently at support and if RSI goes oversold. We will look at the candle and strength behind. The Strategy will be to go Short on Stocks if the bar goes below EMA 10.  Include this in your trading Strategy and will see a big change in your account $$ numbers. Remember this is on MACRO view. Thereafter you should look at which is the sectors that is the strongest, follow why which company is the strongest.

VIX (MACRO View) -> Sector -> company ==è to give max gain.

Will DOW Jones Crash? If YES, When??

Short Term

NYSE Composite Index shows that in the Short Term we are going higher. We can see that NYMO has bounce of O and is heading towards 75. Volume increase as price is going higher. This is accompanied with the increase in body of the candle. We can say there are strength behind.

Short Term look shows that there is no divergence and between NYMO and NYA. There are constant buying and we should take note once NYMO reaches 50 to 75. There may be noises behind and creates more dip for buying opportunity. This is the SANTA CLAUS RALLY that I am referring to.

Long Term

The NYSI and NYA is showing chart for long term view. I will use this to predict Crashes. I remember the days in 2007-2008 crash. There are so many optimism on the economy. However NYA and NYSI shows otherwise. It is showing that SM are offloading months before the big crash. I am glad that during that time I am able to spot the offload and get off with small profit else I will only harbor on to hope and all my hard earn money will donate to Smart Money’s pocket.

Above shows that Long Term view there is nothing abnormal behind the scene. The NYA chart shows that the bars increase with high volume. NYSI correspond to the NYA movement. Thus Long Term still bullish at the moment.

Do not listen to Media , Hedge Fund Manager etc saying that Dow Jones are crashing. They work hand in hand to create fear and volatility to the market. This is what I called Trading Psychology. I will like to see the response from my readers if they enjoy my article and if they like me to cover that topic.

For the meantime,

Good Luck, Happy Reading and Best of Luck for Monday Trading.

From SGWiseInvestors