Outlook for week of January 12, 2015

Outlook for week of January 12, 2015

US and Japanese stock indexes remain weak bullish. FTSE100 stays in
bearish mode and DAX weak bullish.

Bonds continue bull run, now up almost 23% in 50 weeks.

Gold is trying to rally. It needs a weekly close above $1237.50 to get into
bullish mode.

$EURUSD continues to weaken, with MoM now at very depressed -8.

Oil remains fully bearish. MoM has reached -10, which is extremely rare
on a weekly chart. It happens about once in 50 years on any given
market. We patiently wait for MoM to turn up.
Weekly Reversal Levels
© LunaticTrader.com


Daily MoM turning up for Nasdaq is a first tentative indication that the
recent pullback may be over. MoM remains down for $&P 500 and Nikkei

MoM is also turning up for DAX and FTSE100 gives a speculative buy
signal.

Bonds have reached our Top target at 130.65. MoM has reached a very
optimistic +9, which means we better be careful for a sudden pullback
here.

Gold in rally mode. First Top targets are 1244 and 1274 (see page 5).

EURUSD remains very weak. Waiting for MoM to turn back up.

Oil has not mustered any rally and MoM has turned back down. This is a
continuing decline until we see MoM turn up again. This is a long wait on
Oil, but we will get a rally eventually. The question is when.
Daily Reversal Levels


Buy signal for Australia and Hong Kong.

Sell signal for MSCI world index.

Can take partial profits in Dow Uitlities.

MoM has reached the maximum +10 for
China. Up 54% in 24 weeks. We called for
this move on our blog in June: Buy China

Comment: Not a bad week after all. But MoM
remains down in a lot of markets and that
continues to be a concern. On the bright side
we have Australia and Hong Kong getting
into the bullish camp, and the Asia-Pacific
zone in general is displaying more strength
than the rest of the world.
Weekly Reversal Levels for World markets


Buy signal for MRK, which is a “bounce right
back” situation as it gave a sell signal last
week. Usually it is very bullish when you see
this.

Weak buy signal for KO

Partial profits can be taken in DD and GS

22 stocks bullish, up from 20 last week. Above
20 = healthy bull market. See article:
Keeping an eye on the Dow stocks

Comment: Improvement this week with now 22
stocks bullish, giving the Dow some breathing
room going forward. It is a healthy bull market
until proven otherwise. That's the good thing
about the weekly levels, they are quite steady
and do not listen to the day to day news and
noise. When a bear market starts, and that will
happen sooner or later, then we will see the
number of bullish stocks drop below 15. With
reversal levels we just go with the flow.
Weekly Reversal Levels for 30 Dow stocks
Note: the weekly reversal levels for over 1000
stocks and ETF can be picked up for free
on my blog every weekend
The daily reversal levels for over 1000 stocks
and ETF are available for a few $ on Scutify
every day: click here


New Top1 target for Nikkei at 18285

New Top2 target for Bonds TLT at 135.72

EURUSD is at its Bottom 1 target. If this
level doesn't hold then we will have to
consider the weekly Bottom target at 1.14

Stock indexes are now pulling back after
testing their Top1 targets.

Crude Oil is right at its weekly Bottom target
at $53 We may get a rebound from this
level.
.
Target zones
Legend
* = new or updated target
(W) = major weekly target
Note: we use a +/-1% zone around these targets.
The target zones are a by-product of the reversal level
calculations.
When a target is reached the market will typically react and turn
back from it. On the second or third attempt the target finally gets
broken and then the next target comes into play.
So these target zones can be used as price objectives for taking
profits or for entering the market after a significant sell-off. They
can be seen as a kind of pivot points.
When MoM indicator reverses right near a target zone it is very
likely that the market has reached a temporary peak (or bottom).
For more details about the target zones, see:
http://lunatictrader.wordpress.com/2013/08/20/key-target-levels/

More details about the reversal levels and how to use them in your trading can
be found here: http://lunatictrader.wordpress.com/key-reversal-levels/

Blog: http://LunaticTrader.Wordpress.com

On Twitter: http://twitter.com/lunatictrader1

On Scutify: http://www.scutify.com/profiles/scutifier.aspx?q=LunaticTrader

On Stocktwits: http://stocktwits.com/LunaticTrader
For daily reversal levels, regular market commentary or questions
you are welcome to follow or contact us here:
Disclaimer
Investing in stocks, forex or commodities is risky. No guarantee can be given that the opinions or predictions given in this presentation will be correct.
LunaticTrader cannot in any way be responsible for eventual losses you may incur if you trade based on the given information.
Simulated trading programs in general are subject to the fact that they are designed with the benefit of hindsight.
No representation is being made that any account will or is likely to achieve profits or losses similar to those shown.
Trade at your own risk and responsibility.
Note: the weekly reversal levels for over 1000 stocks and ETF can be picked
up for free on my blog every weekend
The daily reversal levels for over 1000 stocks and ETF are available for a few $
on Scutify every day: click here

Outlook for week of January 12, 2015

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Outlook for week of January 12, 2015