Gold is on the verge of breakout

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/04/20180413-GLD.png” description=”Gold has been forming a big bottom since the 2012 crash. The formation of the bottom began in 2013, and it’s pattern is a gigantic head-shoulders bottom. If you just look at the the chart from 2016 to today, its pattern is a triangle in the bottom level. Typically,…

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Small W bottom in Dow Jones

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/04/20180406-DOW.png” description=”Dow Jones had a small W-bottom, and it bounced back. From the calculations, the first target of the bounce is 23,632, and the second target is 24,260. However, the size of the current head is much larger than this W-bottom, so the second target is not likely reachable…

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Critical point

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/04/20180403-SP500.png” description=”The weekly chart of S&P 500 already showed a flag, precisely a bear flag. While the market is moving down, it encounters a strong support around 2,550 (+/-25). However, we keep seeing lower lows and lower highs, so the bearish trend will remain and this support cannot sustain…

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Market will pause a bit

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/03/20180323-SP500.png” description=”S&P 500 will hit a support area, which is marked as a rectangle in the S&P 500 chart. Look like the bear will take a break. The market may bounce back, or stay in the support area to have a sideways walk.” source=”http://www.economicsignature.com/wp-content/uploads/2018/03/20180323-SP500.png”  title=”Market will pause a bit”]…

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M head in S&P 500

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/03/20180319-SP500.png” description=” The chart explains itself. S&P 500 forms an M head. Further, the most recent top forms an isolated portion, which signals an island reversal. When we connect the lows in February and in early March, a neck line can be drawn. If S&P 500 cannot stand above…

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Short-term bullish?

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/03/20180309-SP500.png” description=”S&P 500 has a short-term resistance at 2,810 (due to a small gap) and a long-term resistance at 2,850 (due to another large gap). Today, the rally leaves another gap between 2,741 and 2,751 as a support. If the market will keep upping, it may slide down to close…

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Learn from Germany’s DAX index

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/03/20180302-Germany-DAX.png” description=”DAX reached its peak on January 23, 2018, one week earlier than Dow Jones index. Then it dipped as a falling knife. It created two gaps, which haven’t been filled yet. When it broke down the 12,850 neck line, the southern run accelerated. After it bounced back to…

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S&P500 short-term support and resistance

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180228-SP500.png” description=”From mid-December 2017 to January 31, 2018, there existed divergence between price and volume (see the yellow line), suggesting a reversal from the top. During the following 1-3 days, the short-term support should sit at the low 2,697 of the previous 3 days; if the price breaks down,…

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Paired investment

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180226-DOWvsGLD.png” description=”Pared investment: Dow vs. Gold. When stock markets plunge, the money previously invested in stocks would like to park at a safer harbor, such as gold. Therefore, the two curves show negative correlation.” source=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180226-DOWvsGLD.png” title=”Pared investment”]   There are many types of markets, such as stocks, bonds, currencies,…

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Symmetric volumes in Dow Jones

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180222-symmetric-volumes.png” description=”In March 2009 when the market reached its lowest after the 2008 financial tsunami, there emerged a largest volume. Since 2017 till now, almost equal sized large volumes have revived again. The symmetric volumes are by no means accidental. In fact, the main driving forces (i.e., institutional traders)…

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Gold or Go?

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180219-GLD-vs-SPY.png” description=”The blue circles show that, when the stock market (SPY) tanked in the 2008 financial crisis, the price of gold (GLD) surged dramatically. The surge remained till SPY was ready to break out the previous high during 2013 – 2014 (the yellow circles in the figure). Then, GLD…

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Escape from GE trade

[wp_lightbox_prettyPhoto_image link=“http://www.economicsignature.com/wp-content/uploads/2018/02/20180218-GE-weekly.png” description=”In mid-November 2015, there were large volumes, as shown in the daily chart and weekly chart.  However, such large volumes did not drive a price surge. Shortly after, GE experienced a correction. In early 2016, GE announced operating loss and moving its headquarter from Connecticut to Massachusetts. Since…

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Dow will see correction down to 22,050

[wp_lightbox_prettyPhoto_image link=”http://www.economicsignature.com/wp-content/uploads/2018/02/20180216.png” description=”The resistant band around 22,616 of Dow for the following months has been established on Jan 28, 2018, suggested by the gap on Jan 30, 2018. Although the market is bouncing back recently, it may test around the resistance and sell off again. The following support band we…

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