Financial Markets Technical Analysis- Yorba TV
Stock-Markets / Financial Markets Dec 02, 2008 - 12:18 PM
Today’s Yorba TV Program may be entitled “Final Landing” since the indexes have now given us a potential map of its intentions. Last week I put out a video on YouTube describing my current views on the BKX. It drew a lot of commentary and gave me a reason to re-evaluate the chart patterns to get the “best fit.” The red horizontal line is the neckline of an earlier head and shoulders pattern that had a target of 33 in the BKX.
That target was met on November 21. In the process, we may have finished the right shoulder of a down-sloping head and shoulders pattern. This may be more valid than the earlier H&S pattern that I had illustrated and has an equally bearish outlook. Yesterday the BKX crossed the down-sloping neckline and this morning has been struggling in that area. Should it stay below, we may see the new H&S pattern activated with a mminimum target of 10.00.
The SPX expanding triangle is also related to the head and shoulders pattern nested on the loweer trendline. As of this morning, it has not confirmed the pattern, but should that happen in the next few days, we may see a minimum downside target of 631 in the next few weeks.
The NDX also carries the same message. Once it breaks through the lower trendline/neckline, it favors a downside target of 836.
The Industrials also show the same pattern. Should the trendline/neckline get broken at 7760, w should see a 92% probability of completion to 6280.
In summary, we are at an important inflection point. The BKX is ahead of the other indexes, signalling weakness and yet another decline. Should the other indexes follow, we may be seeing the final descent into the 4-year low that is now 26 months overdue.
Last Tuesday I suggested that Gold was very near its overhead resistance. That proved correct and we now see the decline beginning. This morning it has risen in a countertrend bounce, but should continue its descent in very short order.
Last week I suggested that oil could rally, but it had a very strong trend channel that might impede the rally potential. That observation proved correct and it appears that it, too has resumed its downtrend. You can see that we have taken out the minimum target for oil already, so I will be monitoring its decline to see how close it gets to our next set of targets.
See you on TV! www.yorba.tv
Tony
New IPTV program going strong.
This week's show on www.yorba.tv is packed with information about the direction of the markets. I'm on every Tuesday at 4:00 pm EDT . You can find the archives of my latest programs by clicking here .
Please make an appointment to discuss our investment strategies by calling Claire or Tony at (517) 699-1554, ext 10 or 11. Or e-mail us at tpi@thepracticalinvestor.com .
Anthony M. Cherniawski,
President and CIO
http://www.thepracticalinvestor.com
As a State Registered Investment Advisor, The Practical Investor (TPI) manages private client investment portfolios using a proprietary investment strategy created by Chief Investment Officer Tony Cherniawski. Throughout 2000-01, when many investors felt the pain of double digit market losses, TPI successfully navigated the choppy investment waters, creating a profit for our private investment clients. With a focus on preserving assets and capitalizing on opportunities, TPI clients benefited greatly from the TPI strategies, allowing them to stay on track with their life goals
Disclaimer: The content in this article is written for educational and informational purposes only. There is no offer or recommendation to buy or sell any security and no information contained here should be interpreted or construed as investment advice. Do you own due diligence as the information in this article is the opinion of Anthony M. Cherniawski and subject to change without notice.
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