Cyclic signals are not sell signals until confirmed .... TIP

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Derek  16 Jan 2018

Morning,

International:
I got so irritated yesterday when the financial commentator, and she is a broker too, stated how the US market opened and moved, and that while the market was actually closed for a holliday. All "bull" that was broadcasted.

I want to show the FTSE this morning that is in a strong trend. You might recall that I mentioned previously that all cyclic indicators must be ignored when a share, or index, is in a strong trend. The cyclic indicators give a signal every time a peak is made in the overbought territory. BUT the trend is much stronger. Before the trend is not broken, ignore these signals. Notice the trend on FrontRunner too (horisontal). That needs to be broken too.



Wynn Resorts broke its negative trend line. Notice how previous resistance became support. The Data drum with exclamation in the middle top of chart is only a warning that there was no data yesterday. If data is not updated, this will appear on all charts to warn you that the data is old.



JSE Technical:
You might recall when I showed the double bottom on support for Billiton? The trend has taken us now into overbought territory and FrontRunner broke down. The trend has not been broken yet, lets see what happens today.



Banks are still struggling to turn, but two financial shares did well. Old Mutual is making new highs and broke top resistance. I show Sanlam that bounced on support to be one of the strongest movers of the day.



TIP of the day:
"The trend is your friend" and remains the strongest signal. However, when the market goes into a sideways move, there is no trend and then cyclic signals are 95% accurate. The only way I found to sort this out is to draw the trend, support and resistance lines and then run the trendline break feature in TradeFX to catch the breaks. If you do not have trend lines drawn, then use the EMA8 line as a trend line and breaks of this line is also highlighted in TradeFX.

You must have a great day

PS. I see nothing exciting in the Cryptocurrencies.

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