Nissan CEO's arrest takes toll .... Two Simple Systems

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Derek  20 Nov 2018

Good Morning,

The arrest of Nissan's CEO took its toll on markets and all indices are correcting around the world.

I showed yesterday that the NASDAQ could not break the EMA8 line and now the correction is continuing. Falling tops in FrontRunner is also a continuation of the correction.

Technology shares were hit the hardest and another round of production cost for Apple's iPhone added to it's correction. Another reminder that while a share is in a strong trend, positive or negative, all cyclic signals must be ignored.

Boeing has now corrected to my strong support. The downward momentum is so strong that it easily can be broken.

JSE Technical:
I want to show my two simple systems today. The first one you must know by now if you have been following the market reviews. I want a FrontRunner break, with MACD bar changing colour and the trend line and EMA8 lines get broken. When all this happens in overbought or oversold territory as shown by heatmaps, even better.

It is seldom that they all happen on the same day, but it did so for Anglo. Preferably it should not happen more than 2 to 3 days apart.

The second system is even more simple. The Heikin Ashi chart must change colour and break its EMA8 line. I show Anglo again. The Heikin Ashi candle did change colour, but did not break its EMA8 line yet. I marked all the previous positions where this happened on the chart.

Now is that not a very simple effective system? It reminds me again of the KISS principle: "Keep it simple stupid". Now you must be wondering how does the Heikin Ashi chart look like for Apple and Boeing? Lets show Boeing and notice that it is much easier to draw trend lines on this chart as it is much smoother.

Any queries or requests can be send to

Enjoy your day.
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