I am not a financial adviser so you should not take any part of this blog as being financial advice. Observing and interpreting charts is a hobby and so is this blog. The information in this blog is just my opinion, it may not reflect reality. Stock market investing is risky - you can lose all, or potentially more than all of your money given certain market conditions. Not only can you lose a lot of money buying shares, you can also lose a lot of potential profits by selling shares at the wrong time. So please do not buy or sell shares because of information in this blog. Whether you buy or sell shares is your decision as is the decision when to buy and sell. Do not risk any money you cannot afford to lose. Do not risk any money if you do not fully know and understand what you are doing.

Sunday, June 27, 2010

Another perspective

Here's another perspective of the All Ords. This chart comes from the Advanced Get software. There are a couple of heartening pointers from this chart. First is the number "26 PTI" which appears on the far right side of the chart in the middle of the page. A PTI under 36 indicates a "failed wave 5". In short this means that the move down which started this past week is likely to end at or above the low made  in May. Secondly, the fact that the rally from the May low ran up above the "red tram tracks" (which you will find above the blue and green tram tracks) increases the probability that the decline from the June high will not be long lasting. Having said that, anything is always possible including the market falling well under 4,000.

Click on chart to enlarge
Also, while the above chart is interesting, the best guide is always the XAO Indicator. Here's the chart showing the XAO Indicator for 25 June 2010.
Click on chart 
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