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, March 20, 2011

Lower prices still on the cards

At this stage, in my opinion, the All Ords will go lower - perhaps significantly. The chart below which comes from the Advanced Get software, shows a 'PTI' of 65. When this number is above 35 it says the move down is playing out as it should and the correction (of the past couple of days) is normal for the move. This means that soon the down move should resume. The other thing is that if the move from the high was only a corrrection then I would have liked it to stop at the wave 4 of the previous move up - around 4665. I continue to think the likely outcome is that we will retest the 2010 lows of around 4200 on the All Ords although we may not reach that until May. A break below 4500 will increase the likelihood that the 4200 level is the minimum target, so I am not rushing out to re-enter the market. A word of caution - markets are dynamic and can change very quickly. A couple more strong up days could change everything and turn this market positive again. Will keep you posted.
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