DOW Jones is in a very critical stage at the moment, we are in a trading range, where it was initinally an uptrend line, but went to the weekly low at 10700. There are 2 possible scenario at this moment, a breakout of the range can bring us to a 117000-12000 level where we can have a chance to sell, or the doomsday scenario of breaking down into the 10700 support, and has a target downside of 9700.
At this point in time, Asia market is very very weak and far away from the GDP its generating, Asia should be the White Knight here, and defend that even a Greece Default happens, Asia Market will bring the global economy up, but now, what happens is that, Asia is even more scared by the European Debts.
Medium term: DOWNTREND
Short Term: Trade the range (But I prefer not to trade, very risky chance to Win a trade, just wait for a higher ground to sell more stakes)
On the weekly charts, we are illustrating an Elliot Wave Theory, that states and projects the target downside and rally. Now, its currently in the possible Wave 4 of Primary Bear market A, or a Primary Bear Market Rally B. I hope its the PRimary Bear Market Rally B, so I can get out more of this market, before we see new lows.
Summary: Any count, either Choice A or Choice B, suggest that there is a new LOW coming soon.
HK Market... My Favorite Market, but is Outperforming and making a lot of people lose money. This is should be one of the "safest investment", since GDP here is so good, and Earnings of the companies has a very low P/E ratio of 8.0, this is a very cheap market, but is still on a very steep downtrend line.
China Market is also one of the Outperforming markets, closer to the 2007 lows compared to any other Market in the world (Except problematic European Countries). With a Country that reaches 10% GDP, how come their market is as stagnant as Europe? I know they have 30% of their wealth invested in Greece/Europe. So maybe that's one of the reason that China Equity Market is unhealthy.
London... The Trading capital of Europe. After we confirmed last week that Germany enters recession with the very important breakdown on its critical support. Looks like London is going to follow..
We are projecting that a possible VERY BIG Head and shoulder pattern is forming, and has a downside target of 3500 (A Double Dip Recession compared to 2007).
With the projection, Charts dont tell the truth, but does not tell lies either. This FTSE London Chart suggest/gives a hint that a Greece/European Default is very highly probable.
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