Does technical analysis work? Opinions differ. After all, the markets are randomly changed; we saw this announcement on Friday of the Securities Authority for Goldman Sachs. On the other hand I know that technical analysis works for me!
Previous review I published it full reasons why the market will have difficulty at the level of 1200 to 1210 points on the S & P 500 and why you should start selling as soon as the peak arrival and even opened Shorties. So, does technical analysis work? For me it works, for others not. The idea is that technical analysis is to predict changes in the stock market no matter the reason (!) Why the market rises or falls. The idea is pretty simple; the index reaches a high point – a record. Reason even the most minimal leads decline in prices. Those are pending merchants that will cause them to sell. When posting a message on the stock market is negative, then the market falls because everyone recognized and created a new record. That’s how it works …
Macro Economic Analysis
Many macro data released last week were positive economics and markets. Excellent inflation data, have excellent data, excellent real estate data, only subject to claims for unemployment benefit a bit spoiled the party with the macro data but the total outstanding data.
Next week will be published some data when the data center is real estate inflation data vendor information.
Stock Market Analysis
The stock market rose last week quickly towards resistance levels. Market increases were unexpected positive reasons – Intel’s excellent report. Macro data pushed the indices to new highs spring report of Intel and the Nasdaq index to new highs chip. The trend in the stock market was broken on Friday when a message came out of the SEC investment house Goldman Sachs is accused of selling bonds backed by bond evasion data. Immediately after the announcement the stock fell over 10% and dragged the financial sector along with it. Authority’s message was right on time when expiration begins to click on the authors. The objections were technical indices and the process of profit.
Previous review I mentioned the U.S. stock market as an engine of global capital markets. On Friday, the U.S. stock market shut down the engine another armchair indices will have to lead the world. If the stock will not take the lead, has forecast more deeply in order to correct minor. However, all indices no exception still keep rising minor trend. Only a minor trend of breaking the stock market put a more serious decline as traders are realizing profits and open Shorties. See Appendix
Bond Market Analysis
Bond market enjoyed the stock market declines government bond prices rose on Friday.
AH price is still shuffling in the range of 5%. It can work in the shuffle, support and selling resistance in Kenya, just pretty middle of the range price shuffle.
Analysis of foreign exchange forward market
Futures market, a negative trend. Nasdaq 100 contract for June is neutral.
Expiration date was in early market trading options calm and message changed the rules. The market is usually inviting suckers who enter as the rising trend then “suddenly” begin to repair panic of buyers come from the last. This time there was no need, the message is dropped the indices and options sound out of the money erased with no value as expected and in accordance with the previous forecast From Review.
Work domain next month by the options market is 1225 to 1150 points on SPX.
The euro, the currency interesting of the year, rising trend again reversed signaling minor in Kenya – 1.35 Euros / dollars. Rate could lead to rising European indices to rise and take the lead from the U.S.
Oil continues to wade through a wide range signaling weakness. Gold continues to sensitive data shuffling long macro between $ 1,115 to $ 1,107.
SummaryU.S. market shows weakness against major reason of the SEC. Metrics of the U.S. able to continue to lose altitude and another stock exchange may save the fragile situation in the markets.
Breaking the trend of minor significance more serious correction measures, ending trend, profit for the opening of scratching.
You can protect yourself by government bonds sold options out of the money.
We must prepare for correction of the stock market falls a few percent at the secondary trend l
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