fundamentally, the Eurozone is a mess. We know that but … who cares as the DAX has exploded.
today we hit the 1.68179 and 1.8877 (musical notes based on the equal octave scale of music) extension targets and it’s selling off nicely.
not seeing any bearish divergence on Monthly, Weekly, Daily and…
also want us to look at the ratio analysis of the DAX/SPX and we can see it’s testing – WITH THRUST – a 30 year resistance line of relative strength.
THIS ONE AREA WILL TELL US IF THE BAND PLAYS ON – OR NOT W/ THE GERMAN DAX. When I look at the monthly it looks like it is JUST STARTING to take off parabolically. Be patient w/ this one and enjoy the show ….
EWG … where’s the ETF? it hasn’t budged w/ this parabolic move in the DAX ….?
It’s held for now so be patient and look/ with “signal reversal candles” to go long or short!
this is going to be quite a show!
RELATIVE STRENGTH of the DAX vs SPX. NOTE IT’s TESTING a 30 year resistance level …
Below is the post that I did on the German Dax and the fact that so many PATTERNS were coming into play. I spent this morning going thru this post and I just felt the need to post it again. Why?
Well, as you know I have NEVER taken an economics or business course. I know NOTHING that a CFA or MBA knows. But I do KNOW PATTERNS based on musical theory, fibonacci, sacred geometry, etc. So Germany – one could argue a most important part of the EURO ZONE – and particularly the DAX was, simply completing patterns based on all time lows and butterfly patterns (see below) and I’ll be darn they patterns held.
Knowing NOTHING about global macro economics but a lot about GLOBAL MACRO ADVANCED PATTERN RECOGNITION I simply believed these levels to be very important. They have been …
So, someone please explain to me why the entire world took the DAX up to the pattern level and, well, the shit hit the fan – right at our level. While your at it – take a look at Silver at 14, GPRO at 98, the Chinese Yuan PATTERN, etc. etc. The PATTERNS are amazing because they are an edge and let you know – with a good deal of accuracy where you are wrong! Enjoy the chart
One last … how about the AUDJPY? Amazing …
Voo Doo principle: a pattern appeared and at the PRECISE level the BUYING STOPPED and the SELLING took over … believe it? or not?
Here’s what I do know:
ANYTHING can and will happen …
YOU DO NOT NEED TO KNOW WHAT IS GOING TO HAPPEN NEXT TO MAKE MONEY
There is a random distribution between wins and losses for any given set of variables that define an edge … (MY edge is PATTERN RECOGNITION)
An edge is nothing more than an indication of a higher probability of one thing happening over another …
EVERY MOMENT IN THE MARKET IS UNIQUE
Thank you Mark Douglas for Trading in the Zone.
Here’s what I SEE w/ regards to the German Dax – PATTERNS are complete across long time frames. IF (the big IF) these patterns work (they sure seem to be) THEN it is very bearish.
GERMAN DAX Monthly AB=CD from all time how to all time high – COMPLETE
Butterfly #1 on German Dax
butterfly pattern MONTHLY GERMAN DAX number 2
EWG ETF for German Dax
and, here’s the ETF w/ the “SEE PATTERN APPROACHING” back in December 2013
the SELL PATTERN approaching
CLIFF NOTES: as I’ve said for the past 6 months (it hasn’t even been a year blogging!) this is a PATTERN RECOGNITION blog. And, guess what … we have ANOTHER PATTERN from an all time low. Here’s the pattern …
you know what, that theory was proven … its’ fact folks, scientific fact. done … no more discussion needed.
so if the physical manifestation of a butterfly can make typhoons happen how powerful are thoughts? thoughts ARE things and EVERYTHING is a VIBRATION so … what IF, just what IF, the PATTERN on the German Dax from the all time low is going to WORK? Somewhere out there for whatever reason the “butterfly flapped it’s wings at the all time low” and set the course for the creation of this wave that has developed. The wave that has developed is a PATTERN and that SELL PATTERN or SELL wave is either going to work or “not develop as forecasted” (willi willi from my flying days)
see the POINT A .. that is where the butterfly flapped it’s wings …energy, vibration, waves, etc. The PATTERN is complete
so, I think (I really don’t know fundamentals or any of that crap) that Germany is important to the Eurozone. I KNOW they have completed a MAJOR sell pattern and basically, they have rallied up like the last time. So, is it time for it to start back down? We’ll see .. perhaps the butterfly flapped it’s wings a lot harder and things explodes to the upside — I do know it’s very important.
rock on, ok?
so, what’s the geometry telling us? well I like to use the first impulse move down (bold blue arrow) to draw the simple squares. You can see where teh key trend line REALLY is so watch closely the two areas labeled.
Voo Doo principle: a pattern appeared and at the PRECISE level the BUYING STOPPED and the SELLING took over … believe it? or not?
Here’s what I do know:
ANYTHING can and will happen …
YOU DO NOT NEED TO KNOW WHAT IS GOING TO HAPPEN NEXT TO MAKE MONEY
There is a random distribution between wins and losses for any given set of variables that define an edge … (MY edge is PATTERN RECOGNITION)
An edge is nothing more than an indication of a higher probability of one thing happening over another …
EVERY MOMENT IN THE MARKET IS UNIQUE
Thank you Mark Douglas for Trading in the Zone.
Here’s what I SEE w/ regards to the German Dax – PATTERNS are complete across long time frames. IF (the big IF) these patterns work (they sure seem to be) THEN it is very bearish.
GERMAN DAX Monthly AB=CD from all time how to all time high – COMPLETE
Butterfly #1 on German Dax
butterfly pattern MONTHLY GERMAN DAX number 2
EWG ETF for German Dax
and, here’s the ETF w/ the “SEE PATTERN APPROACHING” back in December 2013
the SELL PATTERN approaching
CLIFF NOTES: as I’ve said for the past 6 months (it hasn’t even been a year blogging!) this is a PATTERN RECOGNITION blog. And, guess what … we have ANOTHER PATTERN from an all time low. Here’s the pattern …
cliff notes: not one new high across the world. Malaysia has given it a good try, but has not “on close” exceeded it’s 2007 high. the song remains the same … http://www.youtube.com/watch?v=CcYZlRWWxO0
the link above is where you’ll find our around the world cruises since August. this post is an update …what do we see?
nothing has changed, significantly.
none of the international indices have made new highs like the US equity markets …
patterns have provided resistance, BUT not necessarily overt sell signals
for the BEARS we are concerned about the SIZE and STRENGTH of the past two weeks of candles. the only country that doesn’t have this feel, as we see the world (literally) is Japan. The European ETF’s show strength in the bullish weekly engulfing patterns.
for the BULLS this is a good sign HOWEVER I’ve enclosed a chart of the DJIA that shows a very strong move UP from the low 9-10 days ago but a VERY significant lack of VOLUME. the VOLUME was BIG going down and SMALL going up (in fact it decreased) hence I find this to be overtly bearish. A very nice 5 waves down can be seen in most of all the indices except the NASDAQ but that is also completing a 1) 5 point reverse wave, 2) 3 drives to a top and 3) all of em’ are smacking into the .786 retracement from 2000. If the US Market starts down again in a “daily C wave” or “continuation 3” we find it hard to believe that the rest of the world won’t also …
so, we believe this week will be pivotal …
last, believe it or not, the Dollar is going to be Gorilla that get’s this thing truly rocking and rolling ….one target was hit and held late Friday afternoon.
