by Gtrader
Sept 9,2011
The center of the elliptical time frame is on Nov 1 as the square of the previous peak of Aug 2 peak which the daily cycle chart is started counting from and projected into the future. Significant cycle days are noted by the vertical lines. While the horizontal lines are significant price levels based on common fabonacci price retracements levels. The angles ratio (1X1, 2X1, 3X1 ....etc ) are projection of prior highs or low that project the range of vibration of a trend or general direction of the market.
Notable dates
Sept 8-9= Advances in the Index ( selling on some mining stocks)
Sept 12 = Blue chip companies may start to move and breakout ( watch out for banking, property and services sector).
Sept 19-21 - Resistance days ( sellers may dominate the market- narrowing gap between open& close)
- this is also a good opportunity to buy some mining stocks again. which is poised to peak on Oct 13- Nov 15. But choose wisely.
Sept 21-26 = Further Decline in the index (most probably driven by a news of the Euro debt crisis particularly the Greece national debt default and eventually Italy and Spain as well). A slide in confidence in the global financial banking system.
Sept 26- 30 = Short pullback.
Oct 13-Nov 15 = Consolidate between 33.3% - 38.2% retracement levels (3988 -4029) for 3 to 7 waves. It will break the resistance on the 3rd wave or 5th wave.- watch out for a exhaustion Gap for confirmation.
Low days- Oct 10-11
High days-Oct 16-17
Low days- Oct 20-21
High Days- Oct 27-28
Low Days- Nov 1-2
High Days- Nov 7-8
Low Days -Nov 14-15
High Days -Nov 21-23
Low Days -Nov 28-29
Modified Oct 12,2011 by Gtrader
Nov 15- start of a rally in the index ( good for long term traders to enter the market)
-minimal participation of the masses.(low volume)
Nov 25- might enter resistance at the 66.6% to 61.8 % level and stay for a few days .
( has narrowing gap between open & close)- Many technical analyst at this point will began to recognize a Cup and handle pattern and many institutional traders -buyers will enter the market .
Dec 7- 9= Hope and good news will be out in the market. Index will rally to
Start a bull run in the Market until 161.8% retracement with High Volume of participation from the public.
Net foreign buying will be the name of the Game. Choose the stocks with sound fundamentals.
" Choose stocks fundamentally, while Trade Technically"
Recommended on Dec
Mining & Oil - Long term buy
Power corp: very bullish- Long term buy
Services sector- near breakout good buy at breakout.
Banking sector and Brokerage firms- first to move rally
caution : Market might weaken between Feb 2- 5 2012 for a possible correction.
The PSEi Geometric Time Analysis
Data Interpretation:
The SQUARE :Aug 2- Major Peak will square time at Nov 1-3 that will repeat another bottom followed by a sudden drop in the index. This will be repeated in Feb 1-3 with a lesser magnitude then May 4-6 2012
THE TRIANGLE :While Aug 2 will trine on Dec 5-7 2011 as a pottential bottom to peak/rally as well as May 2- 4 2012. Its a Buy opportunity but set your TP & cut loss.
We might see stock market bottom from Oct-Nov this year and consolidate for a while(at least 3 waves). On the other hand, watch out for mining stocks to peak in the same period. The Bull run might start first week of Dec till next yr.
Remember: -The Trend is your Friend.
Always follow the your trading rules and always be in tact with your trading plan.
Always have a target price and set your cut loss and be not be carried by your emotions.
I have drawn a general direction of the market to serve only as a guide. I don't give or recommend entry or exit points to specific stocks; this is for the astute trader to learn from his own experience and to trade at his own risk.
DISCLAIMER:
This are just my personal analysis/ assessment and does not reflect the actual market movement of price and time but are all based on speculation/ estimate for the purpose of forecasting future market movement. The author is not liable to any effects on your financial decision and Traders should trade at their own risk based on the recommendations provided.
