chinese news paper article on global recession, page-2

thanks for the article. great read.
here's the magik numbers for the night for djia. spot on! sorry for the jumbled up numbers - the table doesnt appear right here. link at http://theinflationist.com/stocks/magik-edition-8

MAGIK Numbers

Daily and Weekly Dow Jones | FTSE Analysis



By Mr. Magik

4 Feb 2009 | Edition 8



DOW

FTSE


Daily
Week

Daily
Week


8031
8109
Pivot
4127
4165
Pivot

8160
8300
R1
4213
4300
R1

7945
7800
S1
4080
4019
S1

8350
8754
R3
4340
4577
R3

7738
7350
S3
3950
3740
S3








8250
8524
R2
4270
4429
R2

7860
7580
S2
4020
3885
S2

85
42
%
85
63
%




Dow

No trade taken. The Dow closed at 8078 on Tuesday. We are expecting the Dow to trade within a range of 8160 (daily R1) and 7945 (daily S1). Swing is overbought at 85% hence we are expecting a pullback to close to pivot today 8031. We expect daily S2 7945 to provide support. The key overlap point is at 7800 – 7860 (DS2) which should be the next area if strong support, this level is expected to provide very strong support today. Today will decide if we are going higher or yesterdays bounce was merely correcting the oversold condition. We expect the Dow to trade in a zig-zag pattern.



Trade plan

Long (half of normal position) at daily S1 7945 with a target of R1 8160, stop is 7800. Re-long other half if it hits 7860.



FTSE

The FTSE closed at 4164 in a overbought position on Tuesday. The expected trade range is between 4213 (DR1) and 4080 (DS1). The FTSE touched DS1 4040 as written in Edition 7 yesterday and bounced strongly off it to rally 2%. FTSE is hence consolidating and not downtrending as we first suspected. We now need to trade the range in a consolidation pattern. We should buy the lower end and sell the upper end, read trade plan.



Trade plan

Taken profit from Monday’s 4050 at target 4120. Turn short at today’s DR1 4213, overbought yesterday hence sell on impulse uptick today for FTSE to return to daily pivot as target. Sell 4213, stop 4235 (recent high 4225), target is 4127.



Best to your trade,

Mr.Magik