weekend charting oct 15217, page-135

Nice work GJ, rather than give you feed back on chart 3. I prefer just to add a few and let people digest there own thoughts.

See for many years opinions are said to be the inspiration of driving markets up and down, and from that history develops in the data which provides our chart.
So from the facts ( being price) you can see that the opinions are really not worth too much if you ignore the markets historically, and sadly we all do at times.

Dow 1

After 1929, it took 3 periods in time before new highs were achieved, after the run up to the 1929 highs.




Dow 2

Roughly 1.5 times before new breakout after 1966 highs, which ultimatley gave 2 perios to 87 highs



Dow 3

To absorb 1 period in time after the 1999 highs, it projects to mid 2012 ??? So maybe you could suggest a move from there, but I doubt if its before




XJO 4

Similar projection in time for the XJO, now if we went to a new high or 7000 as your chart suggests, isnt that similar to the Dow chart leading to there 2007, HISTORY repeats ???




XJO 5

So I pose the question with the example of 1987, that if you build a solid chart you will increase the probability of stability going forward



Conclusion

Now you, we may all have an opinion on matters from currency war's, yanks being devalued and basket case, precious metal safe havens and so on
But if you increase the volatility without stability then charts while they look exciting now, they become the stepping stones to further instability. Now I have just shown you very good reasons historically why this market is not out of the woods and some charts suggest like wise ??

It doesn't mean you cant trade, and the market will always provide opportunity, but to promote or suggest we are moon bound just yet is probably fraught with danger.

You can try and change history, but I doubt it can be done.

I reckon some are silently freddofogged that our AUD is at parity dont you ???



TD there in lies the revers thoughts after I saw your Gold intentions through the week. Flick back to earlier in 2008 and you will see I did quite well out of a falling AUD and falling Gold :)))



PS: Im still a bull at heart, and I did for the record gain more long pts on the index last week then short points, so no prayers for Rob to our new saint just yet LOL