S & P 500 Big Picture

As promised I'm posting S&P 500 historical chart this time which shows the way back from 1930's.Now lets take a look at events happened in due course of time circle in red

1.First circle was in early 90's during dot com when it broke away from the channel that was the growth engine in broader economy which went parabolic and got peaked 1999-2000 bust.

2.Technicially speaking after having took of the channel it has to test the channel which it did that when fed fueled the house market in 2002 and which got peaked in 2007 bust.

3.So this time after testing the upper channel it got into the channel with 50% which was healthy then we had fed intervene into the markets in late 2008, And pumped the market with his printing press and now test the upper channel which is resistance was support before.Now we have to wait and see how it reacts for that we have to options:

a.If fed raising the rate will effect the markets and we will see downside in market and correct to 500-600 level to lower end of channel which is show on chart with grey line.

b.If fed still eases with lower rates then it will crawl along with the upper channel and stay with the channel as dollar devalues.

Good luck folks and enjoy trading.

Gold/Silver Turning or Tipping Point

It's time for physical metal now and the biggest physical market squeeze is on which is huge so buckle for big ride so better stay with it as inflation is going out of fed radar.Take a look at this article which tells us the race for the gold standard is on

Texas University Endowment Storing About $1 Billion in Gold Bars

Belarus central bank halts sales of gold for roubles

Gold has succesfully tested the Inverted H&S pattern support which is bullish and uptrend in tact after strong breaking $1440, And heading for $1580-$1600 on futures market making new highs drawn in red line on log chart.Spot price on gold is $1486.



Silver on the other hand is flying high so don't look for dips. So all you have to do is to chase until $50 which is all time high and $52.40 on futures market.Spot price on silver is $43.02

Currency Updates

Currency markets have been in volatile recently after 2008 crisis when everybody flocked into the US dollar which was in downtrend from late 90's had a huge upside correction which is good for the dollar Index before going down the toilets.When fed announced the QE then dollar is literally a sink hole.

We had multi-year correction on currency markets, And which is healthy for indicies and now ready to rally as dollar in big time devaluation going on by end of 2012 summer.So better flock into the currencies which have strong fundamentals, And these are currency which can easily double based on technically stand point.

Australian Dollar Index:

1.No easing on their economies for recovery
2.Strong mining industries(which has got huge precious reserves)
3.Strong agriculture based economy
4.Strong backing on reserve ratio based on interest rates






Swiss Franc Index:


1.Currency is backed by the Gold
2.No easing




New Zealand Dollar Index:

1.No easing on their economies for recovery
2.Strong mining industries(which has got huge precious reserves)
3.Strong agriculture based economy
4.Strong backing on reserve ratio based on interest rates





Canadian Dollar Index:

1.Strong exports on Energy sector espl oil, natural gas, coal etc.
2.No easing on their economies for recovery
3.Strong mining industries(which has got huge precious reserves)
4.Strong natural resource to sustain low density population