Housing Sector....Can We Still Expect Downside ???

HGX is the Philidelphia Housing Index, an aggregate of Housing related companies' health. This index tracks companies such as Tol Brothers, LEN, etc...

Based on what is shown on the Monthly Chart, it is clear in hindsight that this index gave indications of the housing problems way in advance before the US Indexes started collapsing last Dec07.

It is worthwhile to periodically follow the chart pattern of HGX in order to gauge when the housing sector will start showing signs of recovery...

HGX - Monthly Bar Chart

DOW - Upside Resistances ....

when rallies of 900 points occur and followed by an attempt to rally yet again, can be bewitching an experience.... some may decide to move aLONG....but i caution the bear trend that is still largely in place...

a Long position now must be with a long term view as the economic crisis is far from over. rate cuts can help with liquidity in system, but risks is not abated as a result of easy money.

i prefer to sell into major rally days, by either adjusting existing positions to capture High IV or enter fresh bearish positions at my predetermined resistance points..

good luck to all....wish you HUat HUat !!!

DOW - Weekly Bar Chart

DJX - Immediate Resistances

some resistances sighted in the immediate term....


DJX - 30 mins chart

DXD - Ultrashort DOW ...Anything Special ?

there is an identified "breakway" gap recently formed.... it's now the 4th week since it occurred and still, this gap has not been "covered".... this leads me to suspect that it might be covered in the near future.

DXD - Weekly Chart



next noticeable pattern, is the formation of a triangle...and judging by the angle of the apex, it appears that there's a good chance it will move out of this triangle in lesser time than expected... my personal suspicion, is that it could be as early as 1st week of Nov, if it is to continue on the bullish path... otherwise, i would imagine this DXD to be supported at about 70.5

DJIA does look like it is faced with steep challenges ahead to reverse her bearish....

but hey, let's not get too carried away and start staging new bearish positions or piling on more risks than one is able to accept.

good luck all...

Hello ? Are You Still Around???

is anyone there ....or can we expect the voice recording machine for some time to come...?

Is SP500 Index at Support ?

Art DOW Out of The Woods?

In all TA, no 1 single indicator can provide meaningful signal on possibility of price actions.


by looking at 2 very common technical indicators; namely MA and RSI, we see a clear pattern

annotations within this 20 year DJI monthly bar chart explains.



equally critical is the last bar on this chart. it shows a long tail, a very expeditious and large recovery of from it's earlier losses. however, since we are only 1/2 way through the month of Oct, it is too early make a judgement call as yet.

should Oct's bar end with as a doji or a hammer, then, it maybe a strong indicator that a reversal can take place in the months ahead.

however, we must recognise that taking a bullish position now is counter action to an establish bear trend. and so, positions established must be managed for risks.

Vodafone Revisited

SPX - Mother of All Supports Breached ?

Will US Indexes Continue to Free Fall ?

it appears that DJIA is experiencing acceleration to the downside without any apparent support to be found ...yet


DJIA - Monthly Bar Chart




BUT....


when we open up DJIA as far back as 20 years...there's a ray of hope that DJIA may experience some form of support at 8100 region; that's >1000 points on the downside.

recently, we have seen -ve 800 points swing to the downside in single trading days, hence, this may not be as unthinkable in current moods.

i am still a proponent that when FEAR is at its height, we must adopt a longer term timeframe bullish positions, even though the left brain hemisphere is suggesting otherwise. however, in short term, it does appear that the downtrend is seriously intact.

so, let's trade/invest smart and be risk averse in our undertakings without being paralyzed.


20 Years DJIA

DJIA - Facing Resistance from Intradady Chart

10850 neighbourhood shows resistance

DJX 30Mins Intradday Chart