Markets High in March, 2010

The stock markets are felt to have been moving sideways for weeks with a slightly positive trend, trapped between negative and positive news on the economic situation. In spite of the fact that the market participants are feeling uncertainty and fear of THAT big market correction, every other week there are new highs being generated in the INDU, NDX and SPX. The new November high marked the ninth month like that in succession already. That high is shredding the last insecurity.

In the INDU monthly chart, we are parking at the 50% retracement from the last march low. We have produced a higher high for the ninth month in succession. According to our data bank, we should reach the absolute high in the 13th month, thus. ==> bullish!

Installing now the actual GUNNER24 Up at the SPX we'll see that we are following the steepest possible Gann Angle (Who might not judge it to be bullish?) and that we can expect the high here, too, at the 13th candle (March, 2010). The 2nd double arc in the monthly chart is corresponding with the targets in the Weekly GUNNER24 Up Setup. See Forecasts 11/15/2009.

Just imagine the following: If we traded futures in the minute chart we would almost feel we can't get into the market because it's running too fast. Well, we would watch the goings-on aiming to go long and waiting for a little decline, putting ever-increasing buy limits into the markets – but none takes effect...

==>  If with that feeling at the back of our minds we have another look at the monthly charts now, we realize that the market is really running faster than Carl Lewis used to be during his best times. Well, the money injections have their effects.

From my sight, our biggest worry that blurs the positive stock market outlook is the NDX:

Here, we have reached the 13 candle with generally rising prices.

But the GUNNER24 Up Setup which goes with it shows us that we have to think about covering our longs in the NDX at least partially.

Main target reached! With the last high, we have reached the first main target. From my point of view, the NDX has been the leading market for years. It always runs ahead of the other important stock markets. And I'm afraid it shows that we will have to cover at least ¾ of the positions and wait for the break of the 3rd double arc before we can go long again. Now a great deal depends on the appearance of the November candle: If the wick next week becomes longer, covering will occur. If the month ends near the double arc or even within it, the actual positions will remain in the market.

What else is to be judged as very bullish is the fact that the price has not rebounded from the actual Gann Angle more than once. According to the rules, it should be able to rebound from it two more times without breaking it on lost motion basis. Like always, you may join the daily actual GUNNER24 Forecasts in the Member Area.

All in all, the monthly charts form a clearly bullish impression. With the 9th higher high, a great deal has changed positively. For investors: Buy every dip! That assessment remains valid as long as the NDX orients itself upwards by the chart-anchored and marked Gann Angle which actually determines the course of price and time of the world stock markets. 

My advice for day traders and swing traders: It's time to buy the market!

That means: Buying retracements makes most sense and avoids getting involved with one to two day down swings.

With the GUNNER24 Forecasting Method for a general estimate of the market you need but 5 minutes  – Early FDAX # Trading – 5 minute chart – Part 2

At the 21:45 candle low we install a valid 5 Candle Counter GUNNER24 Up Setup because thus, optically we have got the targets for the short term price ascent in full view.

From below, the price touches the 2*1 Gann Angle and slowly follows it upwards, but according to the rules, it will not be able to break it upwards. The possible up targets are marked in the chart. At very first we have to assume that the buy targets should be reached and worked off in order to close the gap subsequently. So, at first wait and see the development and wait for a valid short signal.

That happens when we recognize the 2nd double arc is not going to be reached. The price is closing with the actual candle below the 1*1 Gann Angle and thus sliding into the bearish half of the setup. We go short with the final quotation of the actual candle. SL is the daily high so far.

Our target: gap close.

At gap close, shortly before reaching the 3rd double arc we cover our short contracts and we wait and see the further development.