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One of the harder parts of trading is when markets are starting to make a turn which may be just a correction or may be the start of a new trend.
The DX Sell side trades this week have caused a lot of our traders a real headache, particularly not seeing the Sell signal for DX on 05/29, now with a small but nice $405 per 1 contract at Friday's close.
That Sell was not a standard GMAJ signal, nor a T.03 or PLUS signal, but I did post it as a Sell for our GMAJ PRO subscribers, and for the same reason I posted a "C" Sell for our PLUS signal subscribers in S&P for 05/29, now worth a useful $1100 per 1 contract at Friday's close, and about the same in the Dow (YM) if you chose to execute in that market. Add in about $2100 per 1 contract from the GMAJ PRO Sell signal in DAX for 05/29 which extended the daily DAX Sell "3" signal from our PLUS suite of signals and you can see that there is a veritable bonanza available from knowing how to really trade. And you can add Tuesday's GMAJ Sell signal in Natural Gas to see somewhere near $2500 per 1 contract also to Friday's close.
Nice enough.
I have scheduled a Danielcode free webinar for Thursday 06/06 and will show you one of the more difficult trading techniques the "Double Hook". DC members already have all the tools that I use to identify this unusual pattern, so if you weren't aware of how to handle this difficult phase of market movement, I will be happy to show you how. Put this date 06/06 in your diary and I will look forward to showing you the steps that you needed to take to see these worthwhile trade setups.
As a general rule we can say that markets are organised, rational, orderly and sometimes predictable; and it is vital for your Equity curve that you can see these setups in advance.
Importantly The 4th Seal has been anticipating this week's turn for a while. This is the current comment on DX at the 4th Seal page above:
"From last week: "There is a 59 cycle coming up starting on 05/21 and as this market is now at 4th seal resistance we are again looking for a minor turn down. The higher degree trend in this market is up so expect nothing spectacular on the down move."
Nothing to add. This market made a modest reaction on the 59 cycle and 4th seal so far."
And for Equity players, The 4th Seal had high emphasis analysis of the DAX and the S&P again giving you the exact numbers and time when a turn could be expected. Here are the current 4S comments on DAX (I can't show you the charts here, but as usual, they are amazingly accurate):
"From 2 weeks ago : "The DC weekly chart in the DAX index is close to 4th seal resistance with an expired 59 cycle last DC week and a 118 and 177 cycle (2 times and 3 times 59) expiring next DC week ending on 05/13. 3 times 59 is originating from the March 2009 low so it is worth mentioning. This cluster of cycles is even amplified by a 62 cycle that also screams top. All this evidence suggests that we need to be on very high alert for a major top in the making for Europe. There is also a 70 cycle expiring in this market and we are currently exactly at 4th seal resistance. All evidence is lining up for a turn to happen. It's time to get ready folks."
Last week : "If you count from the momentum low instead of the closing low the 62 cycle expires this week instead of last. All evidence is still pointing to a turn in the making for this market. Active DC week ends on 05/22 so we expect a top in this market before then. And even a stretch to next week would still be valid for the 62 cycle as all cycles come with a +- 1 DC week variance. I'm not trying double speak here, these are just the facts. But odds still favor a top in the beginning of this week and last week's warning to get ready is more valid than ever. By the way, check out how precise this market is tracking the 4th seal resistance."
It looks like the turn is in place. Now let's see if it can gain some downside momentum. Look at the precision of the 4th seal recognition both on the high and on the close."
And for the S&P:
" From last week : "Next to the $DAX the $S&P is also pointing towards a top in the making. On this chart we are at 4th seal resistance and have a basket of cycles expiring ending on 05/24 +- 1 DC week. On the 12 day chart the 59 cycle from the momentum high stretches till next week which suggests it could hold up for another week but remember that the first opportunity for a high comes from a 59 cycle that originates from the closing high which was a week sooner and which expires now. As we are getting into the latter part of the time frame for the $DAX to top we should see the top in the S&P sooner rather than later."
Looks like the top is in place and we are now seeing a test of the high. If the highs are exceeded (which is unlikely) odds favor only a small higher high to get a more precise recognition of the 4th seal as the 4th seal in the $DAX was more precise."
If you missed these nice trades, it's only because you were not following the Danielcode.
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