Goodnight and Goodbye

Its time to look at those 'short' positions.....

the DJIA has stormed ahead of the XJO, it almost seems as if the Aussie market knows that the US is bluffing.

the below charts show what i have been looking for

Wider shot

Close up

Also the XJO is looking prime for another touch and rejection of the overhead resistence.



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Looking to Short 'soooon'

Well what a call....this baby ran like a man being chased by his 'lovers' husband - LOL

But the 'brakes' are starting to be applied....for the meantime

this could be a 'rest' period before another leg-up or result in a Lower top on the XJO.... BUT note; we have now re-entered the up-trend - very similar to June/July.....interesting times

Important to note is that the DJIA has gone on to make new highs while the XJO seems to be caught in a 'rut' - seems like the bulls are running out of cash or cashing in their profits....very interesting

Now this chart is why i'm looking to short. I think this rally - especially the DJIA still has legs to run...will be very interesting

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Divergence - Again

Looking at the Weekly charts of both the DJIA and the XJO the divergence is getting scary. I've been watching this for the past week now and have been waiting to see what happens.

I think the verdict is 'long'.

I think the recent re-trace has only been that, a re-trace before this bull market continues higher. The recent consolidation around these levels is telling me the bulls are coming back to play.

XJO

DJIA

Master returns

LAWS OF MULTIPLE TIME FRAMES

1. Every time frame has its own structure.

2. The higher time frames overrule the lower time frames.

3. Prices in the lower time frame structure tend to respect the energy points of the higher time frame structure.

4. The energy points of support/resistance created by the higher time frame's vibration (prices) can be validated by the action of lower time periods.

5. The trend created by the next time period enables us to define the tradable trend.

6. What appears to be chaos in one time period can be order in another time period

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