huge stock market rally is over for now!

Is the huge rally over for now?

  • yes, rowshan is usually right

    Votes: 110 34.2%

  • No! more upside ahead

    Votes: 113 35.1%

  • I don't know/I don't care/stop with your polls

    Votes: 106 32.9%
  • Total voters
    322
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Quote from B. Rowshan:

Why 85? Please explain. Thanks.
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It's actually an extrapolation based on the correlation of the currency pairs I mentioned (with the S+P) and where I expect them to go.
 
Quote from Ivanovich:

It's actually an extrapolation based on the correlation of the currency pairs I mentioned (with the S+P) and where I expect them to go.
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OK, can i ask you for more than a one-liner please.

I ask because there is seemingly no support or resistance tests that have occured at S&P 850. I'm not a forex guy, i'm just trying to understand.
 
Sure. but I don't have the exact numbers here at work, but here goes...

The correlation between AUD/JPY is here (though my numbers at home are slightly different)...

http://forexautomaton.com/research/...-of-financial-crisis-spy-and-audjpy-2007-2009

Based on my projected analysis, I expect AUD/JPY to retest the 68 area, which I calculate to be about 850 on the S+P.

I also look at the AUD/USD correlation as well and factor that in.

That kinda make sense?

So while there probably are no resistance levels on the S+P as you say, I'm translating my forex resistance area into the S+P so we both speak the same language. :)
 
Watch the yen crosses for equity direction. I use guppy mas to visually see the strength of the move. I don't need complex algos to tell me the yens are moving. Aussie correlates better with the precious metals than equities. Aussie should hold up better than the other majors should the government's price fixing fail. With the spx trading at ~14.9PE and int rates climbing they will force another liquidation. The excess debt must be washed out in order for us to move forward [recovery].
 
Quote from B. Rowshan:

the original resistance at S&P 928-930 now looks to be holding for a few months, I can sell S&P 950 and 1000 calls for July, August and Sept. This trade is a low risk, nice reward trade. And since I believe the odds are in my favor, I am comfortable with it.
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On a beautiful friday morning, life is good.

Isn't it great that you can take b. rowshan to the bank everytime amigo$ !
 
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