Subscribe via RSS Feed

This is bull’s chance to maintain the uptrend

In the past days the S&P 500 and DJIA bounced off the daily 200 EMA. Bulls emerged to rescue our uptrend before violating the November 2009 lows. Due to this rise, the big picture uptrend is still very well intact. We can therefore regard it as an important juncture if bulls really mean it seriously.

The conclusion is that we can expect a bounce here. The first challenge is awaiting us at the upper range of the downtrend channel from which we sold off yesterday afternoon. Breaking this can be an attempt to break the intermediary 1,100 resistance. Dropping below the 200 EMA, however, can result in some serious outcry.

In Search for a Catalyst

Despite the recent recovery in markets, anxiety is still felt. What happened the past days was a gap fill from November 9 (marked red) and a bounce from this level. We are currently in a state of indecision, waiting for a new catalyst to give us direction. Accordingly, the SPY could not accomplish more than an inside Doji today.

By looking at the intraday activity, we can observe a cautious uptrend toward resistance areas. These are especially the 20 and 50 EMA in the daily chart (also visible in the Dow Jones). If bears are able to defend the resistance areas and break the small uptrend in that process, we should get more defensive.

Closing above the moving averages, however, can be an attempt to reach for January’s highs.

Stock Market Resumes Its Downtrend

Clients are short positioned since January 21, when our trading system signaled an entry opportunity to exploit the coming downside in the markets. We are still holding this position completely untouched ever since. If you want to learn more about Dynamic System (which has returned 61% in 2009), visit our homepage.

As trend followers, we try to hold onto this trade for as long as possible. I would like to give a short update on what is currently being observed: A very visible uptrend channel in the SPY, which took shape since mid-August, has been violated today. Another reason for concern is the break of the multi-month support level at around 109.00. Both of these breaks signal more intermediate weakness ahead and do not happen for no reason.

Yesterday’s announcement by the Federal Reserve to leave the interest rates unchanged was celebrated with cautious enthusiasm initially. It dissipated entirely today and we are resuming our downtrend.

Remake of the Trend Architect Blog is Complete

What you see right now is the improved look of our Trend Architect blog. The reason for this step is to structure our content more effectively and to communicate the mission of our small team clearer than ever on our homepage. We put efforts to bring this message to the public:

  • Make trend following straightforward and available to anyone
  • Offer a solution that is affordable to our clients
  • Guide our clients with professional position management

The product with which we want to achieve this goal is already very profitable at an extremely attractive price. If you take into account how client’s funds increased by nearly 61% in 2009, the $39 subscription fee is compelling! Read more about our vision, Dynamic System’s performance, and other information on our homepage.

Back from Trip in Asia

You might know that I spent a wonderful time in Hong Kong and Kuala Lumpur during Christmas. I twittered from time to time during my trip. Hong Kong is very interesting for its two dimensions of old and modern clashing together.

Besides the overwhelming sceneries, I especially enjoyed the warm climate and food. Now I’m back in cold Frankfurt where it has been snowing basically every day. Here are a few impressions: