I have been a long term bull on the Equity markets, while others are determined to continually call tops, I have stood my ground and kept my bullish cap on. Of course, at some stage a top will print and we will under go a correction, but for the current time I view the Equity markets as having one last upside push before the seasonal cycles flip.
On this occasion I refer to the DOW JONES/WALL ST.
The most successful traders are those who make big bold brave calls and then put their money where their mouth is, and today I’m going to place my own DOW near term and end of year calls.
Based on the Reuters seasonal cycles, I do expect the DOW JONES to under go a 10-20% correction starting towards the end of April - Start of May, this correction should last for a forecasted time period of 3.5 months before consolidating and then moving back up to print fresh highs at 15200+ by end of year.
But before we see this 10/20% correction over a 3.5/4 month period, our near term target should be placed at 14700/750.
Our weekly and daily trends are firmly intact, despite the recent top calling from various people and analysts, no reversal has taken place, also not signs of a reversal has taken place. I have been taught and trained to only trade trend reversals after confirmation has taken place… As of yet, no reversal, no confirmation.
The recent decline below 14500 to 14381 on the DOW was an optimal trading opportunity to enter LONG on the up-trend, but if you have missed this opportunity, then plenty more will present themselves. The recent US close back above 14500 is very bullish after the daily dip and should be now seen as accumulation options available to you.
Personally I will be looking to build a LONG position each and every time the DOW JONES dips to and rejects from its 4 hour 55ema over the next 2-3 sessions, even clear rejections from the 1 hour 55 ema are good options to buy, with stops below 14500, the near term target will be set at 14700 which should be reached within 3-10 sessions.
After 14700/750 is reached, I expect the seasonal cycles to take hold, this is the point where I would expect 10-20% corrections on the Equity markets to take shape over a 3.4/4 month period. These corrections should be viewed as opportunities to re-buy the DOW JONES for an end of year target of 15200+.
[B]
Near Term Target 14700
End Of Year Target 15200+[/B]
