2009/03/30 – Magic Trick #005 – Pivot Points, Double Bottoms, and S&P500 TARGET @ 1,200 PREDICTION!

This post is divided into two parts.  In both parts, you’ll be shown theories, which support a target of 1,200 points on the S&P500.  So, without further ado…

Part I – Pivot Point Analysis, Or Why We Are Currently In A Bull Market

This blog site has always taken on the premise that history tends to rhyme with itself.  Spot a pattern in the past, and the pattern is likely to rhyme with itself in the future (things never happen the same way twice, though).  Hence, here are two examples of pivot points illustrating how they’ve behaved in the past:

TSX:TIM Pivot Point

TSX:FNX Pivot Point

Now, when you compare those graphs with that of the S&P500, you’ll notice how remarkably similar it is to TSX:FNX.  Here, take a look:

S&P500 Pivot Point (1970-Present)

Since we observed a Fibonacci retracement of .618 on TSX:FNX, we believe the S&P500 will retrace similarly, giving us a target of 1,200 points in the near future.

Part II – Double Bottom, Or Another Theory Supporting A Target Of 1,200 Points On The S&P500

Again, history will tend to rhyme with itself.  Here is a chart of a past double bottom on the S&P500 (intraday):

S&P500 Intraday Double Bottom

As you can see, the double bottom retraced nearly 100%.  Now, here is the present day double bottom on the S&P500:

S&P500 Present-Day Double Bottom

There you have it, folks!  Both pivot point and double bottom analyses support the S&P500 going to 1,200 points in the near future.

2009/03/23 – Magic Trick #004 – Prediction vs. Reality

Hey folks,

It’s me uncanny wizard.   Here’s the prediction I made for the S&P500 on February 17, 2009:

S&P500 prediction on Feb. 17, 2009 (Daily chart)

Here’s how the S&P500 played out so far:

S&P500 on March 23, 2009 (daily chart)

As you can see, I made an error calling the bounce too soon.  But, nonetheless, the general “stock pattern” has played out decently, so far…

… and remember, it’s magic!

2009/02/25 – Magic Trick #003 – Double Bottom, Bull Flag

Lots of neat stuff happened on the S&P500 stock index today!

2009/02/25 – S&P500 intraday chart

Among the easily identifiable chart patterns on this day were the intraday “double bottom” and “bull flag”:

The Double Bottom

The double bottom

The most reliable double bottom occurs when the second “bottom” occurs just slightly below the first “bottom”.   This is the perfect lure to encourage shorters to act.  When they quickly discover that they are wrong, their covering action leads to a short-lived explosive rally to the upside, giving rise to the second upleg of the “double bottom” chart pattern.  Have a look at today’s double bottom:

2009/02/25 S&P500 Intraday Double Bottom

The Bull Flag

The bull flag

The “bull flag” is usually one of the most reliable stock chart patterns and typically occurs at the half-way point during an extended rally. Today’s S&P500 intraday “bull flag” pattern is just absolutely a textbook example.  Have a look:

2009/02/25 S&P500 Intraday Bull Flag

- Posted by Uncanny Wizard (Questions?  e-Mail me!  See contact info on sidebar).

2009/02/20 – Magic Trick #002: Filling the Gap!

Alot of you are scratching your heads, wondering where the late-day rally on the North American indices came from, other than the White House trying to halt talk of bank nationalization.  Well, actually, this talk is the fundamental reason behind the rally.  But, if you want to become good at market timing, and hence a good short-term trader, throw fundamentals out the window!

You’re going to be shown the technical reason behind the rally.  It’s called “filling the gap”.  The gap seen today is the space between yesterday’s low and today’s high earlier today.  Here, take a look:

2009/02/20 – S&P500 Filling the opening gap down!

It must be noted that the stock market in general, and especially the stock market indices do not like gaps at all and will try to fill them on the same day.

- posted by Uncanny Wizard (Any questions?  e-Mail me!  See contact info on sidebar).

2009/02/17 – Magic Trick #001: Bear Flag and PREDICTION FOR THE STOCK MARKET FOR THE NEXT 2 MONTHS

This post is suspsended due to some of the immature comments I’ve received by e-mail.

- Uncanny Wizard