New YEAR !! 2012 rally...!

Will it be the "end of the world as we know it?" ..

Probably not !

DAX and FTSE are breaking our of downtrends /triangle formations..Copper close to breaking out of a triangle as well..

DAX has some tough resistance between 6170 and 6400 above 6400 and clear skies above...target 7200

Also Euro pairs look like finding support and with HUGE short positions a rally above key levels may initiate some short covering.  EURJPY looks like a FALLING WEDGE...

So if we get follow through the rally may be LARGE

Possible reverse Head and shoulders DOW target 10040!

See chart...pull back to 8500 8450 level...BUY looking for 10040...stop 8125..risk 375 reward 1540...

LOOKS like shorter term trading the order of the day...for a while...Santa rally...
BUT on the daily looks like we need a close above 10500 for things to change to bullish longer term...

Look for commodities to confirm the und OIL GOLD etc etc...also a weaker dollar...if those are not there SUSPECT the rally!

Beware full Moon! November 13th...

Full moon Thursday 13th Nov...

full moon has known effects on behaviour of lots of animals (include humans in that category!)

Could be we get the panic day soon..the way the market is behaving today...(wednesday 12th) no mercy for "buyers", will they capitulate soon? And at what level....

7200-7600 DOW....best case 5600 worst case..

Gold and oil also being pulled lower..where will OIL be in 3 -5 years? Will Asia (China, India etc etc) stop wanting cars? Will we all be on electric cars? OIL will be a buy soon, however psychology is ruling the markets - be careful short term...

OR...

Will the full moon initiate full blown lunacy ? A HUGE rally from these levels? Who knows ? Trade what you see...

DAX time for a correction?

DAX has rallied 25 % off the low at 4000, too much too soon? On shorter term charts also showing a wedge formation (usually bearish), once we break below we should see a correction of this rally - if not new market lows...ALso volume has been falling on the rally...maybe a throwover of top line then - fall..

As I said in previous posts..we need to build a base for a longer term sustainable rally..