Morning Report Wednesday 24 September 2014
The Dow and S&P500 are falling, this is focus time
Amazingly, 85% of the time, markets trade sideways, but in the other 15% of the time, the real value can be added by prepared investors. The ASX200 has already corrected 6% from the highs of August, led by the falling $A. It now feels that the major overseas indices are going to play catch up. My current target areas for indices that are technically clear to me:
Russell 2000 (US small cap index) 3.8% lower – see chart 2.
My “gut feel” is that the Dow will fall 1000 points from here (6% lower) and the ASX200 will trade down close to the major support area of 5100; this is 100 points below the 5200 area where I believe the index represents good value, hence a classic overshoot. I am looking for bargains on the horizon and busy subscribers should consider putting some “lazy” buy orders in the market and / or watch out for our trading alerts.
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