Fasten your selt belt

In 2010, we have several major planetary alignments, that only happens every 80 years. The first one starts this week and then another one next week. The Bradley Model's turning dates are based upon certain planetary alignments. The 2010 Bradley Model chart shows, starting around March 1(give or take a couple of weeks), we will see a new trend take shape, that will last through mid August 2010(see above chart). The slope of decline on the chart shows the new trend will be strong and fast. The Bradley Model only predicts the turning points, not the direction. Although the past 3 years have been uncanny accurate in the direction. The markets have been in consolidation since the last Bradley date on November 9, 2009. The summer rally ended in November and started a sideways(consolidation) trend, as the 2009 model predicted. Now, will the markets start a new rip roaring rally or start slip sliding away? We will know by the end of March or sooner. Also interesting is in 2010 the Bradley model hits it's lowest reading in 70 years on August 10th. on the siderograph (see chart below courtesy of Rosecast.com). Could we retest the 2007 highs soon or a re-test of last years low? There is a lot of gaps in both directions. I think we could see a 300-400 point move in the S&P 500 in the next 6 months, based on the 2010 model. The way I use the Bradley model for trading is, 1) when to look for turning dates, 2) it helps me to stay "in" the new trend, vs fighting it. Last year I knew a big rally would be starting around late winter or early spring, based on the 2009 model. When the markets bottomed last March, I was buying, when most where still shorting. It's all documented here in last years archive.

Russell 2000 hits monthly pivots

The Russell 2000 futures this month fell to the Monthly S1 pivot(see lower blue circle), and then rallied up to the Monthly R1 pivot(see top blue circle) yesterday. The Monthly pivots told traders where support and resistance is, for the month of February. Buy S1 sell R1. That's Pivot Power! If you bought 1 TF futures contract at S1 and sold it at R1, you would have made $5000 in 2 weeks.

S&P at the 50 dma

2 weeks ago I said, the S&P was giving a buy signal on the 150 dma and the Monthly S1 pivot(see green arrow). Since then the S&P has rallied 65 points to the 50 dma and Monthly Pivot point. This week, I'm looking for the S&P to go up to the monthly R1 Pivot at 1126, and possibly the Weekly R2 Pivot at 1133. Look for the Monthly PP to hold on any pullback at 1100 or possibly 1088(WS1).

Pivots stop the Dollars rally

I wrote a few weeks ago, that I thought the dollars rally would be coming to and end soon, at the Monthly and Yearly pivots around $80.65. I miss it by .10 cents. The March Dollar futures index went up to the Monthly R1 pivot and the Yearly R1 pivot(see blue arrows at top of chart), did a double top and now is starting to roll over. It could fall fast to the 20 or 50 dma. The Monthly pivot point is in between those ma's at $78.68. Stochastics are also rolling over from the over bought area and is doing a HNS pattern. The trend is still in tact to the upside, probably just needs to shake the weak longs out.

Dow Jones 150 dma

The 150 day moving average(dma) sure has been a popular spot for reversals. The S&P 500, Gold, Dow Jones, etc., all have found a floor there, this past week. Someone big(s) is buying there. Last July, the Dow Jones went down to the 150 dma and then started a 2500 pt. rally(see green arrow above July). Will it do the same this time? My gut says no, but I'm keeping an open mind to the possibility. Anything is possible.