Trading with point and figure

Dax
raw chart
1 month of data

2qmhvlk.gif
 
The raw chart is excellent practice
visualise the trends
pick off the reaction areas
look for the breakout points
 
dax
some detail....
but ...if you practice a little at chart reading then you would have picked off the marked areas and trends

wvahhy.gif
 
break of trend/aqua internal
then it faked above aqua horizontal...that got sold off quickly
.7688 pivot rez
7650 horizontal supp
 
- Focus on 'flash PMIs', UK PSNB, raft of Fed speakers, Carney testimony
and International Petroleum Week, API Inventories also on the schedule

- PMIs: broad based strength across G7/Eurozone expected to persist, keep
an eye on price indices

- Charts: WTI, Japan PMI Prices, France Services PMI

..........................................................................

********************
** EVENTS PREVIEW **
********************

It's 'flash' Manufacturing and Services PMI day for Japan, Eurozone and the USA, while the UK has the last PSNB budget data. On the central bank front, the February RBA policy meeting minutes were unsurprising, as they generally in Statement on Monetary policy months, and it remains to be seen whether an abundance of Fed speak has anything but a passing impact, though Carney and his BoE colleagues testimony on the latest Inflation Report will attract some attention, perhaps the more so after last week's run of inflation and Retail Sales data. International Petroleum Week starts today, and features OPEC Secretary General Barkindo among the speakers, which in theory may prompt some volatility in oil prices, though as the attached chart highlights, prices have in truth been churning sideways, and even the large API (due tonight) and EIA crude inventory builds of recent weeks have failed to force a confirmed from that trend. On the government bond auction front, the US kicks off its end of month refunding with $26 Bln of 2-yr.

** World - Feb 'flash' PMIs **
- If today's PMIs are as 'little changed' as consensus forecasts suggest (which is nowadays as typical as it is agnostic), then they will be little more than statistical roadkill. That said they would be at levels, which would confirm that business activity in the G7/Eurozone is expanding at a level that is faster than in recent years, and indeed broad-based rather than patchy as it has been all too often. A close eye will need to be kept on price indices as official and survey indicators continue to point to a further uptick, even if these are indicative of a reversion to 'more normal inflation levels', rather than any inflationary threat. A quick look at the attached chart highlights ringing input price pressures in Japan, which are only gradually feeding into output prices, this is perhaps as significant as the reported rise in the headline index to a 3-yr high of 52.6 But to reiterate a point in respect of inflation, that reversion leaves real G7 govt bond yields, which have very low inflation hardwired, looking wholly inadequate. A 66-month high for the French Services PMI underlines an improving trend, and while the Manufacturing PMI was weaker than expected at 52.3 vs. a forecast of 53.5, it is still the fifth highest reading since 2011 - as ever perspective required.


from Marc Ostwald
 
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