Similiar setup to beginning of 2005

Discussion in 'Trading' started by Comanche, Jan 2, 2007.

  1. Technically, the Dow looks similiar to the start of 2005. We had an impressive run of aprox. 12% from October of 2004 to the last day of December 2004 closing out the year at aprox. 10,765 (I can't get the exact # off of my chart). The first trading day of the New year had the market gap open up 60 pts. and quickly trade up to 10,875, up 110 pts before falling hard to a low of 10,710, down 55 and settling at 10,750, down about 15 points. The rest of January was a correction of the Q4 rally which certainly looks like a similiar setup to the current situation as we have had an incredible Q4 run this year without a correction which is now overdue. And low and behold like in 2005, we are now trading quite a bit higher this am on futures, had the market opened today it would have gapped up like in 2005. This would be a good time to ring the register and move into fixed interest as a correction at this point looks very likely.

    2004/2005 futures chart attached.
  2. Starting to look like deja-vu, market gapped open higher again and now going negative.
  3. Sweet call ! Keep up the good work !
  4. nope

    time to buy more

    very bullish