WAVES.GLOBAL – THE TIME SHOULDER

Mukul Pal · June 29, 2009

Pattern watching is considered to be anathema. Behaviorologists say humans see what they want to see, fundamentalists call it self fulfilling theories and quant’s might call it non mathematical. Ok! here we have a question for the three of them. We have illustrated BVSP, DOW, DAX, CAC with a head and shoulder like pattern, identify one from the other and tell us why such similar looking forms appear on different markets at the same time? Now they all may say, “It is coincidence”. Ok! Another question, the slide below is a ratio line between DJI vs. DAX. Do you still see a kind of head and shoulder pattern? Why does a ratio line also support a head and shoulder like pattern? We have carried DOW vs. N225 and DOW vs. FCHI ratio lines in the report. The lines still carry something like a head and shoulder pattern. Technicians are blamed for seeing the pattern everywhere. Did the fundamentalist,
behaviorologists and quant’s ever think why these patterns repeat and are all over the place?

Well the answer is that TIME has a head and shoulder pattern and this is why it is visible everywhere. We will come to the mathematical proof and the interpretation of the pattern for buy and signal later next week in our weekly TIME TRIADS report. The idea we are trying to convey here is that technicians believe in head and shoulder, see it, and the pattern is one of the largest quoted and written about because it exists in TIME. Time is fractalled. This is why you can not blame the technicians for seeing the shoulders and heads everywhere.

About global indices…as anticipated markets turned down on a few indices and paused on most of them. It was only SSEC, which continued to push higher. We expect a pause on SSEC soon. This is what we said on 15 Jun

Sub 8,720-8,700 DOW, we are DOWN on DOW and the rest of the global indices.

Pause is a good start, but if we don’t see some fast selling soon, the negative case will start to loose strength yet again. We remain negative on the overall equity market globally. We have carried the anticipated and happened cases.

Enjoy the latest WAVES.GLOBAL

ORPHEUS GLOBAL RESEARCH
WAVES.GLOBAL is a perspective product published on Monday. The report highlights top GLOBAL indices and emerging market indices viz. Dow Jones Industrial (.DJI), S&P 500 (.GSPC), German DAX (.GDAXI), Russian IRTS (.IRTS), Shanghai Composite (.SSEC), Nikkei 225 (.N225), Brazil BOVESPA (.BVSP), Indian Sensex (.BSESN). The product highlights Primary (Multi Month) and Intermediate (Multi Week) price trends. The report illustrates key price levels, price targets, price projections and time turn windows. The product uses Elliott waves, traditional technical analysis tools, sentiment indicators and other alternative research tools like INTERMARKET to spot outperformers and market trends.
REUTERS RICS: .BVSP, .IRTS, .FCHI, .GDAXI, .GSPC, .DJI, .N225, .SSEC, .BSESN
ORPHEUS RESEARCH AT REUTERS – UNITED KINGDOM
ORPHEUS RESEARCH AT REUTERS – USA