David Schirmer's All Ordinaries Index (XAO) Report - 30 July 2007

Welcome to my Australian All Ordinaries Index Report. This report is in no way indicative of what individual stocks will do but rather a general ‘crystal ball’ of overall market movements. Individual stocks often do not move in the same direction or the same magnitude as an index. To know what stocks to buy or what to sell you must do your own study and research. Please read the disclaimer below.

Since writing my report last week markets around the world have taken a bit of a fall. I wrote “The All Ords has a 22-week cycle from trough (low) to trough and it is currently in week 20. That indicates a short term drop of 316 - 556 points over the next 2-3 weeks.” (http://davidschirmerxao.blogspot.com/)

The All Ordinaries Index fell down to 6087, a 366 point drop … so far. It has met time and price criteria for the primary cycle. The challenge is that the market is also in the time period for a further decline into the 46-month cycle low, and even further into the 18-year cycle low.

My bias for this week is a short rally followed by a further decline to complete the primary cycle. The next few weeks will indicate just how bearish the market may get, or if it will have one last bull run.

Resistance on the way up is at 6203, 6258 and 6364. Support levels for the decline are 5994, 5518, 5043, 4568, 4092 ... and ... A highly probable date for the 22-week cycle low is August 3-6, with minor reversal dates on August 10.

Next report out on Monday, August 6.

Yours in abundance,

David Schirmer

The LIVE Complete Stock Market Course on DVD and CD plus 2007-08 Report: www.TheCompleteStockMarketCourse.com

The Basics Of Creating Wealth:
www.7StepsToUnlimitedWealth.com


Disclaimer
The training and education services provided by Wealth By Choice Pty Ltd (ACN 112 230 958) involve the supply of factual information about securities and commodity markets only. It should not be assumed that the methods, techniques or indicators presented will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. The training and education services do not involve any recommendations in relation to your personal financial circumstances or investment needs and does not provide any investment advice. Examples presented are for educational purposes only. Any stock, option, warrant, CFD or futures contract mentioned are not a recommendation to buy, sell or hold but merely a study of past performance.

Before making any investment or trading decisions you should obtain advice from a licensed securities or financial advisor and consider with or without the assistance of a securities or financial advisor, whether the advice is appropriate in light of the particular investment or trading needs, objectives and financial circumstances of the prospective investor or trader. Wealth By Choice Pty Ltd and its representatives and officers will not accept liability for any loss, damage or expense incurred or suffered by you if you rely on any information provided in making investment decisions. By attending any Wealth By Choice Pty Ltd or associated companies events or reading or viewing any Wealth By Choice Pty Ltd or associated material, you are implicitly agreeing to the conditions set out above.

Trading Edge is a registered trademark and is used under license by Wealth By Choice Pty Ltd, Wealth By Choice LLC, Life Success Productions Pty Ltd.

© 2007 Wealth By Choice Pty Ltd, all rights reserved.

David Schirmer's All Ordinaries Index (XAO) Report - 23 July 2007

Welcome to my new Australian All Ordinaries Index Report. This report is in no way indicative of what individual stocks will do but rather a general ‘crystal ball’ of overall market movements. Individual stocks often do not move in the same direction or the same magnitude as an index. To know what stocks to buy or what to sell you must do your own study and research. Please read the disclaimer below.

The Australian stock market has had a huge bull run since March 2003. It has risen from a low of 2,666.3 in March 2003 to 6,469.2 this month (July 2007) … that’s a 243% total increase or around 24% per year rise.

That means if you knew nothing about the stock market other than to purchase stocks in the top 100 companies, you would have achieved a similar return. If you have been applying the Complete Stock Market Home Study Course (http://www.thecompletestockmarketcourse.com/) rules then your portfolio is up around 34% per annum or a total increase of 322%.

Here are some interesting facts:

• In 2000, when the Aussie Dollar was in the mid 60’s I predicted it would drop to 45 cents … it fell to 47.7 cents!
• In 2003, when the Australian All Ordinaries Index (XAO) was at 2,700 I predicted that it would go above 5,400 points in a resource lead boom!
• On August 1, 2004 I wrote “I have an overall strong bullish bias for the Australian All Ordinaries Index …”
• On November 28, 2005 I wrote: We are in the early stages of the biggest bull run in the history of the Australian stock market! Since then the Australian All Ordinaries Index (XAO) has risen over 1,800 points.

So you are probably asking “Ok, well what do you think it will do for 2007-08?”

I will answer that question in full in my report “What Will Happen In The Stock Market In 2007-08; Are You Ready?” For now, let’s have a quick look at the All Ords shorter term.

Currently the All Ords is in a period for a major decline, that period lasts through until October 2008. The thing we should be aware of is that some time between now and October 2008 the market has an extremely high probability to have a tumble. The shorter term cycles will be affected because of the long term potential decline.

That said, my bais is that the market still has further to climb. It has made a series of weekly highs around 6,426 - 6,469 which means there is considerable resistance there. The All Ords has a 22-week cycle from trough (low) to trough and it is currently in week 20. That indicates a short term drop of 316 - 556 points over the next 2-3 weeks.

Minor support levels for this decline are 6364, 6259, 6153, and 5912. Major support is at 6203 and 6048 ... and ... A highly probable date for the 22-week cycle low is August 3-6, with minor reversal dates on July 26 and 30.

If it break through the all time high and closes above it, I expect a final fast run up before it tips over to complete its decline into the 18-year cycle low.

Next report out on Monday, July 30.

Yours in abundance,

David Schirmer

The LIVE Complete Stock Market Course on DVD and CD plus 2007-08 Report: http://www.thecompletestockmarketcourse.com/

Discover The Time Proven Wealth Secrets :
http://www.7stepstounlimitedwealth.com/


Disclaimer
The training and education services provided by Wealth By Choice Pty Ltd (ACN 112 230 958) involve the supply of factual information about securities and commodity markets only. It should not be assumed that the methods, techniques or indicators presented will be profitable or that they will not result in losses. Past results are not necessarily indicative of future results. The training and education services do not involve any recommendations in relation to your personal financial circumstances or investment needs and does not provide any investment advice. Examples presented are for educational purposes only. Any stock, option, warrant, CFD or futures contract mentioned are not a recommendation to buy, sell or hold but merely a study of past performance.

Before making any investment or trading decisions you should obtain advice from a licensed securities or financial advisor and consider with or without the assistance of a securities or financial advisor, whether the advice is appropriate in light of the particular investment or trading needs, objectives and financial circumstances of the prospective investor or trader. Wealth By Choice Pty Ltd and its representatives and officers will not accept liability for any loss, damage or expense incurred or suffered by you if you rely on any information provided in making investment decisions. By attending any Wealth By Choice Pty Ltd or associated companies events or reading or viewing any Wealth By Choice Pty Ltd or associated material, you are implicitly agreeing to the conditions set out above.

Trading Edge is a registered trademark and is used under license by Wealth By Choice Pty Ltd, Wealth By Choice LLC, Life Success Productions Pty Ltd
.
© 2007 Wealth By Choice Pty Ltd, all rights reserved.

This work is copyright. Apart from any use permitted under the Copyright Act, no part may be reproduced by any process or any other exclusive right exercised, without permission of David G Schirmer of Victoria, Australia.