Welcome to my Stock Market Indices 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.
Two weeks ago I wrote, “If the market falls through 6469 then retraces back up and fails to close above that level before a continued decline we can be pretty certain that the 18-year cycle high is complete.” Well, the Australian All Ordinaries Index fell through and closed below 6469 last Wednesday, November 21. It hasn’t rebounded yet so we will see this week whether it swings up and fails to take out that resistance level, if it can’t break above 6469 and starts to fall again beware!
I just finished conducting our last Professional Traders Workshop for 2007. I was asked there if the stock market chart could predicted who might win the Australian election … I suggested even though I didn’t like it for the sake of business and economy, the charts showed a labour government coming to power – and it proved right again. This does not bode well for the stock market.
Australia has experienced a solid economy for many years now with the stock market rising 258% since March 2003. Many people who have got into the stock market over the past 4 years think this rise is normal and have been making money without any education, they are using significant amounts of borrow funds as well and have little stock market knowledge or experience. With Reserve Bank interest rates continuing to rise to between 8.75% and 11.25% by the end of 2008 (a prediction I made back in 2003), many of these people will be paying more home loan interest, start losing money on the stock market, and panic! Should be interesting to watch!!
The XAO is in week 15 of its 22-week Primary Cycle. Further weakness and confirmation of the 18-year cycle decline should continue this week.
I mentioned in my last report that “the next reversal date is Thursday, November 15. The major reversal period in December is 24 through 28 (a Primary Cycle or greater peak or trough)”. The market did reverse down on November 15, this week I am keenly watching today (Monday 26 November). It could turn and head up, however my bias is a small counter trend up (1-3 days) followed by a continued decline. The reversal dates this week are Monday November 26 and Friday November 30.
Areas of support for the All Ordinaries are 6345, 6252, 6182 and 5844. Points where the All Ordinaries could experience resistance advancing higher are 6469, 6798, 6873, and 6964.
I hope to see many of you at my “How To Apply The Secret” seminars around Australia over this next 2 weeks (see details below).
Next report out on Monday, December 3.
UPCOMING SEMINARS:
“How To Apply The Secret” seminar
http://www.thesecret.com.au/how-to-apply-the-secret-seminar.html
A one-day event that could change your life forever! Here is what a couple of people said about the “How To Apply The Secret” seminar recently in NZ:
“Recognising the poverty consciousness that we have inherited is old hat, but being given the tools to affect changes in our world is priceless!! What a great gift for ourselves, the economy – and our children’s children in all aspects!! Many thanks to all involved.” - Karen Kotze, Journalist, Auckland
“WOW!! Where to start? This is a fantastic seminar. I have been immersed in Bob Proctor material since February 07 and I still had HUGE breakthroughs today!” - Chris Bridgeman, Director, Auckland
Nov 27th - Brisbane (QLD) Bris. Convention Centre - Book Now
Nov 28th - Melbourne (VIC) Rydges Carlton - Book Now
Nov 29th - Adelaide (SA) Adelaide Convention Centre - Book Now
Dec 1st - Sydney (NSW) Citigate Central - Book Now
Dec 4th - Perth (WA) Duxton Hotel - Book Now
Yours in abundance,
David Schirmer
P.S. Check out http://davidschirmer.blogspot.com/ for insights to my Secret Journey.
Terminology
XAO - The All Ordinaries (colloquially, the "All Ords"; also known as the All Ordinaries Index, AOI) is the main index of shares for the Australian Stock Exchange.
Disclaimer
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