Is the DOW on track? How about the Qs?

It looks like the Dow is right on track from my last entry. In my view it has broken out of it trading range and headed higher. I predict that the DOW will reach 13,3000 by the middle of May. If you look at Figure 1. the short, medium and long pitchforks all intersect on 5/13. We will continue to monitor this and see if I am right on this or not.

Fig.1

According to the Pitchfork, the Qs looks to continue right on track to hit the 50.50 dollar mark by the end of May as I predicted last entry as shown in Figure 2. We will continue to monitor the Qs progress to see if I am right or wrong.

Fig 2.

Next, I want to look at 2 trades I went in to last week. The first one is Figure 3, Western Digital(WDC). I bought the Jan 10 30 call for 8.60 It seems to be headed for 34 dollars per Andrews Pitchfork by the first part of May. I should be out of the trade before then with my 5%min. profit and on to next trade before then. We will see.

Fig.3

The other trade I wanted to go is one that is not going the way I predicted. Yamana Gold, (AUY). Look at the chart in figure 4. As you can see the price has dropped and is starting to move the wrong way away from the median line on the pitchfork. The price ihas fallen below the lower line on the pitchfork. If the price breaks the trend line drawn in yellow then the trend is headed down, not up. I will have to start to manage this position by selling call options against my position. So, much for listening to all the experts that say to buy gold related stocks.

Weekly Pitchfork update on the Market. Happy days Again?

I thought I would change my focus a bit on this blog. I will look to see where the DOW and Qs are headed on a weekly basis using Andrews Pitchfork and Action/Reaction lines. In addition to looking at the the market I will look at stocks that I am looking to buy.

Are happy days here again? First, let's look at the DOW. As I write this entry the DOW is up 170 on the day at 12,532. But is it going to go up or down from here. Well, I can't tell yet from the daily chart. Looking at the chart in Fig 1. we see that the Dow is at a reaction line.

Fig. 1.

It is marked on the chart as R2. The DOW touched the ML of the pitchfork on the 7th of April and has followed the reaction line down since. The high on April 7th was a test of the 12,700 level that seems to be a main level of resistance for the DOW at this time. It has reached this area 3 times since Feb of this year. If we can break though this area I feel it will signal that we are back in an up trend in the DOW. Until then it looks like we will continue to stay in this sideways channel.

We may be able to predict the Dow by looking at the weekly Dow chart. We see in Fig. 2 that if the Pitchfork holds, we will break out of the resistance level I mentioned earlier on the daily chart by the end of April/begining of May.

Fig. 2.

Now for the Qs. Looking at the chart in Fig 3. we can see that the Qs are headed up and if the Pitchfork is right the we should be at $50.50 by late May when the 2 pitchforks intersect.

Fig 3.