Matt Shaw’s Profit Machine – Nov 9th 2011 (Fixed Odds Success)
Oh my, we are set for a right old fall. There you go again Matt, riding your bear horse – so to speak!
I woke up yesterday morning to find the headline that Wall St workers are set to have their pay cut by 20-30% (CNBC).
This seriously does not bode well for my confidence as I now know that not only are the higher order wanting to portray that the new aged city yuppies will feel the pinch among us mortal of men too. Yet, many would argue that the U.S. are salvaging all they can to meet the payments on their ever increasing debt, which is of direct demise from printing money like its toilet roll.
How long will it be until the U.S. cannot even maintain THE PAYMENTS JUST ON THEIR INTEREST alone?
Now… the £/$ (Cable)
After hitting tough resistance right at the (black) 200-day MA line, which seems to have been the double bottom (Sept 22+ Oct 6) objective, I believe that cable will now take up a bearish drop lower, back below the green 20-day MA line and once broken, en-route toward the straight blue line at 1.57.
*click here* pics for blog nov 9th (images for market charts written about today)
The level of 1.5650 is key support which will support the blue line automatically.
If by Friday Nov 11th we see a break above the 200-day MA then I will go long, but I believe a fail of this level up to this point will in itself justify a short; no matter what the precise level.
I am waiting to incept High No Touch trades, with a short of £50 per point as soon as the market dips and holds one extra session below 1.5925 (10-day MA at 1.5975).
I bought the £/$ earlier today, to make a quick £120, but the annoying thing was, it took 10 seconds to sell after I clicked the ‘sell’ button and my profit dropped from £490 to £120.
I then got in an hour later to make up for what had annoyed me with the previous trade. I was in this second trade for LESS than a minute and came out with more than £500 profit!
What is next for this week?
I am selling these markets (equities) as of today. I was just about to sell the Dow last night after I saw a great rally higher into the close. However, volume was not that heavy and the market was only up 100 pts after a ‘great’ intraday (somewhere between the start and the end) rally.
With the Godfather among them (Berlusconi) promising to resign as soon as austerity measures (agreed with the EU) are passed by Italy’s government.
That will happen, on what scale however, we do not know yet, must like with Greece the market may take a pop higher, but afterward, the ugly background of this drama will come to the forefront. And will Mr. B even resign after that? Probably not – maybe he will hang on? That will hurt markets even more!
Yields on Italy’s debt are set to rise dramatically, but Mr B has survived so much crap before now; is this scenario beyond him now? Well, it has to be.
As I have said, by the time austerity is passed for Italy, we could see a reaction rally, but markets should have sold off a decent amount by that time anyway, so the pop higher will still only rally to levels that are LOWER than we are currently trading at. So, if you are shorting NOW, your stops should be fine and uninterrupted. The best time was last night, but I left, so I will wait through today’s session to wait for the best time.
For the S&P
The market has AGAIN stumbled up against the black 200-day MA line. So, if we drop below the blue 10-day Ma line and sell-off further below the red trend line, you can expect to see lower levels beyond 1220 very quick.
We may then see a snap rally back up toward the green 20-day MA line (1240) for a day or so, but then expect a further drop into the high 1100’s and maybe as low as the LOW 1100’s by Xmas.
Let’s just say that if I see a dip below the red line (10-day Ma) and it holds below there for TWO FULL sessions, then I will be selling this market no matter what! Probably along with the Dow too.
Lastly, onto Gold and baby am I buying this market up until it surpasses $2,000!
When you think about it, what can you do with this precious metal? Just sit back and stare at it!
You can’t eat it, play with it or build houses with it – well actually, it’s going on!
However, when it comes to economic turmoil, to own something as tangible and unique is what it is all about. It’s the next major form of currency for the global population.
I firmly believe that with the dollars demise over the coming months/years, this investment will sky rocket!
Off the top of my head, I read that we are in around 10 trillion worth of debt, with only around 900bln of real cash in circulation.
The U.S. are now mortgaged up to the eyeballs and the bailiff’s are set to drop by as inflation will continue to rise and more dollars are needed. BUT where do they come from?
The U.S. need to accommodate the countless banks they have bailed out over the past 3 years. Again, where does all this money come from?
The government cannot keep creating this cash, without something going down.
Have a long hard think and be logical when assessing the true potential of Gold over the coming years.
I am buying at current levels and I have stated for others to get in and buy around $1600-$1760. Once we break 1820 (next point of resistance after $1760), we should see the test of $2000 and this may well be in conjunction with the crusade lower for ALL stock indices – Perfect timing!
Get ready for the launch – lower!
Matt $haw
