Weekly Summary and Conclusion, week ended 11/2/2011

SUMMARY & CONCLUSION

TRENDS:

• XJO: long/medium-term - up.
• XJO: short-term - Up
• Dow Industrials: medium-term - up
• Dow Industrials: short-term - up (now in Cloud Cuckoo Land)
• Hang Seng: medium-term trend - down. (Chinese market often leads.)
• Ozzie Dollar: Sideways consolidation. Short-term trend - down.
• Gold in Oz Dollars: Medium-term Trend - down, Short-term trend - up. (Negative for general market.)

XJO currently at 4881.

Major Support and Resistance for XJO: Resistance: 5000; Support 4200 .

Ratio American Bonds:Commodities - Positive for the general market

Seasonalities for February in 3rd Yr of Presidential Cycle favour the upside.

Recent volume pattern on the American market is Negative. (Low Volume followed by a sudden surge upwards.)

XJO Long-term Chart Pattern: Rising bearish wedge. Break upwards - very bullish; break downwards - very bearish. Wait and see.

Next Week: The probabilities for a down side correction have increased.

Any correction is likely to be muted because of Bernanke's money supply (QE2) and the strength of the Presidential Cycle in the 3rd Year.

Monday in America is a holiday. Expect our market to be flat. Tuesday's market may determine the direction for the rest of the week.

The coming week - more weakness. But watch what happens on Tuesday.

As always - that's really just a bit of a guess. Is it better than a coin toss? I'll let you make up your own mind. :)

Good luck

Red