TIPS

The FTSE and the DOW

A special report by Pro Trader John Piper

My job at  www.JohnPipersTrading.com is to tell you what is going to happen next. Below is the chart my subscribers received yesterday.

As my subscribers know, the rally came in as expected and my report on 15th should have proven useful to them.

Options expiry is now history and I had thought this may be pivotal

However yesterday's high was seen at 6074, so we are still some way off my targets at 6180/6250.

The chart below shows how we can count five waves up into the high at 6074 but there may still be waves four (down) and five (up) to come.

These moves are not mandatory but there are these supporting factors:

• I would still expect wave C to take out the high of wave A at 6104

• If it does not we should consider the alternative count that we may be seeing a triangle.

• So far FTSE has seen an a-b-c rally for wave C and we still need waves four and five to make this into a five.

• The first leg down off yesterday's high looks like an a-b-c, ie not impulsive

So I am counting this new decline as wave four and it does not look complete.

On the Dow we appear to have seen five waves up off the low at 12269 (15th April) and a pullback looks imminent, but probably only a corrective pullback.

I still look for a significant fall once this wave C rally phase is over. 

 

All the best,

John Piper

BTW I do give tips, as it is what the market wants, but the main purpose of www.JohnPipersTrading.com is to help you develop your trading skills. Give a man a tip and you may feed him for a while, teach him how to trade and he is set up for life. I will be monitoring this situation twice a day on this service.

It goes without saying, or at least it should, that you must control risk on any trade you take. You might prefer to use stops or adopt a different approach. But if it goes wrong get out. Trading is a matter of probability. Traders win because they make more money on their winners than they lose on their losers. So make sure that however much you risk is relatively small compared to the amounts you might win. We all have a different way of approaching markets and we will all employ risk control differently.

Any comments? email john@ttttt.freeserve.co.uk  

Every morning at 10 AM sharp, John Piper publishes a report with the latest movements on major markets and indices and mails it out to members JohnPipersTrading.com. Click here to sign up for JohnPipersTrading.com now.