Month: September 2011

DAX and Siemens

Hamilton

dax sept 2011 si sept 2011

One would expect the Dax and Siemens to be dancing to the same tune, more or less. There are slight differences but in the main they go up and down at about the same time and pause at around the same time. Stylized in the two charts above, both clearly made A-B-C corrections, retracing similar proportions of their losses into March 2009.

The Dax needs to drop to about 5120 to retrace 62% of the rally, for Siemens the number is about $81 . Both have a count that would suggest that wave 3 is about to complete. A month of sideways movement could then be expected  for wave 4, and then 5 down should take both the Dax and Siemens to those targets which also correspond, roughly, to the level of the B-wave. In detail;

dax sept 2011 d si sep 2011 d

All of this is just wave 1 down!!!

Global Dow

Hamilton

GDOW

You may want to enlarge this. I ran out of colors so there are only 17 countries and I took a good deal of artistic license putting this together so it is far from perfect. Colgate-Palmolive is not a country but it might as well have been. On average the markets, at their recent lows (not today!), were pretty well at the level of the b-wave of the a-b-c counter-trend rally that retraced an almost precise 62% of the drop of 2008/2009. Expectations now should be focused on wave 4 of previous degree at about 700. The timing would be about a year from now, a little less so perhaps July, 2012.

Colgate should break down any moment.