World Market Analysis
October 2004

 SoAmerica: •Brazil: short traders whipsawed for small
loss . Traders then bot at 23,220. Rise above 8-mos
inverted H&S base. If out, buy mini size at mkt. Take ½ profits
at 26,950 & use TPS on rest. Sell, or sell short on 1-dc below
21,500; stop: 2-dc over 23,250. Take ½ profits at 18,500.

Europe: •Belgium: explosive breakout from Mar-Aug
ascending triangle. Traders took ½ profits at 2650 after buying at 2550 ☺. Use squeaky tight TPS on rest. Sell short mini size on 2-dc below 2620; stop: 1-dc over 2700. Take ½ profits at 2500. •France: false breakdown from Jan- Aug trading range. Shorts exited via stoploss. Scalper’s bot mini size at 3673 for 3800 profit/sell target; stop: 1-dc below 3625. Re-buy 3-dc over 3820; stop: 2-dc below 3715. Take ½ profits at 4050. Sell short a rally that fails at or below 3820; stop: 2-dc over 3820. Take ½ profits at 3650 (if short at higher levels) &/or 3550. And/or, sell short 2-dc below 3480 for 3260 profit target; stop: 2-dc over 3575.
•Germany: short traders exited via stoploss. Nimble traders then bot at 3953 for run towards 4150 profit/sell target;
stop: 1-dc below 3840. Mini buy more cue: 2-dc over 4000; stop: 2-dc below 3900. Major buy cue on rise above 4155. Sell short a rally that fails at or below 4150; stop: 2-dc over 4150. Take ½ profits at 3900 (if short at higher levels) &/or 3730. And/or, sell short 2-dc below 3630 for 3315 profit target; stop: 2-dc over 3785. •Italy: short seller traders exited via stoploss. Rally to major resistance. Buy bit on 3-dc over 21,400; stop: 2-dc below 20,930. Take ½ profits at 22,150. Use TPS to follow upside. Sell short a rally that fails at 21,400; stop: 3-dc over 21400. Take ½ profits at 20,600, ½ at 20,000. •London: bearish broadening top, or bullish rise above 9-mos trading range? Short traders exited via stoploss. Gamblers then bot at 4563. If out, buy strength after dip that holds on/above 4550; stop: 2-dc below 4500. Take ½ profits at 4750 & use TPS on rest. Sell short mini size on 2-dc below 4500. Take ½ profits at 4300. Sell again below 4260 for 4100 profit target. •Netherlands: persistent pullback to neckline of 12-month H&S top. Traders are short betwn 316 & 345; stop: 1-dc over 340. Take ½ profits at 280. Gamblers buy small size on 1-dc over 340; stop: 1-dc below 325. Take ½ profits at 364.•Switzerland: poss 3-month reverse H&S base. Traders are short betwn 5350 & 5641; stop: 1-dc over 5600. Sell more on 2-dc below 5400 for 5130 profit target. Gamblers buy foothold longs at mkt. All buy 2-dc over 5600 for run towards 5890 profit/sell target; stop: 1-dc below 5400. Keep it tight.

 SoAfrica: shorts exited via stoploss . 2-month bearish
upwedge advises prudence. Long traders took ½ profits
at 11,400 after buying at 10,750 ☺. Use TPS to lock in gains on
rest (raise daily). Next noteworthy bear cue: 2-dc below 10,500.

 Asia/Pac Rim: •Australia: per HSL642, traders went
long at aprox 3520; take full profits at mkt ☺ (or use tight TPS to follow upside). Gamblers re-buy strength after dip that holds on/above 3530-3565 support band; stop: 1-dc below 3470. Take ½ profits at 3720. Sell short mini size on 2- dc below 3470; stop: 2-dc over 3550. Sell again below 3335. Take ½ profits at 3250. •Hong Kong: possible 5-month bearish upwedge. Per HSL642, traders are long betwn 12,793 & 13,225 for run towards 13,885 profit/sell target. Sell, or sell short on 2-dc below 12,850; stop: 2-dc over 13,210. Sell again on break below 11,750. Take ½ profits at 12,050, ½ at 11,150. •Japan: testing lower boundary of 5-mos symmetrical triangle. Per HSL642, traders sold short at 10,909; stops no higher than 2-dc over 11,330. Take ½ profits at 10,100,
½ at 9600. Gamblers buy small size at mkt; stop: 1-dc below
10,595. Next major buy cue: 2-dc over 11,660; stop: 2-dc below
11,200. Take ½ profits at 12,200. •New Zealand: (NZSX 50): per HSL642, traders bot at 2760 (or better). Take full profits at 2895 (or use TPS to follow upside). Needs 2-dc below 2700 to justify short sell trades; stop: 2-dc over 2800. Take ½ profits at 2560, ½ at 2425. •Singapore: per HSL642, traders bot at aprox 1900. Take ½ profits at mkt ☺ & use TPS on rest. If out, look to buy strength after dip that holds on/above 1900 support; stop: 2-dc below 18.40. Next major sell cue: 2-dc below 1800.