Austrailian Market

8/10/2019 Austrailian Market

1/26

ROBERT D. MCHUGH, JR., Ph.D.

International/Australia Daily Market Forecast

An Educational Publication of Main Line Investors Inc.

P.O. Box 1026

Issue No. 1803 Email Address:

Kimberton, PA 19442 Thursday October 24th, 2013 [email protected]

SUMMARY DAILY STATISTICS FOR THURSDAY OCTOBER 24th, 2013

Australia SP ASX 200

Closing Price Demand Supply Purchasing

Date SP ASX 200 Power Pressure Power Indicator

Oct17th5,283.10Up3to367Down2to376Up1to7Oct18th5,321.50Up4to371Down4to372Up2to5Oct21st5,351.80Up3to374Down3to369Up2to3Oct22nd5,373.10Flat0at374Flat0at369Up1to2Oct23rd5,356.10Flat0at374Up1to370Down1to3

Oct24th5,372.90Flat0at374Down3to367Flat0at3

Summary of McHughs Proprietary SP ASX 200 Buy/Sell Signals

Fullest Extent of

Index Term Signal Date Last Given Index Move Since Signal

Purchasing Power Indicator SPASX200ShortBuy Oct15th,2013Rose0Points(0.0%)

30 Day Stochastic SPASX200ShortBuy Oct17th,2013Rose0Points(0.0%)

10 Day Average Short-term Advance/Decline Crossover Signals

Oct 24th Fullest Extent of

Index A/D Indicator Signal Date of Signal Index Move Since Signal

SP ASX 200 + 27.9 Buy October21st,2013New Buy Signal

The Australia SPASX 200 rose 16.80 points, or 0.31 percent, closing at 5,372.90 Thurs-

day October 24th, 2013.

Volumefellto53percentofits10dayaverage.Upsidevolumeledat62percent,withadvancingissuesat58percent,withupsidepointsat70percent.

Demand Power

was flat at 374, while Supply Pressure fell 3 to 367 ,tellingusThursdaysrallywasweakandduetoalackofsupply.

TheDemandPowerIndicatorintersectedtheSupplyPressureIndicatorFriday,October18th,2013,triggering an Exit Short positions signal, andremainsthereWednesday.Our keytrend-finder indicators (other than DP/SP) moved to a new buy signal October 17th.ThePur-chasing Power Indicator rose to negative 2.82 Thursday, remaining on a buy signal from Octo-

ber 15th, needing to fall below negative 8.41 for a new sell. The30 day Stochastic Fastwas60.22Thursday,abovetheSlowat51.69

remaining on a buy signal from October 17th.

TheFasthastofall10pointsbelowtheSlowforanewsellsignal.

Page 1

Visit Our Website At www.technicalindicatorindex.com


2/26

Page 6 of 6

MCHUGHS FINANCIAL MARKETS FORECAST & ANALYSIS Issue No. 7

Bonds and Interest Rates:

Page 2

MCHUGHS INTERNATIONAL MARKET REPORT Thursday, October 24th, 2013

The 10 day average Advance/Decline Line Indicator rose to positive + 27.9 Thursday,

remaining on a buy signal from October 21st, 2013, needing to fall below negative -10.0

threshold necessary for a new sell.

For I k n ow t h e p l a n s I h a v e f o r y o u , " d ec l a r e s t h e LORD ,

" p l a n s t o p r o sp er y o u a n d n o t t o h a r m y o u ,

p l a n s t o g i v e y ou h ope an d a f u t u r e.

Je r em ia h 29 :11

Join our Platinum Trading Program with a reduced One Year Deal + 1 Bonus Month

Free for $2,195 (was $2,995) a 27 percent savings, (or save an

additional

10 percent if pay-

ing by check, only $1,975). Mail check to Main Line Investors, Inc., P.O. Box 1026, Kimber-

ton, PA 19442 Please include your email address with payment. Good through 10/31/13.

Status of Demand Power/Supply Pressure Key Trend-finder Indicator

First Current Current Fullest Extent of

Index Term * Signal Date of Signal Demand Pr. Supply Pr. Index Move Since Signal

SPASX200Short Exit Short 10/18/2013 374367Fell0Points(0.0%)*Weconsideranewentrypointforasignalthedaywhenonemeasurecrossesmorethan10pointsabovetheother.Weliketoexitwhen(orbeforeifconservative)thetwomeasuresreturntoanintersection.

SPASX200 vs: Demand Power & Supply

Pressure July 2013 to October 2013

2800.00

3800.00

4800.00

7/24/13 8/24/13 9/24/13 10/24/13

330

380

430

480 SPASX200

SPASX200

Demand

Power/

Supply

Pressure

Supply Pressure

Demand Pow er

copyright 2013 Robert McHugh, Ph.D.

When Demand Power Crosses above the Supply Pressure Line by 10 points, we get aBuy Signal. When Supply Pressure rises above Demand Power by 10 points, we get a Sell

Signal. Exit Sign als occur when DP or SP lines return to intersecttion after an entry signal.

We received anExit ShortPositions Signa l Octobe r 18th, 2013

Enter

Long

7.10.13

Enter

Short

8.29.13

Enter

Long

9.2.13 Enter

Short

9.30.13

Exit

Short

10.18.13


3/26



Page 3


Canadas TSX is forming a possible 3-3-5 Flat for wave {IV} down. The middle wave

(B) up needs its final wave C-up to finish. Once (B) tops, a powerful wave (C ) down will be

next.

i

ii

iii

iv

5, 5 of (5) of Vof (V) {III}

v, 3

1

2

Weekly Bar ChartLondons FTSE

As of 10/24/13

4

(A)

(C ), {IV}

C, (B)A

B

The Weekly Full

Stochastics

Overbought

Alt. {III}

Alt. B


4/26



Page 4


Londons FTSE is forming a possible 3-3-5 Flat for wave {IV} down. The middle wave

(B) up is finishing. A powerful wave (C ) down will be next.

Often in the past, U.S. Markets will follow the FTSE. In other words, the FTSE is often

an early warning leading indicator for the price path U.S. Markets will follow.

i

ii

iii

iv

5, 5 of (5) of Vof (V) {III}

v, 3

1

2

Weekly Bar Chart

Londons FTSE

As of 10/24/13

4

(A)

(C ), {IV}

C, (B)

A

B

The Weekly Full

Stochastics on a

Buy Signal.

Alt. {III}


5/26



Page 5


As of 10/24/13

(A) (C ), {IV}

Londons FTSE

The Weekly Full

Stochastics are on a

Buy Signal.

C, (B)

B

A

Alt. {III}

As of 10/24/13

Londons FTSE

The Daily

Full Stochastic is on

a Buy Signal.

C, (A)

BC, (B)

A

A

B

Alt. {III}


6/26



Page 6


4i

ii

iii

iv

v, 3

(4)

1

2

Weekly Bar Chart

Germanys DAX

As of 10/24/13

The Weeky Full


Buy Signal.

5, 5, of (5) of Vof (V), {III}

(A)(C ), {IV}

C, (B)

B

A

Alt. {III}

The Daily Full Stochastics

on a Sell signal.

As of 10/24/13

Vof (V), {III}

(5), C, (A)

B

C, (B)

A

(E) A

B

(1)

(2)

(3)

(4) (A)

(B)

(C)

(D)

(3)

Alt. {III}


7/26



Page 7


4

i

ii

iii

iv

v, 3

(4)

1

2

Weekly Bar Chart

Canadas Toronto

Stock Exchange

As of 10/24/13

The Weeky Full


Buysignal.

5, 5, of (5) of Vof (V), {III}

(A)

(B)

(C)

Possible Head &

Shoulders Top with a

Downside Target of

7,000ish.

Alt. {III}

As of 10/24/13

Vof (V), {III}

5, (A)

2C, (B)

1

A

B

Canadas Toronto

Stock Exchange

Daily Bar Chart

3

4


on a Sell signal.

(C)

Alt. {III}


8/26



Page 8


There is a massive Head & Shoulders Top finishing in Canadas TSX,

with a downside target of 8,000ish. This chart is the market telling us a global

stock market plunge is coming, perhaps is starting now, and could last several

years.

Left Shoulder

Right Shoulder

Head

Massive Head &

Shoulders Top form-

ing in Canadas TSX

with a downsidetarget of 8,000ish.


9/26



Page 9


The TSX may be starting wave 3-down, a powerful decline. The alternate

is that wave c-up of 2-up needs one more strong rally leg to finish.

e, a

E, (B)

e, 1

c

d

c, 2

a

b

a

b

c

d

3

The Daily Full


Sell signal.

Canadas TSX


10/26



Page 10


Europes Dow 50 Stock Average, the STOX5E, completed its Grand Su-

percycle degree wave {III} top in 2000. Since then we have witnessed the start

of Grand Supercycle Degree wave {IV} down in Europe with the worst to come,

which is interesting since it could be a glimpse into how the Grand Supercycle

decline will start in U.S. markets. It is difficult to discern what degree the waves

since 2000 have been in, whether they are in the first Supercycle degree wave

(A), of an (A) down, (B) up, (C ) down move for {IV} down or are in the third de-

gree of (C ) down. Due to the need for proportionality of waves, I am labeling

the above moves since 2000 as the three waves for Supercycle degree wave

(A) down, with the third wave for (A) down, cycle degree Cdown underway.

That Cycle degree C-down is a five wave decline and the first of those five

waves came from 2007 through 2009. The rally since is corrective wave (2)-up,

which is concluding. Next will be a powerful and disastrous wave (3)-down of

C-down of (A) down.

{III}

A

B

(1)

C, (2)

A

B

(3), C, (A), {IV}

Degrees of Trend Key:

{IV} Grand Supercycle(A) Supercycle

C Cycle(3) Primary

A Intermediate

The Weekly Full

Stochastics are

Overbought.


11/26



Page 11


TheDowJonesEuropeStoxx50iscompletingalargeRisingBearishWedge,withtherecentrallypoppingabovetheupperboundary,whichis

knownasanormalthrowoverwhichtypicallyoccursattheveryendofthepattern.ThispatternistellingusthatEuropesstockmarketissoongoingtofallhard,andpossiblycrash,thestartofwave(3) down.

(1)

e, C, (2)A

B

(3), C, (A), {IV}

The Dow Jones

Euro STOXX 50

The Dow Jones

Euro STOXX 50

is completing a

Rising Bearish

Wedge for wave Cup, with the typical

overthrow wave

occurring now.

This pattern is tell-

ing us that this

index is very close

to crashing.

Trouble is coming

to world markets

and it may start in

Europe.

a

b

c

d


12/26



Page 12


TheDowJonesEuropeStoxx50hasjustcompletedaJawsofDeathStockMarketTop.Astrongdeclineshouldbeginsoon,thestartofwave(3)

down.


(1)

c, C(2)A

B

The Dow Jones

Euro STOXX 50

The Daily Full

Stochastics are

Overbought, on a

Sell signal.

The Dow Jones

Euro STOXX 50 Has

Just Completed a Jaws

of Death Top Pattern

from 2012. This is asecond, confirming

pattern telling us that

A strong Decline will

begin soon in Europes

stock markets.a

b


13/26



Page 13


TheStoxx50hasjustcompletedaJawsofDeathStockMarketTop.Astrongdeclineshouldbeginsoon,thestartofwave(3) down.

C(2)

The Dow Jones

Euro STOXX 50 The Dow Jones

Euro STOXX 50 Has

Just Completed a Jawsof Death Top Pattern

from 2012. A strong

Decline will begin soon

in Europes

stock markets.


14/26



Page 14


Israels TA100 stock index is finishing wave 2 up, which will be followed

by wave 3 down, which should take prices eventually to the 800ish area.

(1)

B

(2)

(3)

(5) 1

(3)

The Tel Aviv 100

Indexsprice action

looks like it iscompleting wave (C)

which means a sharp

decline is coming

later in 2013.

(1)

(2)

3

(A)

(5), C, (B)

(B)

(C), 2(4)

The Daily Full

Stochastics are

Overbought, on a

Sell signal.


15/26



Page 15


Aboveweshowwhatwebelieveisthemostlikelyscenario,allowingforthemulti-decadeJawsofDeathtoppatterntoreachitsupperboundaryfor

completion.ItsuggestsanAscendingBroadeningWedgetoppatterniscom-pletingnowintheIndustrials,apatternthatstartedattheendofOctober2011.Itisana-b-c-d-e pattern,withwaved-downfinished,andthefinalwavee-uprallyunderway. ThismeanstheIndustrialscouldreach17,000ishsometimein2014,or2015,whichwouldproducethetopforGrandSupercycledegreewave{III} up. ThistopshouldarrivewithaBearishdivergenceintheNYSECumulative

Advance/DeclineLine,meaningstockshitanewhighbuttheA/Ddoesnot.ThatwouldbeakeywarningofGrandSupercycledegreewave{IV}simminentdecline,whichwillbedangerousandshouldbehereby2014or2015,depend-inguponhowfasttheriseisintotheJawsofDeathsrisingupperboundary.TheIndustrialshavetochasearisingtarget,soaslowascentcouldpushcom-pletionofthepatternoutfurtherintime.

A

c, B

c, e, C, (E) of Vof (V)

b

c, c

a

d

a

b

a

b

Here is Our Top Scenario, a Rising Broadening

Wedge Top, allowing for one more new high in stocks.

If this is occurring, the top should arrive by late 2012.

a

b

It is possible wave b-down is

forming a 3-3-5 Flat pattern

and is in its final five wave c-

down decline.

Daily Full

Stochastics are

Overbought.

c

x

a

b


16/26



Page 16


The above chart shows that Emerging Markets are starting wave (C )

down.

What event is out there that could turn the entire world stock market down

in 2013? We can only speculate, but a war in the Middle East would do the

trick, especially if it involved Israel, or nuclear war with North Korea, or an as-

teroid hit, sun storms, or an earth axis rotation shift. Something is coming, and

it is going to disrupt everything.

(5), C, (A)

C, (B)

(C ) A

B

(4)

(A)

(B)

(1)

(2)

(3)


Sell Signal,

On a Sell.

{III}

(C)

(1)

(2)


17/26



Page 17


WorldEmergingMarketsareindeeptroubleaccordingtothispricepat-tern.AlargeHead&Shoulderstopiscompletingwithadownsidetargetof500ish,50percentbelowwherepricessitnow. Thispatternwarnsaworldstockmarketcrashcouldcomein2014.

Left Shoulder

Possible Head &

Shoulders Top with a

Downside Target of

500ish.Right

Shoulder

Head


18/26


19/26



Page 19


Monthly Chart

Hong Kongs

HSI

The Monthly Full

Stochastics are

On a Buy Signal.

Left Shoulder

RightShoulder

Head

a

5, (5) of Vof (V), {III}

(3)

The Weekly

Full Stochastic

On a sell.

(A)

(B)

(C ), {IV}

c, (4)

b

1

2

3

4

Hong Kongs

HSI


20/26



Page 20


The Weekly Full

Stochastics are

On a Buy Signal.

Frances CAC

Weekly

a

5, (5) of Vof (V), {III}

(3)

(A)

(C ), {IV}

c, (4)

b 1

2

3

4

China Monthly

Chart

The Monthly Full

Stochastics are

On A Sell.

C, (B)A

B


21/26



Page 21


Australia SP/ASX 200 30 Day Stochastic

Buy/Sell Indicator

3000

3500

4000

4500

5000

5500

6/24/13 7/24/13 8/24/13 9/24/13 10/24/13

0.00%

20.00%

40.00%

60.00%

80.00%

100.00%

120.00%

140.00%

160.00%

180.00%200.00%

For October 24th, 2013: Fast 60.22 Slow 51.69

A Short- te rm Measur e of Mo ment um Chan ge s Co mparing th e Perc en t of

SP/ASX 200 Stocks Above Thei r 30 Day MA With a Slower 9 Day MA of Same

SP/ASX 200

Fast

Slow

Overbou ght > 80%

Over sold < 15%

A Buy Signal Was Gene rate d o n Octob er 17th, 2013Sell Signal

Buy Signal

SP/ASX

200

Stoch %

Fast/Slow

copyright Robert McHugh, Ph.D. 2013

SP ASX 200 Purchasing Power Indicator

4000.00

4500.00

5000.00

5500.00

6000.00

7/24/13 8/24/13 9/24/13 10/24/13

-30.00

-10.00

10.00

PPI is a Short-term Momentum Measure of Purchasing Power, Generating Buy and Sell

Signals When Changes Suggest Sustainable Multi-week Moves are Likely.ASX 200 PPI

Sell Signal

Buy Signal

Octobe r 24th, 2013's ASX 200 PPI is nega tive - 2.82

PPI

ASX 200

A Bu y Sig na l Was Regi stered on 10/15/2013

copyright 2013 Robert D. McHugh, Jr., Ph.D.


22/26



Page 22


SPASX200 10 Day Moving Average

Advance/Decline Line vs. the SPASX200

3000.00

3500.00

4000.00

4500.00

5000.00

5500.00

7/24/13 8/24/13 9/24/13 10/24/13

-60

-40

-20

0

20

40

60

80

100

120

Decisive Cross-overs Above the Zero Line Usually are Signals of the Start of a Multiweek

Rising Trend. Cross-unders Belo w the Zero Line Sig nal the Start of Declini ng Trends.

SP ASX 200

ASX200

A/D

ASX 200

Price

A/D

A Dec isi ve Crossin g

Woul d Move to +/- 10copyright 2013 Robert McHugh, Ph.D.

Octobe r 24th, 2013's 10 day A/D is Positive + 27.9

on " Buy" from October 21st, 2012

Left Shoulder

Right

Shoulder

Head

Monthly Chart

The Monthly Full

Stochastics are

On a Sell Signal.

A Decisive Drop Below

3,000 will confirm this

pattern, with a down

side target of 500,believe it or not.

This also suggests a

catastrophic wave (C )

down is coming.


23/26


Page 23


Fo r I k n ow t h e p l a n s I h a v e f o r y o u , " d ecl a r es t h e LORD ,

" p l a n s t o p r o sp er y o u a n d n o t t o h a r m y o u ,

p l a n s t o g i v e y ou h ope an d a f u t u r e.

Je r em ia h 29 :11

OCTOBER$SPECIALS

3 Months for $59, or9 Months for $89

12 Months for $300

14 Months for $189, or* 25 Months for $429 ($325 if check payment)*

Goodthrough Sunday, October 27th, 2013Simply go to www.technicalindicatorindex.com and

click on the Subscribe Today or Renew Today buttons.

(E), C, (B)

(A)

A

(C) B

(B)

(C)

(D)(A)

(B)


24/26

Page 6 of 6



Page 24

Bottom Line: The SPASX200 key trend-finder indicators are on abuy signal.


20 11 Con ser va t i v e Po r t f o l i oT r a n sa c t i o n s :

You c an v i ew ou r 2 011 Con s er v a t i v e Po r t f o l i o T r a n sa c t i o n s a t t h e T r a n s -

a c t i o n s bu t t o n u nd er t h e Con s er v a t i v e Po r t f o l i o H eade r a t t h e hom e page a t

w w w .t ech n i c a l i n d i c a t o r i n d ex .com

J esu s sa i d t o t h em , I am t h e b r ea d o f l i f e ; h e w ho c om es t o M e

sha l l n o t h u nge r , a n d he w ho be l i ev es i n M e sha l l n ev er t h i r st .

F o r I h a v e com e d ow n f r om h ea v en ,

F o r t h i s i s t h e w i l l o f M y Fa t h er , t h a t ev er y o n e w h o b eh o l d s

t h e Son an d be l i ev es i n H im , m ay ha v e et er n a l l i f e;

a n d I M y s el f w i l l r a i se h im u p o n t h e l a st d a y .

J o hn 6 : 3 5 , 3 8 , 4 0

An Exchange Traded Fund for Australia is symbol EWA

Here are the Long Position symbols for Exchange Traded Funds for the Major Indices:This is not trading advice. We recommend you conduct your own research and consult

with your investment advisor before entering into any trades with these instruments.

DIA Dow Industrials IYT TranniesSPY S&P 500 GDX HUI Amex Gold Bugs*QQQ NASDAQ 100 GLD GoldIWM Russell 2000 SLV SilverEWA Australia UUP U.S. DollarUSO U.S. OilUDOW Ultra Pro Dow 30 3X (Leveraged ETF Targeting 300% of Daily Move)

UPRO Ultra Pro S&P 500 3X (Leveraged ETF Targeting 300% of Daily Move)TQQQ Ultra Pro QQQ NDX 100 3X (Leveraged ETF Targeting 300% of Daily

Move)

* No t e : The GDX ac t ua l l y t r a c k s t he GDM , a g r oup i n g o f 45 m i n i n g s t o c k s, bu t t h e GDX h asv er y h i g h c o r r el a t i o n t o t h e HU I s o we men t i o n t h a t a s a su i t a b l e ETF f o r t h e H U I .


25/26

Page 6 of 6



Page 25

J esu s sa i d t o t h em , I am t h e b r ea d o f l i f e; h e w ho c om es t o M e



F o r t h i s i s t h e w i l l o f M y Fa t h er , t h a t e v er y o n e w h o b eh o l d s

t h e Son an d be l i ev es i n H im , m ay ha v e et er n a l l i f e;a n d I M y s el f w i l l r a i se h im u p o n t h e l a st d a y .

J o hn 6 : 3 5 , 3 8 , 4 0

Here are some symbols for Exchange Traded Funds for Going Short the Major Indices:(These instruments should rise in value as prices decline)

This is not trading advice. We recommend you conduct your own research and consult

with your investment advisor before entering into any trades with these instruments.

DXD Dow Industrials (2X) SH S&P 500PSQ NASDAQ 100 RWM Russell 2000TBT Long-term U.S. Treasuries UDN U.S. DollarDGZ Gold ZSL SilverSDOW Ultra Pro Short Dow 30 (Leveraged Targets 300 % Daily Move)SPXU Ultra Pro Short S&P 500 (Leveraged Targets 300 % Daily Move)SQQQ Ultra Pro Short QQQ NASDAQ 100 (Leveraged Targets 300 % Daily Move)


Amazons # 1 Ranked New Release Investing Book

Now Available at www.amazon.com

Purchase Direct Link: http://tinyurl.com/lypv47v


26/26

Page 6 of 6



Rober t McHugh Ph. D. i s Presi dent and CEO of Mai n Li ne I nvest or s, I nc. , ar egi st ered i nvest ment advi sor i n the Commonweal t h of Pennsyl vani a, and canbe r eached at www. t echni cal i ndi catori ndex. com. The st at ement s, opi ni ons,buy and sel l si gnal s, and anal yses pr esent ed i n t hi s newsl et t er ar e pr o-vi ded as an i mpersonal general i nf ormat i on and educat i on servi ce onl y.Opi ni ons, est i mat es, buy and sel l si gnal s, and pr obabi l i t i es expr essedherei n const i t ut e t he j udgment of t he aut hor as of t he date i ndi cat ed andar e subj ect t o change wi t hout not i ce. The i nf or mat i on cont ai ned i n t henewsl et t er i s expr essed i n good f ai t h, but i t s accur acy i s not guar ant eed.Not hi ng cont ai ned i n t hi s newsl et t er i s i nt ended t o be, nor shal l i t beconst r ued as, i nvest ment advi ce, nor i s i t t o be r el i ed upon i n maki ng anyi nvest ment or ot her deci si on. Pr i or t o maki ng any i nvest ment deci si on, youar e advi sed to consul t wi t h your br oker , i nvest ment advi sor or ot her appr o-pr i at e t ax or f i nanci al pr of essi onal t o det er mi ne t he sui t abi l i t y of anyi nvest ment . Nei t her Mai n Li ne I nvest or s, I nc. nor Rober t D. McHugh, J r . ,Ph. D. Edi t or shal l be r esponsi bl e or have any l i abi l i t y f or i nvest ment de-ci si ons based upon, or t he r esul t s obt ai ned f r om, t he i nf or mat i on pr ovi ded.

Copyr i ght 2013, Mai n Li ne I nvest or s, I nc. Al l Ri ght s Reser ved.

J esu s sa i d t o t h em , I am t h e b r ea d o f l i f e; h e w ho c om es t o M e



F o r t h i s i s t h e w i l l o f M y Fa t h er , t h a t e v er y o n e w h o b eh o l d s

t h e Son an d be l i ev es i n H im , m ay ha v e et er n a l l i f e;

a n d I M y s el f w i l l r a i se h im u p o n t h e l a st d a y .

J o hn 6 : 3 5 , 3 8 , 4 0

OCTOBER$SPECIALS

3 Months for $59, or9 Months for $89

12 Months for $30014 Months for $189, or

* 25 Months for $429 ($325 if check payment)*

Goodthrough Sunday, October 27th, 2013Simply go to www.technicalindicatorindex.com and

click on the Subscribe Today or Renew Today buttons.


Austrailian Market

Documents

Transcript of Austrailian Market