USD/YEN movement forced me to sell out large long position on Nikkei. I had accumulated long Nikkei with average fills of 9200 and stops at 9150. Sold out Nikkei at average fill of 9700. Movement was conforming to projected rally, however USD/YEN meta indicator breaking back below the 86.90 forced provided negative indicator forcing me to sell out longs and go back neutral.
IPC Mexico
Took on a small short position on IPC Mexico
Warning Indicators:
A number of Global Markets have sent warning indicators. The French Cac40 futures exhibited a key reversal day, (3715 – 3620.50), likewise DJ Euro Stoxx 50 (2801 – 2719), Dow Futures too (10538 – 10336).
By Andrew Shawn – Recursive Investments in Global Financial Markets
Corn futures confirm fractal as trade proves expedient. December Corn futures jumped a whopping +14 points up to 392 1/2. Expect rally to continue to over 410 conforming to fractal before a retracement down to the 360 level. Thereon after should exhibit the extrapolated rally.
Another Inspection of corn fractal. We observe Iterated pattern from Dec 5th 2008 through today. The Repeat fractal in Yellow (Click chart for large version)
Zooming in to repeat fractal (5th December 2008 through 2nd of June 2009):
Heuristic contends this repeat fractal began again on 8th September 2009 to Present Day (chart below)
Based on pattern we are currently on wavelet C”D” (i.e CD4 to D) which should take us in two days over the 409 level. I will be selling out my longs once the 409 point is crossed. Corn futures should then begin the DE (D”E” wavelet) down to at least the 360 level. Before the perceived blastoff rally takes us on a tangent on the big EF wave to at least the 450 point. I will be using the profits I have been accumulating from my longs at the 377 level through 409 to go short, and then risk all those profits at the 360 level, heavily long. As the saying of old goes “it is not how right or how wrong you are that matters, but how much you make when right and how much you do not lose when wrong”.
By Andrew Shawn – Recursive Investments in Global Financial Markets
My longs are increasing my NAV, so why do I keep getting tempted by the siren song of Mexico’s IPC Futures. I last covered the ill fated attempt to short it at the 32200 level and was happy to have done away with it, as IPC proceeded to rally up to to today’s 33380. However the siren song of bearish IPC is so strong given the fractal shape that I am forced to keep looking for reversal patterns.
Mexico IPC exhibited a key reversal day, while rest of the Western global markets (including Bovespa) closed up.
By Andrew Shawn – Recursive Investments in Global Financial Markets
Following the parabolic drop of the Euro against the Swiss franc which has occurred three times since 10/12/2007, I formulated the heuristic of a five wave knee jerk rebound. I had a signficant long position on EUR/CHF with an average fill of 1.3270. Everything was going wonderfully well until it exhibited a key reversal day on 7/20/2010. It was a valid indicator of a reversal but not a trend change. I sold out all my longs as EUR/CHF retraced to 1.333 on 7/22/2010. (This reversal had not even violated the average volatility of EURCHF). EURCHF in Earnest began the Knee jerk rebound trading today higher than previous temporary highs 1.3719 and yours truely had nothing in the game !!! The STUPID STUPID play of having sold out too early to protect a silly few pips ! I am back in long with a worse average fill of 1.3700
Previous pattern: 7/31/2008 (A) – 10/27/2008 (B) – 12/16/2008 (C)
Fast Forward to todays Chart:
With movement past 1.3700, EUR/CHF has a high probability of moving to 1.4800 in a five wave fractal. Disappointed with having missed my original position of 1.3270. But at 1.3700 at least I am in the game.
By Andrew Shawn – Recursive Investments in Global Financial Markets
Began accumulating (short term) long position on Corn futures, expecting retest of temporary highs in correlation with perceived fractal. Original wavelet 3-4 is an abcd wave, with an AB completion, heuristic is of a bc wave taking us to the 409 level, before wave cd brings us back significantly lower to around the 360 level, where upon bullish long wave (blastoff should begin). Hence if current move proves expedient (i.e perceived wave b-c takes us to the 409, I will sell out longs at the 409, turn short for a drop to the 360 level, before loading up heavily on the long side again as fractal would point to blastoff move touching 450.
By Andrew Shawn – Recursive Investments in Global Financial Markets
Ended trading day with a 180 degree turn, increasing my Nikkei Longs and buying into MSCI Taiwan Index futures while covering all short position IPC as it broke the 32550 level upwards. To be comfortable I need the Bund trading below the 128.00 level.
By Andrew Shawn – Recursive Investments in Global Financial Markets
I now carry a conflicting portfolio. I continue holding a large short position on the SPI 200 Futures and the IPC Mexico Index. This would be consistent with my technical analysis except for my recent bullish turn on the Nikkei. Further what is giving me pause has been the almost break out of patterns in the MSCI Taiwan, MSCI Singapore and Bovespa Futures. A further rally in any of these markets will have be considering my short position on SPI and IPC as untimely and I will be covering. “He who runs, lives to fight another day”
By Andrew Shawn – Recursive Investments in Global Financial Markets
The Nikkei might be set for a Rally: Empiricism has shown the Hang Seng tends to lead the Nikkei, not on a one to one movement but rather by movement fractal or recursive fractals. The latest indications are of the USD/JPY holding the 86 – 87 level. This coupled with the Hang Seng fractal of late. See chat below:
Extrapolated Fractal
Perceived pattern points to a knew jerk reaction, followed by 3 wavelet move.
Zoomed Nikkei Chart.
Based on Tale End of Chart We begin fractal.
Point 1: 7/2/2010 (9020)
Point 2: 7/14/2010 (9810)
Point 3: 7/20/2010 (9180)
Point 4: Should take us past 10260 if fractal is valid
Perceived fractal would be considered useless if Nikkei negates Point 2: (falls below 9180).
By Andrew Shawn – Recursive Investments in Global Financial Markets
Dow exhibited a key reversal yesterday to the upside. Further Divergence between USD/JPY and Nikkei shows high correlation to previous rally. Began buying Nikkei futures at the 9250 level, with tight stops at 9170. Went long (short term) dow futures as key reversal was completed.
What also gave me pause was the movement of the Bovespa and MSCI Taiwan Index Futures. Bovespa futures broke triangle formation to the upside indicating a further rally to at least the 65830 level. MSCI taiwan Index futures broke the 273.00 level to the upside. Rarely do these two markets give false signals. Coupled with key day reversals exhibited by Dow one has to be weary of trying to short. Keep timidly buying.
Market characteristics appear to exhibit a non trend period, with markets likely to remain within a rut before giving an indication of which direction to move in. Best strategy appears to be taking short term swings
By Andrew Shawn – Recursive Investments in Global Financial Markets
Rarely does an iterated fractal present itself without a significant bifurcation. Emperisism has led me to treasure such rare occasions, leveraging them to my advantage. Pattern of nearest Corn futures reveal such an opportunity.
Corn Futures Chart:
Zoomed Corn Chart Jan-2009 to July-2009
Perceived Fractal Movement:
Today’s Chart Zoom (January through July)
Wavelet 2-3 has been completed and today began commencement of wavelet 3-4 which should take December Corn futures down to the 350.00 level. Corn futures currently trading at 392 have further room to fall before blast off movement from pivot 4
By Andrew Shawn – Recursive Investments in Global Financial Markets
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Today 9:00 am (10 hours ago) | 
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