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Exclusive insights into the current trends in financial markets.

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A couple of my clients have asked for me to prepare some analysis on IRESS Limited (ASX code: IRE) and to share my views on the stock.

Anyone who has a copy of my trading book Trading with the Time Factor - volume 1, will be aware that the $12.60 level on the stock is critical resistance and definitely not an area to be buying.

Not only was it a double top with a previous high formed back in May last year, but it was also an exactly repeating price move of the prevoius major range higher (see the 16.8% and 16.6% price repeats in the chart below).

IRESS - 29 May chart

click to enlarge

I think there will be better levels to enter this stock, and here is why.

I'd like to share with you all a trade on Pfizer Inc. which I just completed and which I had written about in a previous edition of my monthly Time Factor Trade Report. I held the trade for just over 30 days and captured an exactly 100% gain on my position - or double my money in around a month.

The chart below was taken from the March edition of the Report and outlined the reasons for my trade.

As you can see, I was looking for a downward move in the price of Pfizer stock to the $31.98 level and purchased a $34.00 put option at a cost of 98 cents. Last week, the stock hit $31.97 and the options traded above $2.00 so I used this as an opportunity to exit the trade.

PFE - Mar Edition Time Factor report

click to enlarge

It continues to amaze me how so many people talk about the 'random walk' theory and how it applies to financial markets. Yet, the almost perfect geometric symmetry that exists in our markets continues to stare at everyone in the face. Those of you who subscribe to my monthly Time Factor Trade Report will know that I made two price forecasts at the start of the year for the US and Australian stock markets. You can download that report for free by clicking here.

Those forecasts were:

1. The S&P 500 would reach 2415 by early June; and

2. The ASX 200 is headed to 5960 this year

Well, so far in 2017 the following yearly stock market highs have been made:

1. The S&P500 reached 2404 in mid May; and

2. The ASX 200 made a significant high at 5957

Both of those forecasts are close enough for me.

ASX 200 - 5960 forecast to actual

click to enlarge image

The basis of those forecasts were pretty simple, really. And this is how I did it.

Toward the end of last year (in 2016), I put together my annual stock market forecast for US equities in 2017. In doing this, I adopted the very same techniques which WD Gann used to make his annual stock market forecasts back in the 1900's.

The results so far this year have been incredibly accurate (see chart below).

Now I know that there are a number of Gann experts who had put similar Road Maps together, but I haven't come across anyone who put together a forecast for US equities that was as accurate as mine last year (you can view my 2016 forecast by clicking here).

I am also pleased to say that my 2017 forecast for US equities (blue line) has been equally as successful so far (actual prices in orange).

WD Gann Road Map - 2017 update 28 Apr

click to enlarge chart

Those who want to learn how to make a similar forecast can email me at info@thetimefactor.com for more details, but in the meantime, here is an overview of the US equity markets and where I see US equity prices headed in the future.

Indian equity markets have made a very strong start to the 2017 trading year. Whilst the WD Gann Road Map for Indian stocks suggests that the 9000 level will be reached some time this year, there will be a number of very strong trading opportunities in Indian equities if you have the timing right.

The chart below shows some reasons as to why we may be seeing a pause in the upward momentum on Indian stocks. You will see that the recent top on 9 Feb came in on a very strong "trading to Time" date, with strong correlation to the 9 Aug and 9 Nov turning points. We also have a 1x1 calendar day Gann Angle creating resistance at current prices (see chart below).

Nifty - 10 Feb 2017 daily chart

click to enlarge chart

Index

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