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View Full Version : Stock Market Forecast - Week of May 25th, 2009


Shane Burke
05-24-2009, 07:02 PM
Last Thursday was the best accumulation day in three weeks. Was successful in establishing the following positions:

TGC @ $0.54
KTOS @ $0.72-$0.74
CNVR @ $0.24-$0.31

These stocks are positioned very well to run over the coming weeks.

The Dow appears to have bottomed at 8,200. Was patiently waiting the previous week for a major sell-off following the significant 2-month trend line break and that just never happened as seen below.

http://pennystocksbull.com/stockcharts/dow6m5-25-09.jpg

Now, the major 13-month trend line is yet again in play. If this gets snapped watch out because Dow 9,000+ is right around the corner.

http://pennystocksbull.com/stockcharts/dow1y5-25-09.jpg

Further confirmation of the market bottom is seen in the EUR/YEN cross which is my personal favorite currency pair and great indicator of future stock market movements. Notice the perfect cup-with-handle breakout pattern. The white downtrend line is the equivalent of the 13-month downtrend line on the Dow chart. If the EUR/YEN breaks that white downtrend line you can bet the Dow will break it's downtrend line shortly thereafter.

http://pennystocksbull.com/stockcharts/euryen5-25-09.jpg

*Established a long in the EUR/YEN Thursday night at 131.24 with a stop below 129.64, intend on holding for the 140's.

Shane Burke
05-26-2009, 04:38 PM
The forecast was 42. This is the highest number since September which was just prior to things turning very ugly for the economy. Very good sign for the long's. Stocks can feed off of this positive news until Thursday 8:30 AM EST, Durable Goods. Friday, GDP is due at 8:30 AM EST.