Charting around Asia

Making money with the Daniel charts

by John Needham, The Daniel Code Report | February 5, 2008

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In last month’s Charting around Asia I showed you this chart of SGD-JPY. Having reached its Daniel number of 73.85, the next number in the Daniel sequence was shown as 72.88 as you can see.

The low came one day after the above chart was published by Financial Sense Asia at 72.79 against its Daniel number of 72.88, just 9 ticks (pips) variance. This market immediately rallied to 75.86 just 13 ticks below its first DC target. If you were reading Financial Sense’s Asia page you made $3837.50 per contract just for placing the order. Tell your friends.

Will the Danielcode show you the important turns in other markets? Read on and you be the judge.

Gold

Gold continues to hold above steep trendlines as it goes into its blowoff phase. This is the weekly chart

If you are a Gold trader you need to know the Daniel numbers to make sense of it all. For 15 January the DC number was 917.60. Comex Gold made its high at 916.10. For January 22, Danielcode Gold traders were looking for a turn at 848.80. The low was made at 849.50. We then looked for a rally to the next DC number which was 942.10.The high was made at 941.80.

Major Indices

The key driver for major US stock indices is the S&P Banking Index which measures sentiment and value in the big US banks. The Dow Jones and S&P indices are both capital weighted and the financial sector is a major component. This index made its low on January 22 just I point through our Daniel number at 76.05. Since then it has rallied 26% to its old Daniel number at 95.89. 

The fast stochastic on the weekly chart is turning up and there are additional DC numbers above the market. Watch this market carefully as it sets the tone for major US markets.

This is the Hang Seng Daily chart. Having made its October high and January low right at its Daniel number targets, this market spent the past fortnight rallying in a tight range. It retested the higher level Daniel number at 23085 and bounced off it on Friday. This number is now critical support.

This is the weekly chart of Nikkei 225. Since 2005 it has made every important turn at its Daniel numbers. The January turn at 12572 was just 9 points from its DC target. Having regained the previous DC level at 13529 that now becomes crucial support.

This is the weekly chart of the Shanghai Composite Index. In my 21 January column I said “Volatility is growing in this index”. The next fortnight gave you the biggest weekly ranges ever in this index so I trust you were paying attention! The October-February retracement went right to the first Daniel support number at 4202 with just 2 points variance from its DC target. The rally in sympathy with the S&P Banking Index has not yet regained its support levels but price remains in a strong position. 

Here is the daily chart if you are trading this market.

Taiwan Index Weekly. Not much of a bounce last week, but bottomed close enough to Major DC target at 7399

OIL

Crude Oil topped just beyond its Daniel target of 95.89 with its highest close at 96.32. One of the quirks of the Danielcode is that it can complete its number sequence at either a high/low of a bar or on the close only number. The 9 November close 42 ticks past its DC target is acceptable. Fast markets retrace 29.7% then 37.5%. This market is holding above its first DC retracement level and accordingly remains in a strong position.

Other Currencies

JPY-HKD The Yen continues to strengthen against the HKD.

EUR-CNY is correcting a minor range which implies higher prices ahead

NZD-JPY Weekly is range trading between its Daniel price levels.

This is the Australian SPI or Share Price Index. Apart from having the most unimaginative name on the planet it ranks right up there as a candidate for the most over hyped and over valued index among the great bubble players. It has barely retraced the minimum DC correction and remains in a strong position.

CAUTION-The Daniel numbers on these charts are from historic sequences that may not be current at the time of publication. They are appended for historic interest only. Do NOT use these numbers to trade markets. Current Daniel sequence numbers for most currency crosses are available to subscribers at the Danielcode website.

Copyright © 2008 John Needham
Asia Editorial Archive

John Needham is a Sydney Lawyer and Financial Consultant. He publishes The Danielcode Report and writes occasionally on other markets. He lives with his family in Australia and New Zealand.

“The fox knows many things, but the hedgehog knows one big thing. A Hedgehog Concept is not a goal, intention or strategy to be the best. It is an understanding of what you can be best at. The distinction is absolutely crucial”. ~ Isaiah Berlin, The Hedgehog and the Fox

contact information

John Needham | The Danielcode Report | Taupo, New Zealand | Email | Website

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