What a beautiful market opening today !

What a beautiful market opening today !

Really, it is !

The NASDAQ index uses a gap up to pass the Trap-zone which is mentioned last night. Please refer to the chart of the trap-zone here. Some bears trapped inside the trap zone will be toasted again.

IF 1980 can hold well during the pull back, then a money-making zone will be formed again ! I will do more analysis later to follow up the market.

I am so happy that my predicted NASDAQ 1995 will soon be fulfilled. So far, the highest point is 1991.72, only less than 4 points away ! This is the initial post. The latest update is here.

Please notice that I will apply my own theory on the stock price development analysis and prediction in the blog so that you may learn something new here, and at the same time I can refresh my thinking and improve the theory accordingly. My theory is pretty unique, creative, and very practical in terms of application. So please make sure you can understand the basic staff listed below:

1. Short summary and key points
2. Technical analysis tips (will be updated accordingly)

One real application example: According to my theory, the end of a trap zone will lead to a money-making zone. So once the trap zone pattern is gone this morning with 1980 being breakout, that means a money-making zone is forming. In addition, the end of the money-making zone will lead to another trap-zone !

Another example: A reliable top and bottom formation needs a successful transition from either a bullish trap zone to a bearish trap zone, OR, a bearish trap zone to a bullish trap zone. In general, to complete such a transition, at least 6 UP/DOWN waves are required.

So far, in the NASDAQ daily chart, no such transition at all. Of course, my theory can not guarantee you sell at the highest point and buy at the lowest point during a big profitable wave because it is impossible. It makes sense in reality because the highest point and the lowest point may be created through just one very low volume trade. The nature of this special trade is very random. But the theory can help us to sell at a reliable top area, to buy at a reliable bottom area, and make profits from the wave in between.