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Market insight for Wednesday, December 03, 2008

 

MARKET FAQ

What is the Olive LineTM?

The Olive LineTM is a trademarked, time tested, first of its kind calculated formula used to predict multi-market swings. These calculation are based primly on macro economic data.

What does GCI mean?

Gated Community Imperialists

What is a player's sheet? How do you read them?

A player’s sheet is a list that is released at multiple times each trading day. The most important sheets of the day are at 11:30 AM and 2:45 PM. The sheets provide data on what the top market participants are buying and selling throughout the trading day. The numbers that are listed are calculated in hundreds, and the letters are symbols that represent each month of the year. (Example: 3z = 300 December) The symbols used for each month are provided below.

F - January
H - March
K - May
N - July
Q - August
U - September
V - October
X - November
Z - December

What are support and resistance numbers? How can you use them?

Support: These levels can arrive from regret. Once the price drops down again after missing it the first time, people might buy aggressively to avoid missing it the next time. (Lows mark support)

When a price hits a support level: Buying pressure is stronger than selling pressure Support levels interrupt a price decline. Prices usually bounce up from that level.

A break of a key support level (indicated by asterisks next to the number) is a sign that selling pressures have overwhelmed buying activities. Demand has lessened and there is more supply than demand.

Resistance : Theses numbers exist because people might remember where prices turned around and began to fall. When prices reach the turn around level, people might start to think about selling. (Highs mark resistance)

When a price hits a resistance level: Selling pressure is stronger than buying pressure (is strong enough to interrupt a price advance) Prices tend to hit these levels on the way up.

A break of key resistance level (indicated by asterisks next to the number) is a sign that buyers have become aggressive. There is an increase in demand and prices will most likely rise.

People that are waiting for a rally to avoid losing money contribute to selling pressures.

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