Perception Is Everything
It’s more important to the market than Ireland, Greece, Portugal, and Spain combined
The trials and tribulations of these four countries (that have run up huge deficits) have been well known for quite some time. What is more important in my opinion is not the size of the debt, which is staggering, but rather what is going on with market perception.
Market perception trumps everything else out there. Market perception trumps market fundamentals every time. Market perception is the one card that the government cannot control. It is the card that can potentially give the individual trader an edge. Continue reading
Trade The Trend in Gold, Dollar, S&P500
Today we have an analysis by Chris Vermeulen “The Gold and Oil Guy”. Chris has some rock solid tips on trading choppy markets like we are seeing now. Picking tops can be very difficult and costly so check out Chris’ advice in the final paragraph. It’s worh its weight in Gold!~ Tim McMahon, editor
Dollar, Gold & SP500 Trend Trading
November 10th, 2010
It has been a roller coaster week thus far as stocks and precious metals plunged on heavy selling volume on the back of a rising dollar, only to make a strong rebound Wednesday. While there has been significant intraday price movement, it was no surprise to us as we have been anticipating this pullback since discussing it in my Sunday Gold Newsletter.
Let’s take a quick look at the charts…
US Dollar Daily Trading Chart
The past couple weeks the dollar has traded in a choppy fashion, and last week I mentioned to subscribers to keep any new positions small. The dollar looked ready to make a bounce and if it reverses we will see stocks and commodities correct rather sharply.
Last week we trimmed some profits on our gold and SP500 trading positions in anticipation of a rising dollar/lower equity and metals prices. The dollar is currently in a down trend so we are still trading with the trend, but the next couple sessions could potentially change that.
As you can see on the chart a similar pattern to what we saw during Continue reading
Head and Shoulders Stock Market Pattern: Still Valid?
A Multi-Year Technical Analysis Pattern “Bears” Watching
By Robert Jay
description of its three main components:Your Chance to Learn How to Forecast Markets Using Technical Analysis
EWI’s Senior Tutorial Instructor Jeffrey Kennedy gives you practical lessons — free
September 17, 2010
By Elliott Wave International
There are two camps of market analysts out there: the fundamental camp and the technical one. Fundamental analysts look at things like the GDP, unemployment, interest rates, etc. to make logical assumptions about where the stock market is going.
Technical analysts use none of that. They look at the market’s internals to gauge the trend: things like momentum, trend channels — and yes, Elliott wave patterns.
And this is your free chance to learn how they do it. Continue reading
The Elliott Wave Principle Book
Key to Market Behavior
A Great Classic for Three Decades
Take a moment to look over your books about investing. Have any of them given you a successful method for making profits and reducing risks? Is there even one such book that has proven reliable over the years?
Alas, most investors would say “no.” That’s because so few investment books are “classic” in the true sense: For years investors keep buying the book, and they keep using the method to make the most of their opportunities.
Over Three decades ago — 1978 — is one of the last times an investment book was written that is worthy of being called “classic.”
One of the two men who authored that book was a 26 year-old market analyst working at Merrill Lynch’s headquarters on Wall Street. The young man had earned a lot of attention in a short time by using a forecasting tool that almost no one had heard of.
Yet his market forecasts were startlingly accurate: Robert Prechter was the young man’s name, and he used a method called the “Elliott Wave Principle.”
A. J. Frost was one of the few other financial professionals who used the Wave Principle. In a distinguished 20-year career, Frost had likewise made many astonishingly accurate forecasts. His colleagues regarded him as the consummate technical analyst.
Frost and Prechter met in May of 1977 and became fast friends. Eighteen months later, they published Elliott Wave Principle – Key to Market Behavior. The Dow Industrials stood at 790. But the brash forecast in this new book called for a Great Bull Market. It became a run-away best seller.
Three decades is enough time for investors to deem a book about an investment method as “classic,” and surely the jury is “IN” on this one:Their book Elliott Wave Principle is now published in seven languages, and continues to sell thousands of copies every year. In Europe, Asia and the Americas, literally millions of investors worldwide use or recognize the Elliott Wave method for profitable investing.
Now You can get your own copy.
Robert Prechter and A.J. Frost’s groundbreaking investment classic hailed by reviewers as “the definitive textbook on the Wave Principle” is the most useful and comprehensive guide to understanding and applying the Elliott Wave Principle.
The Publishers Price is $29. We have a few copies in brand new condition available that we will let you have at the discounted Price of $19.95 + $3.99 Shipping (U.S. Only) Supplies are extremely limited we only have a few copies left at this price.
Why Weekly Charts Work
Many traders get so involved with the market on a daily or even an intraday basis, that they somehow lose out on the bigger picture. Weekly charts are enormously helpful in giving clues to the future direction of the market.
In today’s video we examine one of the biggest markets in the world, the S&P 500, using a weekly chart. The video runs about two minutes in length and I think you will find it both educational and informative.
As always our videos are free to watch and there are no registration requirements.
Enjoy the video and be sure to share your thoughts. Continue reading
Similarities between Boxing and Trading
By Les Schwartz, President
DecisionBar Trading Software
There are many similarities between boxing and trading. Trading is combat, and your success or failure in this battle has a lot to do with your preparation.
Former undisputed heavyweight boxing champion Muhammad Ali, when asked after a fight how he had won, replied,
“The fight is won or lost far away from witnesses – behind the lines, in the gym, and out there on the road, long before I dance under those lights.”
Most traders prepare incorrectly for the trading battles. This is a good thing, as it provides profit opportunities for the rest of us.
For example, most traders begin by learning about a lot of indicators, put those indicators on a chart, and then try to figure out what the market is going to do. This is fundamentally wrong. Here’s an example:
Simple Timing Tool That Will Help You Protect Your Assets
Editor’s Note: At this point a lot of ink has been spent on whether stocks are really cheap and if the market will now rally from here. Of course “time will tell” but in order to make money we need to know the answer before that. My personal gut feeling is that we still have another leg down but wouldn’t it be nice to have a more scientific approach than just your “gut feel”? Of course we have our ROC indicators (see our NYSE ROC and our NASDAQ ROC) but if you would like another opinion for full confirmation, here is Rick Pendergraft’s simple market timing tool.
By Rick Pendergraft
One of the things I have been asked, and have seen in headlines over the last week, is whether or not this rally is for real. My answer? It’s too early to tell.
A few weeks ago in the State of the Market special report, I cautioned the bears to look out for a sharp rally. The market was just looking for an excuse to rally. Enter Citigroup (which I suggested was worth taking a flier on in last week’s article) with word that they made money in the first two months of the year.
Here is what I would suggest. First, if you are looking at the short-term, I would look for the market to continue to rally over the next few weeks. Getting the indices out of the historic oversold level we reached a few weeks ago. Second, if I am looking at the long-term, I might be wading in at this point, but I would not be diving in headfirst with all my money allocated to stocks. Continue reading
