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Entries posted on “March, 2011”
Over the past couple months everyone seems to have been preparing for a sharp market correction. Crazy part is that the SP500 dropped about 10% from the high and that is a typical bull market correction. The thing is… the stock market has a way of slowly unfolding making it look and feel minor, then before you know it, the correction is over and it’s back to an uptrend. That is kind of how this one unfolded.
The good news is that we caught the low risk portion of the correction locking in a 4.5% drop, and we are now in a long trade and in the money by 2.5% with very little down side risk at this point. Time will tell if this up trend is sustainable or not…
Now, let’s take a look at the charts…
Dollar 60 minute intraday chartAs you can see below the dollar looks to have started a breakdown today. If there is continued selling pressure in the next couple days then expect to stocks and commodities to move higher as the US Dollar drops. It is important to know that when a bullish pattern fails we typically see a very strong reaction in the opposite direction (down) catching the majority off guard and they rush to the door.
SPY Broad Market ETF – Daily Chart
A couple weeks ago we watched the market go into a free fall creating a washout bottom. From there we saw prices bounce back and retake my key moving averages. This gave us a bullish bias and dips should be looked at as buying opportunities. I will admit that stocks still have a long way to go before the masses are convinced. I feel we need to see the February and March highs get taken out first. Once they get taken out there should be strong buying as short covering (protective stops from traders who are short) causes a surge in buying pressure sending stocks sharply higher yet again.
My trading buddy David Banister at
Active Trading Partners is starting to see small cap stocks come back to life. Money is starting to flow into these lucrative areas of the market and he is on top of things… This week’s trade is up 20% in less than 24 hours which is very exciting.
Gold Daily ChartGold has been moving up this year but the current price action is not really getting me excited to buy just yet. Recently we have seen strong selling volume and very light buying volume. My bias still favors higher prices but there is still a good chance we get another dip in the coming sessions.
Mid-Week Trading Conclusion:
In short, I feel as though the dollar will trigger the next wave of buying in stocks and commodities for the next week or two… We should see the dollar make a clean moving in either direction shortly and that will help guide my analysis, positions and setups. I hope this analysis helps you to see the market from a different perspective.
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March 31st, 2011 | Posted in Finance,Market News | Read More »
Sure, gold dominates the headlines. But which would you rather buy right now, gold or silver?
Gold has incredible amounts of emotional baggage attached to it, while silver is in a different league, at least for the moment. This video will show you two indicators that can help you capture either market when and if the upward trend decides to resume.
With all of the world’s troubles, there are plenty of reasons why one would think that both of these markets should be much higher. The question is, why aren’t they? We think that the video you’re about to watch will help answer some of those questions.
In today’s short educational trading video, we put together comparisons between these two markets and why the obvious choice may not be the best choice.
As always our videos are free to watch and there are no registration requirements. Please feel free to leave a comment and tell us what you think of the video and also what you think of gold and silver.
Watch “Gold or Silver….Which is the Right Precious Metal for You?”
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March 30th, 2011 | Posted in Finance,Market News | Read More »
Internet giant Google is the most valuable brand in the world with valuation of $45 billion and market cap of $143.02 billion. 2010 revenue of this California based company was $29.321 billion and profit was $8.505 billion.
Out of top twenty, thirte…
March 30th, 2011 | Posted in Finance,Financial News | Read More »
Initial Public Offers are a way to make general public partners in businesses and thereby raise a capital. An analysis into world’s largest IPOs reveals the economical power shift from America to Asia. While there are American companies on this list,…
March 29th, 2011 | Posted in Finance,Financial News | Read More »
The best evidence of dragon’s increasing influence and share in world economy is this data. In, 2005 4.5% of world GDP accounted for by China. Within five years, that number is doubled.
China’s overseas investment shot up by around 350% from 1.4…
March 27th, 2011 | Posted in Finance,Financial News | Read More »
Finally some respite to the fears of another downturn. Q4 GDP for the year 2010 has grown at 3.1% bettering the estimation of 2.8%. Though the improvement is modest, it does boost the confidence in the country’s economy.
Major contribution was fr…
March 27th, 2011 | Posted in Finance,Financial News | Read More »
Equities and Precious Metals are on the edge of another rally and it could start as early as tomorrow.
On March 13th I posted some of my analysis online showing how the market was trading at a key pivot point and that a sharp price movement was about to unfold. I also provided everyone with the direction in favor which played out perfectly catching a 4.5% in three days.
As of today we are getting the same setup I saw on March 13th [see "It Looks Like Crash or Crush Time For Equities and Gold"] but this time it’s pointing to higher prices. Take a quick look at the charts I was looking at for both the SP500 and gold and you will notice that the SP500 and gold both moved to the support levels before starting to bounce.
While we caught the move down on the SP500 playing the SDS Double leveraged inverse fund we did not take part in falling gold prices. Reason being, there is so much fear in the market and the amount of surprise news popping up each week I don’t think shorting precious metals is a safe call. Rather I am looking for a pullback to cleanse the holders of the commodity then I will buy once price confirms the continuation pattern has completed.
Now, stepping forward to this week’s price action
SPY Daily Chart
We can see in the chart below that price is currently testing a key resistance level. Before the week is over we could see some big price movement equities. I need to see what happens tomorrow but I have a feeling we could see a breakout to the upside for a long position.
Gold Miners Fund Daily Chart
Gold stocks have be under performing the price of bullion for a few months but it looks as though they could be starting a sizable rally. If gold stocks continue to move sharply higher out of this pattern, then it’s a positive sign that gold and silver bullion will both continue to move up.
Mid-Week Trend Report:
In short, stocks and commodities may have shaken the weak positions out of the market during the recent pullback in price. Things could be ready to start another multi month rally and trade setups. Keep your eyes on the charts….
Just Click Here if you would like to get these reports sent to your inbox each Sunday & Wednesday. Check out The Gold and Oil Guy.Com
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March 24th, 2011 | Posted in Finance,Market News | Read More »
So Why is Zynga IPO getting all this hype among investors? Below are some of the facts that will give you some idea about the growth potential of this company. You might be one of those millions like me who hate Farmville but believe me there are…
March 23rd, 2011 | Posted in Finance,Financial News | Read More »
For the past few weeks gmail users in China were experiencing some technical hurdles. Last week Google blamed Chinese government for these technical problems. Google said after extensive technical tests and probes that their system is running efficient…
March 23rd, 2011 | Posted in Finance,Financial News | Read More »
William Greenspan has over 155 consecutive winning months using his “day trading” system. As a day trader since the early 70s, he has walked in the pits of the CBOT and CME practicing his philosophy of making “a million dollars on a million trades, not a million dollars on one trade.”
Greenspan shares his strategy as well as best practices for successful trading on Trend TV…
“Discipline. That’s the key to success in so many aspects of life and it’s the main ingredient of any successful trading plan. But, what does discipline really mean to an intraday trader?
Discipline means taking small quick losses and letting your profits ride. That’s the key to all successful trading. Discipline means using stop loss orders on every trade to limit your losses and moving your stop loss orders to protect your profit.
That’s kinda like grooming your position. When you have a profit in a trade, you should take your stop loss order and move it first to your break even point, and then if your trade continues to trend your way, to always protect your profit along the way. Three, discipline means following all the buy and sell signals that your trading plan or system of trade has to offer you.
In all trading you must expect losses and you must accept them gracefully, because it may take only one mistake to wipe out the profits of ten winning trades…”
To watch the full video with William Greenspan, please visit Trend TV. Once you receive your password, you can visit Trend TV anytime and watch new videos as they are added.
We hope you will be able to use Greenspan’s experience to grow your profits and protect you from that one big mistake.
Just Click Here to take advantage of everything Trend TV has to offer!
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March 22nd, 2011 | Posted in Finance,Market News | Read More »
