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Showing Posts 1 - 15 out of 21 found.

EuroSTOXX Upward Correction Finished?

EuroSTOXX Upward Correction Finished?

Along with the German DAX and the London FTSE, for which we posted charts in January and March, we also like to monitor the EuroSTOXX 50 Index for a view on the health of European equity. The Euro STOXX 50 Index is composed of 50 of the most liquid stocks throughout the Eurozone and comprises a majority of the market capitalization in the Eurozone, making it a good barometer for the zone as...

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The Prattle Rattle, A Falling Dollar And A Rising GE?

The Prattle Rattle, A Falling Dollar And A Rising GE?

I did not see yesterday’s market slide coming, but today’s follow-through makes total sense. - U.S. funds mangers recommended a cut to equity allocations in April to their lowest since the financial crisis. It is a guess, but maybe, just maybe, a bit o’ panic is swirling around the street. Actually, we have seen this so many times since mid-2009, it should have a name – The Prattle Rattle....

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Why The Australian Dollar Matters Now

Why The Australian Dollar Matters Now

In January and again in April, we showed we showed a potentially bearish path into the middle of 2016 and beyond for Australian stocks – a decline that we believe is linked to lowered expectations for China's economy and trade. Consistent with that view, the Australian Dollar appears ready to make a similar decline during the next year or longer. In the context of a larger decline that began...

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Action Steps for a Perfect Trading Plan

Action Steps for a Perfect Trading Plan

Last week, we began with our first of two part series, ‘8 Step for a Perfect Trading Plan’, to help answer that question of what should be included in every trading plan and how it helps you become a more successful investor and trader. Let’s now delve into the rest of the ingredients including Position Sizing and Risk Management, Trading Systems, Market Analysis and Weekly Review.  ...

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More Dollar Deflation Coming?

More Dollar Deflation Coming?

The US dollar has declined sharply so far in 2016, losing about 5% of its value against a large basket of other global currencies.  That may seem substantial and often characterizes the health of the sovereign country's economy.  So, does it really mean the US economy is in decline?  Further, does it truly represent a decline in purchasing power and strength in the world - as it usually...

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All About the (Unloved) Banks

All About the (Unloved) Banks

This past week the Financial sector did the heavy lifting. The financial ETF (XLF) far outperformed the main ETFs in technology, industrials, materials, energy, biotech… you name it. I consider this surge a significant development; one that bodes well for higher prices in the major indices, even though financials comprise the most unloved sector in the S&P. Here’s the backstory. In the...

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Is The Fed Intent On Breaking The Middle Class?

Is The Fed Intent On Breaking The Middle Class?

One chart reveals Fed’s true intent; wreck havoc on the Middle Class   Crises refine life. In them, you discover what you are.Allan K. Chalmers What strikes one immediately is that the Fed has been creating money hand over fist; one hand they create money, with the other hand they buy assets and put it on their books, all looks well until you realize this is something called monetization of...

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Ride The Yen Waves For Profit

Ride The Yen Waves For Profit

In the weeks since our last post about USD/JPY futures, price has moved upward and slightly beyond our resistance target. That move provided a brief countertrend trading opportunity, and now it may be time to shop for another trade in concert with the larger downward trend. Viewing the overall decline from the Yen's 2011 high as an impulsive wave 'A', we believe the pattern has shifted into...

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What’s Next for the Nasdaq ($NDX)?

What’s Next for the Nasdaq ($NDX)?

The Nasdaq 100 index ($NDX) has rallied from below 4000 to above 4500 in the space of 2 months.  This is approximately +12.5% gain in just 8 weeks.  So with that as a backdrop, what’s next for the NDX?  Is it more upside dead ahead?  Or has it run out of steam? Click here to watch a video explaining how to read the stock market using volume at price. The Nasdaq-100 reached an important...

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How to Use Commitments of Traders Report – Currency Review

How to Use Commitments of Traders Report – Currency Review

The Commitments of Traders Report is issued by CFTC. It reports all open positions in futures markets of three main groups of traders: Commercial Traders - Hedgers Non-Commercial Traders – Money Managers Non-Reportable – Retail market The report breaks down each Tuesday’s Open Interest and gives us a powerful view on what exactly the big guys have been doing in the marketplace and what their...

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The 5 Key Elements To Your Trading Success

The 5 Key Elements To Your Trading Success

After almost two decades of trading, I have come to the realization that trading simplicity is best. When we make the effort needed to keep things simple, we avoid making the accident of taking away some of trading’s most significant aspects without which, success in trading would be even more difficult. I feel that foundation of all success in trading must involve the following five...

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China: The World's Most Billionaires, Invest Now For the Long Term

China: The World's Most Billionaires, Invest Now For the Long Term

An ounce of patience is worth a pound of brains.Dutch Proverb Our Asian edge Index and trend indicator clearly stated back in 2005, that China would lead the way in economic growth and eventually overtake the US in many areas.  China now boasts the World’s Largest Middle Class, and it is growing much faster than our Middle-Class.   According to Credit Suisse, 109 million Chinese have savings...

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Implications of Weak Dollar

Implications of Weak Dollar

--Interest rate futures continued to rally after the Fed's shift back to the dovish camp.  The ten year yield fell 3.3 bps to 190.3.  The eurodollar curve flattened, with reds +2.25 and golds +5.125; red/gold pack spread is hovering around the lows at only 76.5 bps.  One year calendar spreads also declined, with the first TEN (!) one-year spreads setting between 25 and 30.5.  The implication...

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The Russian Stock Market Is A Great Long Term Buy

The Russian Stock Market Is A Great Long Term Buy

  For a long time, we have been stating that the Sell-off in both the Ruble and the Russian stock market provided the astute investors with a great long-term buying opportunity.  Well, this chart proves that things are getting better and that the Sanctions that the West imposed on Russia at the behest of the America was a stupid idea, but more importantly, it has made Russia even stronger....

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Portfolio Protection is Not Always Fun

Portfolio Protection is Not Always Fun

When you add some portfolio protection as a defensive measure, whether it is utilizing inverse ETF's, options or straight out shorting stocks it certainly does not feel good when the market is rising.  The result is likely a drag on performance, especially on a day like Friday when the SPX 500 moves higher by more than 1.5%.  Everything was moving higher except those bearish bets.  It's on...

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