Archive | December, 2011

Euro Barely Hangs on to Primary Trend

As weak as the Euro’s been since spring against the U.S. Dollar – down approximately 12.8% from the May ’11 high – the primary trend according to Dow Theory for this currency is still higher, barely.  Approximately 129.25 marks a line in the sand of sorts for this currency with a weekly close below that [...]

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Even without a Banking Crisis the U.S. has a Steep Advantage over Europe

Regardless of the short-term implications of the current battle between speculators and the ECB over the direction of the EURUSD, the long-term economic prospects look much brighter for the U.S. economy than the European economy from the perspective of the most important fundamental input: demographics. While it is important for an economy to have a [...]

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Two lines in the RBA Minutes and a Holiday Rally

Two lines in the 3rd to last paragraph of the Reserve Bank of Australia’s minutes for December set off a holiday rally in not just the Australian currency but in the other financial and commodities markets as well.     The RBA actually lowered their interest rates becasue of concern for the continued crisis in Europe but did concede: “On the one hand, [...]

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Euro and Gold Correlations Waning

Markets have always maintained correlations based on shared fundamentals and competing investors. The most talked about correlation in recent market history was cemented in 2009 between asset class markets, currencies, and commodities by QE I in 2009, and QE II in the fall of 2010. By dropping interest rates to near zero and allowing banks to exchange [...]

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The Six Stages to Trading Success: Stage Six

The Six Stages to Trading Success: Stage Six 1. Ownership 2. Planning 3. Working 4. Analyst 5. Artist 6. Trader Once you understand that discretionary trading is an art, and you’ve completed a trading plan based on sound analysis, and then demo or micro traded that plan profitably through six months of live trading, with the full understanding that it is [...]

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The Six Stages to Trading Success: Stage Five

The Six Stages to Trading Success: Stage Five 1. Ownership 2. Planning 3. Working 4. Analyst 5. Artist 6. Trader The first three stages are obstacles, while the second three involve the process of learning to trade. Today’s lesson covers stage 5 of the six stages: artist. Artist rhythms with chartist, whose canvas is the computer screen. You need to be [...]

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