Best of the Week
Most Popular
1. Stock Markets and the History Chart of the End of the World (With Presidential Cycles) - 28th Aug 20
2.Google, Apple, Amazon, Facebook... AI Tech Stocks Buying Levels and Valuations Q3 2020 - 31st Aug 20
3.The Inflation Mega-trend is Going Hyper! - 11th Sep 20
4.Is this the End of Capitalism? - 13th Sep 20
5.What's Driving Gold, Silver and What's Next? - 3rd Sep 20
6.QE4EVER! - 9th Sep 20
7.Gold Price Trend Forecast Analysis - Part1 - 7th Sep 20
8.The Fed May “Cause” The Next Stock Market Crash - 3rd Sep 20
9.Bitcoin Price Crash - You Will be Suprised What Happens Next - 7th Sep 20
10.NVIDIA Stock Price Soars on RTX 3000 Cornering the GPU Market for next 2 years! - 3rd Sep 20
Last 7 days
UK Covd-19 FREE Lateral Flow Self Testing Kits How Use for the First Time at Home - 10th Apr 21
NVIDIA Stock ARMED and Dangeorus! - 10th Apr 21
The History of Bitcoin Hard Forks - 10th Apr 21
Gold Mining Stocks: A House Built on Shaky Ground - 9th Apr 21
Stock Market On the Verge of a Pullback - 9th Apr 21
What Is Bitcoin Unlimited? - 9th Apr 21
Most Money Managers Gamble With Your Money - 9th Apr 21
Top 5 Evolving Trends For Mobile Casinos - 9th Apr 21
Top 5 AI Tech Stocks Investing 2021 Analysis - 8th Apr 21
Dow Stock Market Trend Forecast 2021 - Crash or Continuing Bull Run? - 8th Apr 21
Don’t Be Fooled by the Stock Market Rally - 8th Apr 21
Gold and Latin: Twin Pillars of Western Rejuvenation - 8th Apr 21
Stronger US Dollar Reacts To Global Market Concerns – Which ETFs Will Benefit? Part II - 8th Apr 21
You're invited: Spot the Next BIG Move in Oil, Gas, Energy ETFs - 8th Apr 21
Ladies and Gentlemen, Mr US Dollar is Back - 8th Apr 21
Stock Market New S&P 500 Highs or Metals Rising? - 8th Apr 21
Microsoft AI Azure Cloud Computing Driving Tech Giant Profits - 7th Apr 21
Amazon Tech Stock PRIMEDAY SALE- 7th Apr 21
The US has Metals Problem - Lithium, Graphite, Copper, Nickel Supplies - 7th Apr 21
Yes, the Fed Will Cover Biden’s $4 Trillion Deficit - 7th Apr 21
S&P 500 Fireworks and Gold Going Stronger - 7th Apr 21
Stock Market Perceived Vs. Actual Risks: The Key To Success - 7th Apr 21
Investing in Google Deep Mind AI 2021 (Alphabet) - 6th Apr 21
Which ETFs Will Benefit As A Stronger US Dollar Reacts To Global Market Concerns - 6th Apr 21
Staying Out of the Red: Financial Tips for Kent Homeowners - 6th Apr 21
Stock Market Pushing Higher - 6th Apr 21
Inflation Fears Rise on Biden’s $3.9 TRILLION in Deficit Spending - 6th Apr 21
Editing and Rendering Videos Whilst Background Crypto Mining Bitcoins with NiceHash, Davinci Resolve - 5th Apr 21
Why the Financial Gurus Are WRONG About Gold - 5th Apr 21
Will Biden’s Infrastructure Plan Rebuild Gold? - 5th Apr 21
Stocks All Time Highs and Gold Double Bottom - 5th Apr 21
All Tech Stocks Revolve Around This Disruptor - 5th Apr 21
Silver $100 Price Ahead - 4th Apr 21
Is Astra Zeneca Vaccine Safe? Risk of Blood Clots and What Side Effects During 8 Days After Jab - 4th Apr 21
Are Premium Bonds A Good Investment in 2021 vs Savings, AI Stocks and Housing Alternatives - 4th Apr 21
Penny Stocks Hit $2 Trillion - The Real Story Behind This "Road to Riches" Scheme - 4th Apr 21
Should Stock Markets Fear Inflation or Deflation? - 4th Apr 21
Dow Stock Market Trend Forecast 2021 - 3rd Apr 21
Gold Price Just Can’t Seem to Breakout - 3rd Apr 21
Stocks, Gold and the Troubling Yields - 3rd Apr 21
What can you buy with cryptocurrencies?- 3rd Apr 21
What a Long and Not so Strange Trip it’s Been for the Gold Mining Stocks - 2nd Apr 21
WD My Book DUO 28tb Unboxing - What Drives Inside the Enclosure, Reds or Blues Review - 2nd Apr 21
Markets, Mayhem and Elliott Waves - 2nd Apr 21
Gold And US Dollar Hegemony - 2nd Apr 21
What Biden’s Big Infrastructure Push Means for Silver Price - 2nd Apr 21
Stock Market Support Near $14,358 On Transportation Index Suggests Rally Will Continue - 2nd Apr 21
Crypto Mine Bitcoin With Your Gaming PC - How Much Profit after 3 Weeks with NiceHash, RTX 3080 GPU - 2nd Apr 21
UK Lockdowns Ending As Europe Continues to Die, Sweet Child O' Mine 2021 Post Pandemic Hope - 2nd Apr 21
A Climbing USDX Means Gold Investors Should Care - 1st Apr 21
How To Spot Market Boom and Bust Cycles - 1st Apr 21
What Could Slay the Stock & Gold Bulls - 1st Apr 21
Precious Metals Mining Stocks Setting Up For A Breakout Rally – Wait For Confirmation - 1st Apr 21
Fed: “We’re Not Going to Take This Punchbowl Away” - 1st Apr 21
Mining Bitcoin On My Desktop PC For 3 Weeks - How Much Crypto Profit Using RTX 3080 on NiceHash - 31st Mar 21
INFLATION - Wage Slaves vs Gold Owners - 31st Mar 21
Why It‘s Reasonable to Be Bullish Stocks and Gold - 31st Mar 21
How To Be Eligible For An E-Transfer Payday Loan? - 31st Mar 21
eXcentral Review – Trade CFDs with a Customer-Centric Broker - 31st Mar 21

Market Oracle FREE Newsletter

FIRST ACCESS to Nadeem Walayat’s Analysis and Trend Forecasts

Stock Market Update: Turn Off the TV

Stock-Markets / US Stock Markets May 05, 2008 - 01:14 PM GMT

By: Dominick

Stock-Markets Last week's tape is evidence of how many traders let the news get to their head, got faked out by the post-Fed selloff, and were short stocks after the meeting only to be forced to cover later in the week, sparking a rally that now has much of Wall Street bullish on stocks. But, after having pounded the table about being long above 1256, which remember was the must-hold big picture target number that had us buying the bottom during the MLK holiday hedge fund blowup and again on the retest, the widespread feelings that it's now time get into the market has us instead eyeing the exits.


Most traders, if they were able to filter out the noise and focus on charts, probably still did what they were trained to do: sell every trendline, Fibonacci retrace, divergence and moving average that appeared to suggest at least an intermediate term top in stocks. TTC, on the other hand, is proof you can do things differently.

A perfect example of how TTC members eschew the news and old techniques that must motivate so many of the losing trades on Wall Street, is our recent analysis leading into the April Federal Reserve meeting. While the majority of traders attempted to guess at what the Fed's policy statement would say and how the market might react, we started the week with a firm wave pattern idea that simultaneously gave us targets on the long and short sides, as well as stops and limits for the trade. With a bit of careful money management, another important concern to TTC members, we were able to turn Fed day into a winning day with a strategy based in no way on fundamental analysis or news. The chart below shows the results of the idea posted above.

To guide us for the remainder of the week, notice the chart above anticipates the possibility of both a decline into previous support, or trades to the long side if higher levels could be held. TTC members were advised to cover shorts on Wednesday as the sudden afternoon selloff from our much expected diagonal moved into our 1387.50 number.

Though the wave count was quite obscured by the volatility surrounding the Fed meeting, with the market feeling comfortable trading above our crucial 1360 pivot level, we were compelled to keep our eyes on the long side of the trade. The chart below, comparing the three major U.S. indices, kept us honest in our expectations and prevented TTC members from being short too soon into what proved to be a significant gap up open Friday morning.

Of course, the other major headline of the week was the reversal in the euro, something this update has called attention to for at least the past several weeks. After recently keeping members from shorting what at first glance may have appeared to be the big reversal, members tracked the diagonal pattern below, with a well-defined target fully expected to provide the fireworks finally seen this week.

It didn't phase members knowing this diagonal idea cut against the grain of Wall Street consensus when first posted, as the dollar floundered in a morass of declining interest rates and economic expectations. Monitoring recognized levels that would invalidate the count, we knew a euro reversal would have repercussions for a wide range of markets, including the S&P 500 and precious metals.

Now that the euro has moved into the target for its selloff, consensus has shifted to trades exploiting dollar strength. Basing our outlook on our charts alone, we actually expect a tradable bounce, or something bigger, in the euro that will once again catch many off guard.

The reversal in the euro comes as the broad stock index reached considerable resistance which our proprietary trend following system, used by members on a daily, weekly and intraday timeframe, has been signaling emphasizing as a crucial make-or-break area. Ironically, market sentiment has become overwhelmingly bullish, but we continue to believe that the most important pivotal level going forward from here is in the vicinity of the 1440 area, and that price action from that level will give us the correct count for the major markets on a weekly time frame. Certainly, both bulls and bears will be fighting it out in the month of May and the winner will take all.

Also making headlines as stocks rally on dollar strength and euro weakness, is the selloff in gold, part of what many are calling the end of the commodities boom. Gold in particular is getting much of

Not only does the Elliott wave count in the chart above foresee new highs in gold over the coming year, the weakness since the March highs has as a distinctly corrective look about it. A significant retracement from recent lows would corroborate the count above and fit nicely with our expectations for the euro. For more, refer to Joe's Precious Points weekly update.

In a word, the technique employed at TTC can be called “unbiased”. Liberated from preconceived notions about what the market should do, our members learn to listen to what the market is doing, and how to trade accordingly. Through our superior proprietary numbers, trend cycle indicators, cycle projections and Elliott wave analysis, TTC members are able to shut off the TV, tune out the noise and make money doing what we do best: trading the charts.

So, do you want daily updates on precious metals and other markets? Do you want to learn how to trade short term time frames? Would you like access to next week's charts posted in the weekly forum right now? Ten to twenty big picture charts are posted every weekend. But the opportunity to join the TTC community of traders is quickly slipping away from retail investors as we're set to close our doors Memorial Day weekend to all but the institutional traders that have become a large and important part of our membership. If you're really serious about trading, learn more about what TTC has to offer and how to join now .

Have a profitable and safe week trading, and remember:
"Unbiased Elliott Wave works!"

By Dominick , a.k.a. Spwaver
www.tradingthecharts.com

This update is provided as general information and is not an investment recommendation. TTC accepts no liability whatsoever for any losses resulting from action taken based on the contents of its charts, commentaries, or price data. Securities and commodities markets involve inherent risk and not all positions are suitable for each individual. Check with your licensed financial advisor or broker prior to taking any action.

Dominick Archive

© 2005-2019 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

6 Critical Money Making Rules