New York time: 00:00:00
Local time: 00:00:00
Newsletter RSS 


Where To Invest During The Stock Market Collapse!?

Top



Our Services (Video Tour)
         Twitter           Facebook          Subscribe to our newsletter

Sep 04 2011

The US stock market moved significantly lower in August, with S&P500 down to 1100 region once the critical region at 1249 (March 2011 lows) was taken out. Below we have a weekly chart, where you will notice that prices also broke through  the lowest support line of a corrective channel which is a very strong indication of  a completed  wave B)/II) around 1370. In such case we know that market is headed much lower, and the reason is a recovery since March 2008 which was clearly in three waves.


Three wave pattern as we know is a corrective structure, and since market already made one impulse down from 2007 pick, we know that long-term trend has changed from bullish to bearish.  With this being said, investors and traders, who are aware of an extremely bearish technical picture, should move their money out of risky assets into cash.

During the crisis money is also going into the bonds, but this safe-haven may not last long, and here is the reason WHY, taken from the book Conquer the Crash (Chapter 15), written by Robert R. Prechter Jr.

  • “Any bond issued by a borrower who cannot pay goes to zero in a depression. In the Great Depression, bonds of many companies, municipalities and foreign governments were crushed. They became wallpaper as their issuers went bankrupt and defaulted. Bonds of suspect issuers also went way down, at least for a time. Understand that in a crash, no one knows its depth, and almost everyone becomes afraid. That makes investors sell bonds of any issuers that they fear could default. Even when people trust the bonds they own, they are sometimes forced to sell them to raise cash to live on. For this reason, even the safest bonds can go down, at least temporarily, as AAA bonds did in 1931 and 1932.”

However, you can also take advantage during the “stock collapse”! There are many ETF’s that are negatively correlated with stocks, which means they trade higher when stocks are falling. One of them is called SDS (UltraShort S&P500 Proshares). Well, lets take a look the wave count on it.

On SDS daily chart, we can see a very sharp rise from July lows, called an impulsive wave in Elliott Wave theory, followed by a three wave of decline from August pick. A corrective retracement that shows first evidences of a completion around 22 region. Further rise and close above 27 will confirm a bullish trend towards and above 30, while the S&P500 (cash market) will be moving lower.


Will you stay in cash, or will you move your money into assets like SDS is your decision, but keep in mind that there could be a good buying opportunity ahead of us, once the global bear market finds the bottom somewhere below March 2008 low.

Oh and one more thing, "its always better to be prepared than negatively surprised" !!


Are you intra-day trader?! Join us today and get timely and accurate analysis during the "bear market period".


Usd/Chf Reaches A Temporary Top

Top



Our Services (Video Tour)
         Twitter           Facebook          Subscribe to our newsletter

Aug 31 2011

Swiss franc is rising this morning, which is quite interesting as the Swiss National Bank tends to announce measures to weaken the franc. Well, it seems that "interventions" were already priced in the market, which caused a reversal.

Anyway, technical side of the pair is the most important to us, which suggests that top has been reached at 0.8238 about we warned  our subscribers several times this week. The reason of course was five sub-waves within a blue wave (v), which was a final leg within a larger impulsive bounce as shown on the 4h chart. We also mentioned in yesterday video (member only), that we expect larger corrective decline, so don't be surprised to see more weakness on this pair while price trades below 0.8230!

1h chart:




4h chart:


Aud/Usd: Recovery Searching For A Top

Top



Our Services (Video Tour)
         Twitter           Facebook          Subscribe to our newsletter

Aug 31 2011

Aussie rallied into a new high in recent sessions, after the prices were unable to break through the swing lows that we paid attention on in the past week. So as long this pair will be forming higher highs and higher lows, trend will be considered as a bullish, but still corrective!
We are now looking at the updated wave count from August lows which is corrective, showing a double zig-zag pattern with final part; wave (c) in progress. If we are correct, then an impulsive bearish reversal should occur in coming days, but the question is from where!? We will keep an eye on resistance at 1.07M testing right now, and then maybe even at 1.09, where second will equal to the first zig-zag.



Gold: Temporary Top?

Top



Our Services (Video Tour)
         Twitter           Facebook          Subscribe to our newsletter

Aug 24 2011

Gold reversed quite sharply yesterday from 1911 top, a move that shows impulsive personality on a smaller time frame. In fact, prices broke through the blue support line, which is the first but very important step towards the temporary bearish price action. Well, from an Elliott wave perspective, a weakness should not be a surprise after-all, as we can count five sub-waves within a black wave 3. we know that after very five waves, correction follows! As such, we see huge possibilities of a temporary top at 1911, with more weakness to come within a black wave 4 corrective pull-back!



Euro It`s a Better Buy against the Cad Rather than the US dollar

Top



Our Services (Video Tour)
         Twitter           Facebook          Subscribe to our newsletter

Aug 19 2011

Euro is trading higher, showing signs of life after the Spanish government approved additional spending cuts to help achieve deficit target.

For those who want to take advantage of the Euro moves, should take a look on some crosses and go away from the US dollar noise, as Euro has been trading much better lately against the Canadian dollar and others.

The wave count on eur/cad is still pointing higher as shown on the chart below! Pair remains bullish as the most recent price action appears corrective around the top, likely a fourth wave triangle from where bullish break should occur in the near term, and send pair towards 1.44/45.

The triangle pattern contains five waves that subdivide 3-3-3-3-3 and are labeled (a)-(b)-(c)-(d) and (e), and occurs just prior to the final move in the larger pattern. In our case black wave 5 will be the final wave, so watch out for reversal signs once wave 5 progresses.




Corrections on Aud/Usd and S&P Near Completion

Top



Our Services (Video Tour)
         Twitter           Facebook          Subscribe to our newsletter

Aug 16 2011

Today should be a quite interesting day with traders focusing on the German chancellor Angela Merkel and French president Nicolas Sarkozy meeting in Paris; who will attempt to ease market concerns about Eurozone debt troubles.

Why we also think that trading could be interesting is a technical outlook of the S&P Futures count, where a corrective recovery is running out of time. We should see a resolution very soon, which we believe it will be on the downside. We will keep an eye on a possible impulsive reversal from the top, which should send the US dollar higher after-that. In such case commodity currencies, such as Aud, Cad and NZD should weaken against the buck.

Looking at the euro, the overall price action is still very tricky there, but we may see some weakness coming, after German GDP for the first quarter was weaker than expected; 0.1% vs. 05%.

S&P Futures and Aud/usd technical outlook:

Recovery from the lows cannot be counted in five waves, so move is considered as a corrective, part of incomplete downtrend.



Aud/Usd has a very tight correlation with S&P Futures, which in fact also shows signs of a corrective recovery from its low. An impulsive reaction towards or below 1.03 will suggests that correction is done and that market is ready to move much lower.




Gold: Correction Coming

Top



Our Services (Video Tour)
         Twitter           Facebook          Subscribe to our newsletter

Aug 14 2011

Gold reached a new all-time high in this past week, above $1800 per ounce from where we saw almost $100 sell-off till the end of the week. Well, based on the wave structure and substructure (4h chart) of a parabolic rise we would really not be surprised to see further weakness in the coming days, but only temporary as we look for a wave 4 pull-back.

For those who want to join this rally should wait on the solid corrective pull-back first! Now it could be too late.




<< [1-7][8-14][15-21][22-28][29-35][36-42][43-49][50-56][57-63][64-70][71-77][78-84][85-91][92-98][99-105][106-112][113-119][120-126][127-133][134-140][141-147][148-154][155-161][162-168][169-175][176-182][183-189][190-196][197-203][204-210][211-217][218-224][225-231][232-238][239-245][246-252][253-259][260-266][267-273][274-280][281-287][288-294][295-301][302-308][309-315][316-322][323-329][330-336][337-343][344-350][351-357][358-364][365-371][372-378][379-385][386-392][393-399][400-406][407-413][414-420][421-427][428-434][435-441][442-448][449-455][456-462] >>