Wednesday, December 31, 2008

Mobile Trade Alerts In Real-Time

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Crucial market notes and commentary.

We try to predict the nature and direction of the market after careful analysis of the current events that are important to the market and can affect the stock prices. For e.g. how a political development – inside or outside the country - can change the stock prices or how fluctuations in interest rates can affect the stocks and stuff like that.

Mobile Trade Alerts

Tuesday, December 30, 2008

Forex Income Engine Testimonials

I just got a note from Bill Poulos, developer of the brand new Forex Income Engine home study course, where he shares some actual feedback from some of his new students who picked up the course a few weeks ago.

These are 'raw & unedited', but I thought I'd share them with you in case you're 'on the fence' about picking up a copy of this course before the current 'second chance' offer comes down this Thursday, January 1st.

"Hi Bill, I know you will probably hear it a lot, but just to let you know that on my first paper trading tryout with the methods I racked up 46 pips in 3 trades of maybe 10-30 minutes each. One in 15 min candles, and the others in 5 min candles. If my trade account would permit, that would have been $460USD, or in home country dollars, about $867 NZD. One trade before dinner and two since. ciao 4 now. thanks 4 your methods. john k."*

"Your videos are excellent. I had some reservation about the complexity of this method but I can see that it is not that difficult once you master it... I am very glad I purchased your product... Keep up the great work. David K."

"Thus far am very pleased with the method. Every trader has heard the old axiom to 'bu y on a dip and sell on a rally'. The problem for me with that saying has always been that I had difficulty telling the difference between a pullback and a price reversal. I am particularly impressed with the rules of this method that help distinguish that difference. So far I have had four wi nning trades and no losses on my demo account and am up about 3% after 3 days of trading. I look forward to seeing how the method works this coming week. Thanks for a terrific course! Steve J."

To join Bill's students, click here to see if any copies of his course are available:

Good day, good trading, and Happy New Year!

*No representation is being made that these results can or will be obtained in the future, or that losses were not incurred subsequent to the date on which the testimonial was provided. There is a substantial risk of loss associated with trading futures, forex, stocks, and options. Only risk capital should be used.

Monday, December 29, 2008

Weekly Stock Pick

The collapsing global stock markets and economies are creating pressures that in turn, are creating more profit potential than we've ever seen before in the Forex markets. Getting tired of going long in the stock market and getting burned lately? Take advantage now before time runs out on New Years Eve to get the "Forex Income Engine".

"Forex Income Engine" Last Chance - Ends Midnight New Years Eve

Now if you still like stock trading review this this weeks stock pick of mine. First I hope you had a good Christmas after the worst year economically that all of us have ever experienced in our lifetimes. I wish I could share some good news for the equity sector with you, but my chart work is not showing anything good just yet. I’m mostly short, and have been for the last three weeks with decent returns. I am seeing some upside in selected stocks but not that many compared to the short sells. I would be leaning toward the small caps for any upside surprises possibly. I was thinking the Santa Claus rally might materialize but it didn’t that much if at all.

Scanning the stock charts for some low-risk high-reward trade setups this early Monday morning, I’ve zeroed in on a short-sell candidate in the biotechnology sector. I’ve been thinking for quite some time now that healthcare stocks are going to start losing their rich profit margins they’ve been enjoying for quite some time now and with the change of leadership in the White House, and now with this current economic environment, 2009 could be the time the medical stocks start selling off even more than what they have already. In fact I would forecast and predict this year that the healthcare stocks might be the next financial disaster to hit the stock market and economy.

Short-Sell Gilead Sciences. Ticker GILD

Sell Entry: 49.73 to 51.04

Stop-Loss: 51.20

Take Profit Areas

46.81 to 45.35

41.68 to 41.18

35.53 to 33.40

Some of My Reasons for Selling Gilead Short

Number one its showing a major ABC sell setup with a nice tight stop-loss making this stock a very low-risk very high-reward short-sell trade if the market proves me right. Two, way too much optimism. I’m reading current articles from other analysts giving Gilead buy recommendations for a variety of reasons. I see no other short recommendations on GILD right now. Jim Cramer on his “Mad Money” TV Show on December 22nd said “I'm recommending Gilead Sciences and will continue to pull the trigger on that one." Cramer has been wrong so many times this year, it might be continued “Easy Mad Money” to take the other side of the trade on his stock picks right now. Three, the market is still heading south in my opinion. Four, the medical sector rich profit margins are going to get squeezed in this economic environment.

Gilead Sciences Company Profile

Gilead Sciences, Inc. (Gilead) is a biopharmaceutical company that discovers, develops and commercializes therapeutics in areas of unmet medical need. The Company has United States and international commercial sales operations, with marketing subsidiaries in Australia, Austria, Canada, France, Germany, Greece, Ireland, Italy, New Zealand, Portugal, Spain, Switzerland, Turkey, the United Kingdom and the United States. Its commercial teams promote Truvada, Viread, Emtriva, Hepsera, AmBisome, Letairis and Flolan through direct field contact with physicians, hospitals, clinics and other healthcare providers. Its corporate partner, Astellas Pharma, Inc. (Astellas), promotes, sells and distributes AmBisome in the United States. In September 2007, it acquired Nycomed Limited, a wholly owned Irish subsidiary of Germany-based pharmaceutical company, Nycomed GmbH.

Click here to review and Trial the Trading Software I used in determining my by short position on GILD. Enter I2S in the "coupon code" field to receive a 5% discount.

Click the Gilead Sciences Stock Chart for a larger view.

Gilead Sciences Stock Chart

Thursday, December 18, 2008

Circumstances & Trading Success

By Van K. Tharp, Ph.D.

The Right Circumstances and Trading Success

Van Tharp 2009 Trading Workshops

In my last update, I discussed Malcolm Gladwell’s new book Outliers. In that book Malcolm discusses what might be involved in being a hugely successful person. Malcolm asks different questions in his quest for success than I do as a modeler. As a modeler, I look for what successful people do in common. Gladwell, in contrast, looks for what is common about their background. Since our questions are different, we tend to come to different conclusions.

Gladwell generally concludes that successful people are influenced by the following factors:

1) The amount of practice they give to their craft. In particular, those who achieve 10,000 hours of practice (especially if it is the right kind of practice) are the ones with outstanding success.

2) When they were born. For example, children who were born so as to have the most maturity before a particular cutoff date have a huge advantage. The oldest children are typically the most mature and thus excel and get more opportunities and training. For example, almost all NHL hockey players are born in the first three months of the year. When the tryouts occur they are the most mature so they have a huge advantage. And those who are the most mature, get into the accelerated programs.

3) What kind of values their family had. For instance, middle and upper class children get training from their families about success that poor children just do not have.

4) Being born at the right age and time to take advantage of some particular change in society.

5) Their cultural legacy, which might include hard work (e.g., the rice farmer legacy), or the need to defend yourself from any insult (e.g., the legacy of honor). However, the latter is seldom an edge for success.

One of these, in my opinion, has no relationship to trading success and that is one’s birth date. There is no advantage, in my opinion, to being born on any particular month for trading success. I cannot imagine any circumstance in which that currently applies to trading.

However, there are definitely big changes in society that occur and being at the right place at the right time to take advantage of that can be a huge advantage. I can think of one trader in particular for whom that was true. When I interviewed him as part of my modeling work, I promised him that I would not mention his name, so we’ll just call him the Mechanical Trader.

The Mechanical Trader, in my opinion, has several huge edges that amount to being at the right place at the right time with the right skills and knowledge. Isn’t that what Gladwell talks about extensively in his book?

First, the Mechanical Trader went to one of the top engineering schools in the world—one that does financial modeling. As part of his early training, he became a programming expert way before most people even knew about computers in the mid-1960s. He spent six months testing trend-following systems on a big main-frame computer with punch cards. When I was at his house in 1990, all of his trading programs on his personal computer were written in assembly language.

Second, the Mechanical Trader was exposed to some of the early geniuses of trend following, especially Richard Donchian. Thus, he was one of the first, if not the first, computerized trend follower. That was a huge edge, in my opinion. I’m not sure what his system was, but it was probably as simple as a moving average crossover, such as those advocated by Donchian. You might have trouble using one of those today, but they were much easier when few people used them.

Third, the Mechanical Trader thoroughly understood the power of position sizing. More importantly, he had developed an algorithm to use position sizing to go for goals that most people would consider impossible. In addition, he began by trading commodities before the field was dominated by huge CTAs.

So let’s look at the combination of edges that he had. First, he was one of the very first computerized trend followers. This alone was a huge advantage at a time when no one else had it. Second, he traded in a highly leveraged market that was full of trends and he understood how to use position sizing to make huge amounts of money. He was probably the only person around who had that combination of edges.

Lastly, he understood that the golden rule of trading was to cut your losses short and let your profits run through a trend-following model. And most importantly, he understood that if he had trouble doing that, he needed to work on the source of the problem—his self.

Imagine the edge of being the first computerized trend follower in a highly leveraged area, knowing both the power of using position sizing to achieve huge returns and understanding the importance of working on yourself to be sure that you do not make mistakes.

I think there are probably others who have had huge edges in trading by being at the right place at the right time, but none stand out to me as much as the Mechanical Trader.

Presently, we have the ability to give people a huge edge in trading and that edge could take a number of forms. Here are some of the edges that you could be able to take advantage of right now.

First, I tend to doubt that there are any particular computer advantages these days. But I think very few people realize that it is possible to easily develop a Holy Grail system that fits any one kind of market. The real secret is to understand that it is only a Holy Grail System for that one kind of market and when you try to make it fit all types of markets, you will have major problems. I don’t know how long this will be a major edge, but it is certainly is an edge now.

Second, many people are starting to understand the importance of position sizing, but few people understand that the purpose of position sizing is to meet your objectives. And I think that very few people understand that it is only through position sizing that you meet your objectives. The purpose of a good system is just to make it easier to meet your objectives.

Lastly, many people still have not understood that all of this is impossible if you don’t know yourself. For example, how can you have objectives if you don’t understand who you are? And even more importantly, how can you reach your objectives if you don’t have enough control over yourself to keep from making mistakes? So gaining self-control is also a huge edge.

Click here for Dr. Van Tharps Peak Performance Trading Home Study Programs

Wednesday, December 17, 2008

Daily Forex Forecast Outlook

Click Here to Trade and Profit from the Forex Market In Only 20 Minutes Per Day

US Dollar Index

The March Dollar was lower overnight as it extends this month's decline and is trading below the 50% retracement level of the July-November rally crossing at 80.98. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If March extends this month's decline, the 62% retracement level of the July-November rally crossing at 78.89 is the next downside target. Closes above the 20-day moving average crossing at 86.15 are needed to confirm that a short-term low has been posted. First resistance is the 10-day moving average crossing at 84.93. Second resistance is broken support marked by the reaction low crossing at 85.34. First support is the overnight low crossing at 80.36. Second support is the 62% retracement level crossing at 78.89.

EURUSD

The March Euro was higher overnight as it extends this month's rally and is trading above the 50% retracement level of the July-October decline crossing at 140.32. Stochastics and the RSI are overbought but remain neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally, the 62% retracement level crossing at 144.301 is the next upside target. Closes below the 20-day moving average crossing at 129.902 would temper the near-term friendly outlook in the market. First resistance is the overnight high crossing at 141.950. Second resistance is the 62% retracement level crossing at 144.301. First support is the 10-day moving average crossing at 132.510. Second support is the 20-day moving average crossing at 129.902.

GBPUSD

The March British Pound was slightly lower overnight as it consolidates some of Tuesday's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 1.5544 are needed to confirm that a short-term low has been posted. If March renews this fall's decline, monthly support crossing at 1.4004 is the next downside target. First resistance is the overnight high crossing at 1.5700. Second resistance is the reaction high crossing at 1.6066. First support is the 20-day moving average crossing at 1.5031. Second support is the 10-day moving average crossing at 1.4982.

USDCHF

The March Swiss Franc was higher overnight as it extends Monday's rally. Stochastics and the RSI are overbought but remain bullish signaling that sideways to higher prices are possible near-term. If March extends the overnight rally, the 50% retracement level of the March-November decline crossing at .9136 is the next upside target. Closes below the 20-day moving average crossing at .8428 would temper the near-term friendly outlook in the market. First resistance is the overnight high crossing at .9053. Second resistance is the 50% retracement level crossing at .9136. First support is the 10-day moving average crossing at .8523. Second support is the 20-day moving average crossing at .8428.

USDCAD

The March Canadian Dollar was higher overnight as it extends last week's rally above the 20-day moving average. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 82.54 are needed to confirm that a short-term low has been posted. Closes below the 10-day moving average crossing at 80.24 would temper the near-term friendly outlook in the market. First resistance is the overnight high crossing at 83.67. Second resistance is November's high crossing at 87.05. First support is the 10-day moving average crossing at 80.23. Second support is this month's low crossing at 76.93.

JPYUSD

The March Japanese Yen was higher overnight as it extends this fall's rally. Stochastics and the RSI are overbought, diverging but are turning neutral to bullish hinting that additional gains near-term are possible. If March extends the rally off November's low, .11500 is the next upside target. Closes below the 20-day moving average crossing at .10782 are needed to confirm that a short-term top has been posted. First resistance is last Friday's high crossing at .11373. Second resistance is .11500. First support is the 10-day moving average crossing at .10967. Second support is the 20-day moving average crossing at .10782.

Successful Forex Trading On Your Schedule

Tuesday, December 16, 2008

Forex Income Engine Ends Today

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If you see a "sold out" message when you get to that page, please put your name on the waiting list. If the developer decides to ever offer this course again, you may be among the first to be contacted. However, I can't say when that may happen.

Good day and good forex trading!

Monday, December 15, 2008

Weekly Stock Pick

Scanning the stock charts this early Monday morning, I’m seeing that the market is getting ready to fall again into an ending 5th wave of this current downtrend, which would then make me a big buyer at least for the short and intermediate term, and even possibly the long term, if it does happen. I really don’t expect a sustainable long-term rebound to the upside here, but the market could trade up possibly because the Fed is meeting today and tomorrow and the market is looking for them to lower rates. Maybe the rate reduction is already priced in? I'm betting it is and my shorts will do better than my longs this week. Get ready for options expiration at the end of the week. It should be very volatile to be sure.

My low-risk high-reward trade setup stock scans this morning popped up one of the world’s biggest steel producers as a short sale. I would like to buy into this steel producer but not at this price. I’m looking for the price of this steel producer taking another possible discount of 25% to 40% from its current price before the selling pressure stops. See below for more analysis on this short sale stock pick.

Click here for the "Forex Income Engine" Home Study Program.

Short Sell POSCO. Ticker PKX

Sell Entry: 65.65 to 74.04

Stop-Loss: 75.80

Take Profit Areas

55.50

45.35

35.20

POSCO News and Analysis

Posco is saying they are going to invest $4.4 billion in 2009 to expand capacity and rebuild their steel furnaces. They are betting against the rest of the steel makers currently who are lowering their production capacity. Posco is trying to get more market share when the steel market turns around in the future. Posco is one of the only steel producers currently to maintain is production volumes despite the global slowdown. Some other Asia steel producers are doing the same as Posco. In the long term, they should succeed with this plan I believe. In the short term, I think it will be a negative for the share price, but actually making it a great buying opportunity of these shares a little later on. In the meantime I’m sticking to my short-sell position here on Posco.

I stick to my views that Asia is still the place to be invested short, intermediate and especially long term, and that Asia really does have the ability to suck up any excess supply with their 2009 forecasted 4% to 5% GDP growth and the associated demand that comes from that kind of growth. Although, be careful, Asia could head into a depression with the Western world, which that recipe is already in place right now if the USA and European governments and central banks don’t fix the credit crisis, liquidity problem, and resulting financial panic right now. I’m at least expecting a prolonged recession for the west. As far as a depression for the west and or the rest of the world, I hope not, but I’m not counting it out just yet. What is done now by the powers that be to fix this mess will depend on whether it’s a recession only or a depression.

POSCO Company Profile

POSCO is an integrated steel producer in Korea. The Company produced approximately 32.8 million tons of crude steel, during the year ended December 31, 2007 (including 2.5 million tons of stainless steel), a substantial portion, of which was produced at Pohang Works and Gwangyang Works. Pohang Works has 15 million tons of annual crude steel and stainless steel production capacity, and Gwangyang Works has an annual crude steel production capacity of 18 million tons. POSCO manufactures and sells a diversified line of steel products, including hot rolled and cold rolled products, plates, wire rods, silicon steel sheets and stainless steel products, and it is able to meet a range of customer needs from manufacturing industries that consume steel, including automotive, shipbuilding, home appliance, engineering and machinery industries.

Click here to review and Trial the Trading Software I used in determining my by short position on PKX. Enter I2S in the "coupon code" field to receive a 5% discount.

Click the Posco Stock Chart for a larger view.

Posco Stock Chart

Friday, December 12, 2008

Forex Daily Forecast Outlook

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Dollar Index

The March Dollar was lower overnight as it extends this week's decline. Stochastics and the RSI remain bearish signaling that sideways to lower prices are possible near-term. If March extends this week's decline, the 38% retracement level of the July-November rally crossing at 83.06 is the next downside target. Closes above the 20-day moving average crossing at 87.11 are needed to confirm that a short-term low has been posted. First resistance is broken support marked by the reaction low crossing at 85.34. Second resistance is the 10-day moving average crossing at 86.73. First support is Thursday's low crossing at 83.99. Second support is the 38% retracement level crossing at 83.06.

Euro

The March Euro was steady to slightly higher overnight as it extends this week's rally. Stochastics and the RSI remain bullish signaling that sideways to higher prices are possible near-term. Thursday's close above the reaction high crossing at 132.350 confirms that a bottom has been posted. If March extends this week's rally, the reaction high crossing at 137.720 is the next upside target. Closes below the 20-day moving average crossing at 127.938 would temper the near-term friendly outlook in the market. First resistance is the overnight high crossing at 133.720. Second resistance is the reaction high crossing at 137.720. First support is the 10-day moving average crossing at 128.813. Second support is the 20-day moving average crossing at 127.938.

British Pound

The March British Pound was lower overnight as it consolidates some of Thursday's rally. Stochastics and the RSI are turning bullish hinting that a short-term low might be in or is near. Closes above the reaction high crossing at 1.5544 are needed to confirm that a short-term low has been posted. If March renews this fall's decline, monthly support crossing at 1.4004 is the next downside target. First resistance is the overnight high crossing at 1.5100. Second resistance is the reaction high crossing at 1.5544. First support is last Thursday's low crossing at 1.4500. Second support is monthly support crossing at 1.4004.

Swiss Franc

The March Swiss Franc was higher overnight as it extends Wednesday's rally above moving average resistance. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at .8495 are needed to confirm that a bottom has been posted. If March renews this fall's decline, monthly support crossing at .8071 is the next downside target. First resistance is the overnight high crossing at .8541. Second resistance is the reaction high crossing at .8944. First support is the 10-day moving average crossing at .8364. Second support is last Friday's low crossing at .8201.

Canadian Dollar

The March Canadian Dollar was lower overnight due to profit taking as it consolidates some of Thursday's rally. Stochastics and the RSI are bullish signaling that sideways to higher prices are possible near-term. Closes above the reaction high crossing at 82.54 are needed to confirm that a short-term low has been posted. Closes below the 10-day moving average crossing at 79.67 would temper the near-term friendly outlook in the market. First resistance is Thursday's high crossing at 82.28. Second resistance is the reaction high crossing at 82.54. First support is the 10-day moving average crossing at 79.67. Second support is November's low crossing at 77.00.

Japanese Yen

The March Japanese Yen was higher overnight as it extends the rally and has broken out above October's high crossing at .11055. Stochastics and the RSI are overbought, diverging but are neutral to bullish signaling that sideways to higher prices are possible near-term. If March extends the rally off November's low,.11500 is the next upside target. Closes below the 20-day moving average crossing at .10667 are needed to confirm that a short-term top has been posted. First resistance is the overnight high crossing at .11373. Second resistance is .11500. First support is the 10-day moving average crossing at .10850. Second support is the 20-day moving average crossing at .10667.

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Thursday, December 11, 2008

Fed Expected To Cut Interest Rates Next Week

If the Fed lowers interest rates, the dollar would normally go lower too. Click here to review a forex trading method that only takes 20 minutes a day to trade and profit from.

Fed Expected To Cut Rates Near Zero Next Week, Will The Dollar Falter?

The Federal Reserve Open Market Committee (FOMC) is scheduled to announce its final monetary policy decision for the year and almost certainly this cycle next Tuesday. According to the markets, the future is clear. Fed Funds futures are pricing in a 94 percent probability that Chairman Ben Bernanke and his fellow rate setters will cut the benchmark lending rate another 75 basis points to a mere 0.25 percent.

The Economy And The Credit Market

The Federal Reserve Open Market Committee (FOMC) is scheduled to announce its final monetary policy decision for the year and almost certainly this cycle next Tuesday. According to the markets, the future is clear. Fed Funds futures are pricing in a 94 percent probability that Chairman Ben Bernanke and his fellow rate setters will cut the benchmark lending rate another 75 basis points to a mere 0.25 percent. This would be the lowest level for the overnight lending rate in more than 35 years and would force the policy authority to find an alternative means to encourage lending and revive economic growth. And, an alternative they will certainly have to find. With the central bank guaranteeing loans and providing near unlimited liquidity to the market, financial institutions are hesitant to take counterparty risk and lend to each other. What’s more, the worst of the global recession is still ahead; and frozen credit will not offset job losses and income deflation for consumers.

The Financial And Capital Markets

Capital markets have seen modest improvements over the past week; but price action for the past few months reveals the true health of trader and investor confidence. Congestion has held equities, commodities, commercial bonds and other risk-related assets since the panic selling through October was finally curbed by the cumulative efforts of the central bank and Congress. However, with the Fed soon to hit the bottom of the barrel on monetary policy and lawmakers running out of money for all the industries that are asking for alms, it seems further pain is inevitable. Like authorities were forced to do with Leman Brothers in the financial sector, they will eventually have to let major firms in other industries go bankrupt or run the risk of capsizing the entire economy. Investors know that the recession is global and cannot be fixed on a national level; so seeking return when risk is so abundant is out of the question.

By DailyFx

Click here to quickly and flexibly achieve freedom trading the currency markets with the Forex Income Engine Home Study Course.

Wednesday, December 10, 2008

EURUSD: A Lull Before the Storm?

For six weeks now, the euro-dollar exchange rate, known to forex traders as the EURUSD, has gone nowhere. While we've seen some big ups and downs, their net progress has been close to zero: Today, the rate stands near $1.29, where it was in late October.

You may say, after last week's devastating U.S. jobs report the dollar has already lost big – and it's only the beginning. From the standpoint of the conventional economic wisdom, that's true. Of course, it's the same "wisdom" that was calling for the dollar's complete collapse back in July of this year, when the EURUSD was at $1.60. Since then, the U.S. economic picture has only gotten weaker – while the U.S. dollar has only gotten stronger, pushing the EURUSD as low as $1.24 in late October.

Now you understand why us Elliotticians don't put too much faith in the presumed effects of the economy on the markets, and vice versa. For Elliotticians, market forecasting is all about reading chart patterns.

Wave analysis describes thirteen patterns that all market action falls into. The most basic of those are an impulse and a correction. An impulse consists of five non-overlapping waves labeled 1-2-3-4-5. Impulses unfold in the direction of a larger trend. An Elliott wave correction consists of three overlapping waves, labeled A-B-C; corrections move against the larger trend.

Now, going back to this month's rally in the EURUSD, take a look at its internal structure in the chart below. (You can see this chart fully labeled with Elliott wave symbols online now, inside the December 9 Currency Specialty Service daily forecast for the EURUSD:)

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Remember, Elliott wave impulses do not overlap, while corrections do. Would you say that the latest EURUSD rally (between the second set of trendlines) looks impulsive or corrective?

The corrective internal structure of this rally is just one of the reasons why Jim Martens posted this note for his subscribers inside Tuesday's (Dec. 9) Currency Specialty Service intraday updates:

"At this moment it's all about risk management. We believe a turn is underway, and that risk is defined and limited relative to reward."

The EURUSD may indeed be offering a good opportunity right now – and, in Jim's words, "risk/reward is on our side." Find our more now with Currency Specialty Service.

Tuesday, December 09, 2008

Forex Income Engine Launch Ends In 7 Days

Collapsing global stock markets are creating opportunities in the forex market.

Theres a brand new Forex method that 'flip flops' the approach most people take, and shows you how select groups of traders can get in on the huge volatility in the Forex markets right now that's being created by the problems in the other global markets.

New Free Forex Training Videos

In the past week, nearly 77,000 traders got exclusive access to 30+ trader Bill Poulos's complimentary 3-part "Flexible Forex" training videos. These videos revealed his recent Forex discovery that shows you how to manage risk first when placing a trade, and then look for a profit as quickly as possible, and as many times a day as possible, all according to your schedule.

So if you have any interest in discovering how to finally become a real independent trader in the Forex markets, where you always know what to do, no matter what happens get ready for the following.

Forex Trading On Your Schedule

Bill released a few copies of his new trading method to a few groups of "beta testers" last month, and from the early feedback he's been receiving, it looks like this may be a turning point in Forex trading.

Good News For Individual Forex Traders

Because Bill does everything in his power to give you the "keys to the kingdom" where you understand exactly what to do when you go to place a trade. There's never any second guessing or wondering.

Caution this is not for "systems junkies", or individuals who like to let others make their trading decisions. It is for traders who like to have full control of their destiny in the markets.

Forex Trading Designed For Your Schedule

Bill designed this new method with you and your schedule in mind. It's all about giving you the flexibility you need in your busy day to trade in as little as 20 minutes, or even all day long if that's what you have time for. But he's only planning on releasing 250 copies in the next week that show you how to find trade setups quickly, protect your position with a sort of "risk shield", and then look for profit as fast as possible so you can move on to the next trade.

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Good day and good forex trading!

Monday, December 08, 2008

Weekly Stock Pick

Scanning the charts this early Monday morning, I’m looking at a low-risk high-reward short-sell trade setup on a huge pharmaceutical company. The medical sector and pharmaceutical companies have enjoyed some of the largest profit margins in earnings universe for quite some time now. Fundamentally think these record high profit margins will come to an end, at least for awhile. Technically I could care less about good or bad fundamentals right now with the bear market intact. The trend is my friend for lower prices until I see confirmed reversals to the bull trend.

I think the next big disaster that will hit the markets will be in the medical sector. President Elect Obama, and his new Secretary of State Hillary Clinton should be going after providing more affordable health care for the poor and middle class, and the medical companies could take more of a beating they’ve taken so far in this bear market. Shrinking cashflows and profit margins can mean only one thing, shrinking EPS.

For the big Pharmas, their drug pipelines are shrinking as well right now. Merck chairman, Richard T. Clark said, "We anticipate that top-line growth will be offset by the effects of a volatile global economy, fluctuations in the foreign exchange markets, as well as continued challenges for certain key products.” The very large size of these big drug companies also keeps them from continued strong growth, especially in this current deflation economy. With more negatives and positives right now the big drug companies should stay under selling pressure for awhile.

Short-Sell GlaxoSmithKline. Ticker GSK

Sell Entry: 35.88 to 38.32

Stop-Loss: 38.85

Take Profit Areas:

30 to 20

On a technical basis long term, its looks like there’s more long positions losing money than in the ones making money on Glaxo. Any bounces up should meet more selling pressure with lower prices to come into 2009 in my opinion.

GlaxoSmithKline Company Profile

GlaxoSmithKline plc (GSK) is a global healthcare group engaged in the creation, discovery, development, manufacture and marketing of pharmaceutical and consumer health-related products. It has and operations in some 114 countries, with products sold in over 140 countries. The Company operates in two segments: Pharmaceuticals (prescription pharmaceuticals and vaccines), and Consumer Healthcare (over-the-counter medicines, oral care and nutritional healthcare). The markets for its products are the United States, France, Japan, United Kingdom, Italy, Germany and Spain. In June 2008, the Company completed the acquisition of Sirtris Pharmaceuticals, Inc. (Sirtris). Sirtris will become part of GSK's Drug Discovery organization.

Click here to review and Trial the Trading Software I used in determining my by short position on GSK. Enter I2S in the "coupon code" field to receive a 5% discount.

Click the Glaxo Smith Kline Stock Chart for a larger view.

Glaxo Stock Chart

Wednesday, December 03, 2008

Collapsing Global Stocks and the Forex Market Opportunity

Earlier this year, during a late-night Forex trading research session, one of the industry's most respected trading educators made a discovery around day trading Forex that he's finally ready to share with you, and from what I've seen, no one is Trading Forex like this Yet. Not to mention this completely turns traditional "day trading" on its ear.

He recorded a new training video this past weekend that "pulls back the covers" on this discovery & reveals how you can shield your portfolio from risk, especially if you're inexperienced & have little time.

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The Big Surprise

During his research, he confirmed what I and others suspected for a long time:

The collapsing global stock markets and economies are creating pressures that, in turn, are creating more profit potential than we've ever seen before in the Forex markets.

That may come as a big surprise, especially if you're new to trading, but he explains in his training video why this is happening, and how you can get in on it.

You'll also discover:

2 "retracement tricks" most traders flat-out MISS, which, if you know how to spot them, can turn an otherwise losing trade into a profit powerhouse.

The huge "edge" you get over other traders when you automatically identify the predominant trend at any point in time, and then "throw yourself in front of it".

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Good day, good investing and trading.

Tuesday, December 02, 2008

Weekly Stock Pick

Since last Thursday was Thanksgiving with the market closed and Friday was a short session with thinly traded volume, I decided to post my weekly stock pick today Tuesday to let the Monday trade give me some idea to where the market was heading, and I’m sure glad I did after the “recession report” came out and the market promptly tanked big time.

Scanning the stock charts early this Tuesday morning, I’m seeing a what I consider a low-risk high-reward short-sell on a gold miner. Longer term I think gold is heading higher, but so is everyone else, and yet it has not happened in a bigger way yet. Why is this? Possibly demand destruction is the culprit? Or is it the basics of fear and greed, and those who are in cash are staying in cash for further news on the financial outlook, and those who got killed already are too afraid to jump back in. The recipe for depression is also in place right now. If things are not fixed soon, we could be going from recession to depression in certain parts of the world. I’d like not to think so, but do watch out for such. Deflation is still there until growing economies of the world come back along with inflation.

Citibank to a lot of analysts and traders are putting buy ratings on Gold and Gold stocks right now. Longer-term I would too, but not so fast in the short to intermediate term. In the mean time, demand destruction seems to be still in place, and solid positive sentiment and money backing it up may still be sitting in cash waiting to jump in later to support prices. Solid support for the Gold price and Gold stock prices may still be further ahead. As I’ve said before, the market looks like it could have a intermediate bounce up, but there better be some real good fundamental reasons why it should or its back to trading the primary trend which is still down.

Warning: Don’t take this trade if you will not be using stop-loss. The stop-loss on this trade could be 15% or more depending upon your sell entry point.

Sell-Short Yamana Gold. Ticker AUY

Sell Entry: 5.68 to 4.82 Range

Stop-Loss: 6.07

Take Profit Areas

3.80 – Initial Risk Target

2.78 to 1.76

1.31 to 1.04

I don’t normally put buy or sell recommendations on stocks trading below 12 dollars a share, but many of the biggest companies in the market are trading well below 12 these days. Some of you may think I’m crazy putting a sell like this on. I just follow what this crazy market is telling me, and use stop-loss if I’m crazier than the market makes me think.

Jon Najarian of OptionsMonster.com is expecting the market to trade up for the rest of the year. Maybe he’s going to change that view after yesterday’s recession report and big downside market move, then again maybe not. I’m still going short on AUY with my system. Najarian sees unusual volume in options contracts with institutional money flowing to gold miners. With Citibank and many others possibly buying long right now, if I’m right, I’m going to profit nicely on the short side. If I’m wrong, I’ll take the stop-loss and move on. The great thing about trading is that there’s always another low-risk high reward trade setup coming along to partake in.

Lastly, calling a bottom in this extremely volatile market has proven to be a disaster for everyone, myself included especially during October. Recovery for these blown up mining and all other stocks is likely to include big ups and downs before we eventually find a solid bottom of support. The precious metals mining sector exploded just like the rest of the market, and it’s supposed to be a safe haven investment place. This is the new globalized century folks. Out with the old in with the new in my opinion. Old thinking and ideas I don’t think will work anymore or at least for awhile right now. The market has just proved that big time this last year.

Yamana Gold Company Profile

Yamana Gold Inc. (Yamana) is engaged in the acquisition, exploration, development and operation of mineral properties. Yamana’s principal product is gold. The Company has gold production, development stage properties, exploration properties and land positions in Brazil Chile, Argentina, Mexico, Honduras, Nicaragua and the United States. A total of 104,764 ounces of gold were produced by the Company’s mines during year ended December 31, 2007. During 2007, the Company’s projects include Chapada Mine (Brazil), Sao Francisco Mine (Brazil), Jacobina Mining Complex (Brazil), San Andres Mine (Honduras), Fazenda Brasileiro Mine (Brazil), Alumbrera Mine (Argentina), El Penon Mine (Chile), Minera Florida Mine (Chile) and Rossi Property (United States). On October 13, 2007, Yamana acquired Northern Orion Resources Inc. As of November 5, 2007, Yamana had acquired approximately 90% interest in Meridian Gold Inc.

Click here to review and Trial the Trading Software I used in determining my by short position on AUY. Enter I2S in the "coupon code" field to receive a 5% discount.

Click the Yamana Gold Stock Chart for a larger view.

Yamana Gold Stock Chart

Monday, December 01, 2008

What Is Black Friday?

Normally I would be posting my Weekly Stock Pick this Monday, but with the Thanksgiving holiday last week with no trading on Thursday and very thin trading volume on Friday, I decided to post this weeks stock pick tomorrow Tuesday to let a full day of trading happen today before posting a buy or sell stock pick this week.

The market looks like it could have made an intermediate term bottom possibly, but I'm not so sure yet, and right now the market could still go down more, especially if more bad news is going to be reported. Intermediate term, I am looking for a upside bounce to previous support levels which are now resistance levels. Longer term I continue to think the market will trade to lower prices for a variety of reasons. It takes time to fix things of this magnitude, and we'll just have to wait and see how the financial fixing all works out.

What Is Black Friday?

Not many people know that the original 'Black Friday' refers to September 24, 1869, when a group of speculators attempted to corner the gold market. They failed, and the resulting collapse in gold, and then stocks, became known as Black Friday.

But last Friday is also known by shoppers and retail merchants as 'Black Friday,' referring to the Friday after Thanksgiving Day. Usually one of the busiest shopping days of the year, Black Friday is said to turn the retail industry's bottom line from red to black. But this year may be different, with shoppers staying away due to economy fears.

This may be more like 'Red Friday' for merchants, trying to entice more customers in with large sales and price reductions. And even though recent today's news reported a Wal-Mart worker dying from eager crowds trampling over him to get to sale items in the store, many stores may not have seen the kind of crowds they needed for a good start to the holiday season.

The point is, there's likely to be more volatility in these markets going forward. Which makes now a great time to learn options, and / or take your options education to the next level.

Some of our users are reporting huge gains, from playing the downside in recent months using options. Those of you with stock losses, may want to consider using specific long option strategies to get you back to break even faster.

So in the spirit of 'Black Friday' we're sharing with you several of our best options trading and education products.

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This is a way of creating some 'Recession Relief' and helping you get a hold of one of the options education training you need to survive and thrive in these markets.

Good day, good investing trading, and Happy Holidays.