Today the central bank disclosed the results of the European Banks stress test. Let’s see how the market will digest the data before reopening on Monday. Anyhow, expect some volatility early this week and, if that happens, stay tough and kick the chimp away. Going back to the markets, here are my views of what is going on and the charts that I will look into going next week: [click to continue…]
Markets reward rational thinking while punishing fear. This may sound like a cliché, but it’s painfully true. During times of noise and confusion, it is easy for a speculator or an investor take (or not take) actions based on emotions instead than on rational considerations. [click to continue…]
While the stock market goes through the biggest pullback in over two years and the Dollar Index is trading at levels not seen since 2010, on a weekly basis, there is a lot of indecisiveness in all major currencies, commodities and Financials. [click to continue…]
Trading is known for its powerful psychological elements. Being aware that emotions are always right on your doorstep is the first step to build a sustainable trading business… or build a different business! In a previous post I wrote about trading and gambling issues. That article got some interest and I had a few people that wrote me to share their experiences. [click to continue…]
We start this edition of our weekly market update by presenting price and charts developments in United States Dollar, Gold, Silver, Palladium, US Stock Indexes, NZD-JPY, USD-BRL, Live Cattle, Eurodollar and Cotton markets. All these markets present special situations where trends -originated from breakouts out of classical chart patterns- are already in play.
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Here and there I receive screenshots of equity curves that look like a stage of the tour the France. [click to continue…]
After extended periods of low volatility, a series of profitable trades or having accumulated several open positions, is easy to find yourself with a portfolio out of balance. Either it is over-leveraged or not enough diversified. Leverage is quite easy to keep under control since it can be expressed with a simple $/$ ratio. On the other hand, short term portfolio diversification and short term correlation between positions is less easy to manage. [click to continue…]
The following are 5 of my favorite TED Talks on subjects that I believe can inspire, educate and entertain traders and speculators. I hope you enjoy them! [click to continue…]
I expect the predominant theme for the rest of the year and 2015 to be a strong Dollar. After a decade of sideways consolidation, this month we have started to see early signs of a new trend in the back. This event alone recently brought two changes in the behavior of several FOREX cross pairs and commodity. In all these markets I expect new trends to flourish in the months to come. Why I’m saying this and how much I expect the Dollar to move is discussed later in this report. [click to continue…]
Why some traders succeed and others fail? If you are a trader yourself I’m sure you have already asked yourself this question several times and you probably got several good answers too. Discipline to commit, faith on our own capability, emotional strength, motivation, etc. are all leading indicators of success. [click to continue…]
Here are my views of what is going on in the markets and the charts that I’m going to look at entering into next week.
Patterns in play in December Gold, December Silver, Euro-Japanese Yen, Canadian Dollar, Soybeans, Gold,
Patterns in formation: Australian Dollar, Singapore Dollar, January Platinum, December 2016 Eurodollar, December Cotton, December Natural Gas
Patterns completed last week: Soybeans Meal, Wheat.
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In this edition of the FOREX, Futures and Equities Classical Chart Patterns Report we are going to review patterns in play in Australian Dollar, Australian Dollar/Japanese Yen, Australian Dollar/New Zealand Dollar, Euro/Yen, United States Dollar/Canadian Dollar, Gold and Silver, Grains; an anticipation setup forming in the Singapore $/US$ and three setups that were completed last week in the British Pound/Canadian Dollar, United States Dollar/Japanese Yen cross rates. [click to continue…]
The idea that the more you pay, the more you get and the more you get, the better off you are, not always holds true. If you consider the data and the information available to retail traders, you can spend from a few hundreds to thousands of dollars a month just for trading news feed and data.
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Hi everybody, hope you are enjoying your weekend with family and friends. As usual, I’m here on Sunday with my review of classical chart patterns that are either in play or information in the main US futures markets and key currency cross rates. [click to continue…]
Recent price developments in precious metals leave no doubts that Silver is – and has been – the weaker material in terms of price action and long term charts are suggesting that even more bearish implications can be just behind the door if it cannot hold above $18.6/ounce. [click to continue…]
Think about your trades like at the bricks you are lying down to build a tall building. This building can be your house, the stairway to your financial freedom or the tower of your success. You choose your favorite metaphoric construction. [click to continue…]
Due to technical issues, this week’s report is coming in a reduced version.
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Many new traders find difficult to follow their trading rules. Have you ever wondered why?
There is more than one reason behind this common issue. The most important is a lack of self-confidence and a lack of confidence in their strategy. These traders tend to break these rules because of the circumstances and the uncertainties surrounding them. [click to continue…]
I can make a big list. A list that would make this post the longer piece on this blog. A list that includes all the web sites that offer shortcuts to make quick money with trading.
But I expect none of them to work. At least not to work as they are sold. Surely there are very few gifted, successful traders that make a fortune quickly and without efforts, but those are black swans. And those success stories are not replicable. [click to continue…]
In this latest edition of the Classical Chart Patterns Report I reviewing ongoing trends and special situations in Canadian Dollar, Euro, the Australian Dollar, EUR-JPY, Coffee, Soybeans, Brazil equity Index ETF, Japanese Small Cap Index. Also potential breakout in Eurodollar, Gold, AUD-NZD are discussed. [click to continue…]
If you trade chart patterns you should consistently analyze and keep track of those patterns that in the last weeks and months generated the best outcome out of each of trading setups. Make this analysis part of your daily or weekly routine.
By trading setups I mean the rules that you should have written down in your Trading Plan, not vague concepts or, even worst, opinions. [click to continue…]
After few quite frustrating weeks with lack of follow throught and lot of volatility, the past week the markets we are following in this report were trending better. The Pound and the NZ Dollar negated my chart interpretation, while all the other markets play out as expected. No new trades were made in the last 5 trading days.
This weekend I have some new setups that may offer nice trading opportunities for swing and position traders. I’m referring to December 2016 Eurodollar, EUR/JPY, China and gold miners. [click to continue…]
In the last two weeks markets, especially equity and FX ones, have been mostly driven by news. This is quite typical for this period of the year and can make trading quite frustrating.
During the last week I closed all but three positions in my portfolio due the lack of trends in the markets in which I was involved. Holding several leveraged positions that overall cannot get traction is a worthless risk to be taken. [click to continue…]
Usually I do not talk about stocks here, but since I have some friends/readers that are interested to see some application of the concepts discussed here also on stocks I’ll randomly show some setups and stocks scans.
Today Cambrex Corp (CBM) offers an example of a strong stock that is breaking to new highs in a weak market. The breakout happened after 6 months of consolidation that took the shape of an inverse head and shoulder continuation pattern. [click to continue…]
In this week’s Classical Chart Patterns Report I’m reviewing the following situations and markets:
- Patterns in Play: GBP-USD, USD-CAD, USD-CHF, NZD-USD, EUR-USD, AUD-USD, GBP-AUD, Coffee, Soybeans, Brazil & Japan ETF.
- Developing Patterns: GBP-JPY, GBP-CAD, Gold miners.
- Setup completed over the last week: Sugar.
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