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Good review of todays data
Copper is one of the most widely used industrial metals out there. It’s in our homes, offices, cars, electronics, appliances, etc. It’s everywhere.
Since it’s “everywhere” in our economy, it makes a good gauge as to where the economy is going…and for that matter the global economy too. If copper prices are rising, it’s because the global demand for the metal is rising due to global economic expansion.
However, if copper’s price is diving, it’s because the world is slowing down economically.
Well, right now copper is at the crossroads. It’s coiling up in a Symmetrical Triangle pattern. This is a consolidation/range-bound pattern that has a sharp breakout once one side of the triangle is penetrated.
Check it out below. Click on the chart to enlarge it.
If copper breaks to the up side…it’s a good sign for the global economy. It shows that it is likely on the mend and growing. However, if it breaks down southward out of that triangle, it shows that things are still terrible out there and that the debt crisis in Europe and high oil prices, etc. are still holding the global economy down.
But not only will this show where copper and the global economy is going..,.but it will also show where several of the commodity-currencies are going too.
It’s no coincidence that the Australian dollar is coiling up while copper is doing the same thing. Not only is the Aussie sensitive to copper prices because they mine and export the metal…but also because the Aussie dollar is very sensitive to what the global economy is doing (whether growing or shrinking). So the Aussie dollar and other commodity currencies will soon breakout too once it is seen what copper does. Check out the daily chart of the Aussie dollar below.
So you won’t have to depend upon lagging economic data to tell you how the world is doing economically. Copper will give you “the report card” on how the world is doing shortly. Be patient…wait for the breakout and then you’ll know how things are going. It won’t be long. Copper is almost to the end of its triangle. So a breakout will come soon
Yet, as the year draws to a close, many traders feel cheated out of a recovery by Mother Nature (earthquakes, tsunamis, and floods) and politicians who mishandled fiscal policy. The U.S. dollar ends the year not far from where it started and after all of the volatility, the value of the greenback against the euro is virtually unchanged.
What Does It Take To Master The Markets? Many times in my career I have encountered new traders who believe they have the ability to master the markets after reading a book on trading, or even because they have obtained some form of degree. Most often the first question I ask them is; are you a fundamental trader? Fundamental traders are those who generally read a companies balance sheet, (example-EPS, PE, EBITDA, book value, etc.) or perhaps they are a technical trader which is someone who uses charts of past prices, patterns, and stock market cycles. More often then not the trader is unsure of a specific methodology and is typically dependent on someones opinion to invest or trade a stock, usually from a book or talk show. Within minutes, I realize that the new investor or trader is grasping onto a dream encompassing an optimistic hope mode.
Trading is one of the most rewarding, yet highly demanding ventures that an individual can pursue. Often I compare the markets to the world's largest arena filled with gladiators from ancient Roman times. There is over a billion shares traded everyday globally and the participants range from huge institutions such as insurance companies, commercial companies, hedge funds, mutual funds, banks, broker dealers, down to the individual investor. These participants have different types of goals and strategies that are being applied. Many institutions and traders have a longer time frame horizon and are looking for larger gains from the market. Then on the flip side there are many institutions and individual traders that are trading in a shorter time frame and looking for smaller gains. This is all part of the vast ocean of trading and investing. Yes, the big fish does eat the small fish, and the food chain theory is alive and well in the global trading world.
As most people, I'm a sports fan and enjoy watching a good athletic event. In the past few years the very popular sport of mixed martial arts has emerged to the forefront of athletic competition. This is a dynamic and fascinating sport that is very diverse and requires countless hours of physical training, studying, dieting, mental strength, and a true dedication that few can achieve. Recently I had the privilege of meeting a mixed martial arts competitor and I asked him how he got started in this sport? The fighter informed me that he was originally a boxer, later studied the martial art of Judo, and now he concentrates on the martial art of jujitsu. I then asked him if he learned the basics in Judo and Jujitsu and combined the techniques? Again, to my surprise he is a black belt (expert) in both martial arts. This means he is a black belt in two different forms of martial arts, as well as a professional boxer. The next statement was a something that I will never forget. He said, "I still need to continue to learn everyday and master more if I'm to continue excelling in the sport. I'm forever a student of mixed martial arts." Then it really hit me. This is what it takes to be successful in anything that you do and the reason why only a few are able to reach the elite level.
So what does it take to become a successful trader? This is a recipe that I'm certain will be different for each individual. It is truly an endless journey. The more you seek, the more you will find and there is surely more than one way to achieve your goal. In my personal journey to learn and understand the markets over a decade I have read over 200 books on the markets. Many of those books I have read two, three, and some four times. I have watched countless recorded trading videos, attended over 100 live seminars, and worked personally with some of the best traders alive. I have studied every bull and bear market in history and continue to learn and discover new market patterns and cycles every day. I know and believe that I still need to learn and master more as this is an ever changing arena. I am forever a student of the market. True market mastery is not a nine to five job where you punch a time clock. The real work usually begins when the market closes at 4:00pm ET. Every evening, I usually spend three to four hours reviewing charts and looking for setups for the next trading day. Reviewing charts on multiple time frames and performing multiple mathematical formulas is the norm.
In order to be successful in anything you must have a true passion. Trading is no different then a doctor, lawyer, accountant, or any other profession. A comedian I saw said it best, "a person with a job can't wait until 5:00pm for the day to end so he can go home. A person with a career doesn't even know its 5:00 pm and when at work he thinks he is home."
Trading is a skill that takes a life time to master. However, it is the best and most rewarding profession in the world with many perks. Be your own boss, make unlimited amounts of money and learn how to read people. After all, when you trade you are not just trading stocks but people and their emotions. Learn the proper tools, keep learning, and make a fortune.
Nicholas Santiago
Chief Market Strategist
www.InTheMoneyStocks.com
Great Britain blames France for Warren Buffett, Jim Rogers and the Chinese shunning euro bonds
Read more: http://community.nasdaq.com/News/2011-12/great-britain-blames-france-for-warren-buffett-jim-rogers-and-the-chinese-shunning-euro-bonds.aspx?storyid=109625#ixzz1gzJcAZrF
Watch out for a short squeeze .........
http://www.efxnews.com/story/8184/speculators-bet-net-19-billion-against-euro-largest-position-2007
+++ S&P cuts Christmas to personal party from international holiday, negative outlook +++
The superior man...does not set his mind either for anything, or against anything; what is right he will follow. ~Confucius
However, as Fed Chairman Ben Bernanke maintains a cautious outlook for the U.S., the central bank head may keep the door open to conduct another round of quantitative easing, and increased expectations for QE3 is likely to weigh on the USD as interest rate expectations falter.
Another thread?
Wallstreet
If you really want to keep posting and shut your critics up then why don't you start a new thread as follows:
1. Preface it by saying that in the light of previous criticism you are going to show your analysis and a selection of your trades in real time.
2. Post your entry when made (as you did in the jacky thread although you've since deleted it) preferably with a chart image - here's a useful tool for capturing an image quickly www.getgreenshot.org
3. Post your exit(s) when made - again preferably with a chart image.
If you go ahead with something like this then please do not talk about points gained - other than those trades where you have posted entry and exit details - or about "subscribers", or services. Otherwise I will have no option but to kill it. You should change your signature too.
I will try and give you a clear run from the ott critics but you should note that I'm off to Madeira on Monday 'til after Christmas so I won't be able to keep an eye on it.
In any event, have a good Christmas break.
jon
If you really want to keep posting and shut your critics up then why don't you start a new thread as follows:
1. Preface it by saying that in the light of previous criticism you are going to show your analysis and a selection of your trades in real time.
2. Post your entry when made (as you did in the jacky thread although you've since deleted it) preferably with a chart image - here's a useful tool for capturing an image quickly www.getgreenshot.org
3. Post your exit(s) when made - again preferably with a chart image.
If you go ahead with something like this then please do not talk about points gained - other than those trades where you have posted entry and exit details - or about "subscribers", or services. Otherwise I will have no option but to kill it. You should change your signature too.
I will try and give you a clear run from the ott critics but you should note that I'm off to Madeira on Monday 'til after Christmas so I won't be able to keep an eye on it.
In any event, have a good Christmas break.
jon
