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Presented by Nick Santiago January 31, 2013 10:55AM
Almost everyone has heard of or perhaps even used feng shui when decorating their homes. This is a way to allow positive energy flow effortlessly throughout the rooms of the home or apartment. Many new buildings in New York City are now being designed using feng shui architecture. Feng Shui is an ancient art and science developed over 3,000 years ago in China. It is used to balance the energies of any given space to assure good fortune for the people using it. Well, traders and investors should invite feng shui techniques when playing the stock market.
You see, a technical trader does not care if the Dow Jones Industrial Average (DJIA) goes up to 15,000 or 20,000. The technical trader does not care if the DJIA goes down to 5,000 or 500. All a technical trader should care about is being on the correct side of the trade. The charts will usually tell us when the turning points are going to occur in the stock market. It is then the trader's job to simply go with that energy whether it is to the upside or to the downside. Believe me, after every bull market there will be a bear market. On the flip side, after every bear market there will be another bull market.
Another rule that traders should follow from feng shui is to not take stocks personally. Often, many traders will lose money on a trade and then try to get even or get revenge on the stock. Remember, the stock does not care if we make money trading it or not. I once saw a trader continue to try and get revenge on a stock that he lost money on. In fact, the stock was Skyworks Solutions Inc (NASDAQ:SWKS), but it can really be any stock. To my amazement, he day traded that stock all week long losing money everyday. He kicked his desk, tossed his computer mouse and slammed his keyboard on his desk in frustration, taking lose after lose. Finally, I said to him, you are a good trader, why don’t you just leave that stock alone and trade something else. He replied, that he must get even with the stock and he was not going to allow that stock to beat him. Soon, he was no longer trading in the office with us. I suspect that he lost a lot of money. We should all remember what Sun Tzu said, “What the ancients called a clever fighter is one who not only wins, but excels in winning with ease.”
Many popular stocks in the media will receive the bulk of attention by traders, but it is the consistently active stocks that traders should focus on. Leading stocks such as Exxon Mobil Corp (NYSE:FCX), Toll Brothers Inc (NYSE:TOL), and J.P. Morgan Chase & Co (NYSE:JPM) present countless opportunities everyday without much stress. These types of stocks usually have easy fluent moves in the market both up and down. Simply put, buy the support and sell the resistance levels.
Feng Shui trading may become popular one day. As traders, we simply must go with the flow and not force our opinions on the market. The charts will tell us everything that you need to know. Forget the news and the noise as that is simply the enemy for traders.
Nick Santiago
www.InTheMoneyStocks.com
You see, a technical trader does not care if the Dow Jones Industrial Average (DJIA) goes up to 15,000 or 20,000. The technical trader does not care if the DJIA goes down to 5,000 or 500. All a technical trader should care about is being on the correct side of the trade. The charts will usually tell us when the turning points are going to occur in the stock market. It is then the trader's job to simply go with that energy whether it is to the upside or to the downside. Believe me, after every bull market there will be a bear market. On the flip side, after every bear market there will be another bull market.
Another rule that traders should follow from feng shui is to not take stocks personally. Often, many traders will lose money on a trade and then try to get even or get revenge on the stock. Remember, the stock does not care if we make money trading it or not. I once saw a trader continue to try and get revenge on a stock that he lost money on. In fact, the stock was Skyworks Solutions Inc (NASDAQ:SWKS), but it can really be any stock. To my amazement, he day traded that stock all week long losing money everyday. He kicked his desk, tossed his computer mouse and slammed his keyboard on his desk in frustration, taking lose after lose. Finally, I said to him, you are a good trader, why don’t you just leave that stock alone and trade something else. He replied, that he must get even with the stock and he was not going to allow that stock to beat him. Soon, he was no longer trading in the office with us. I suspect that he lost a lot of money. We should all remember what Sun Tzu said, “What the ancients called a clever fighter is one who not only wins, but excels in winning with ease.”
Many popular stocks in the media will receive the bulk of attention by traders, but it is the consistently active stocks that traders should focus on. Leading stocks such as Exxon Mobil Corp (NYSE:FCX), Toll Brothers Inc (NYSE:TOL), and J.P. Morgan Chase & Co (NYSE:JPM) present countless opportunities everyday without much stress. These types of stocks usually have easy fluent moves in the market both up and down. Simply put, buy the support and sell the resistance levels.
Feng Shui trading may become popular one day. As traders, we simply must go with the flow and not force our opinions on the market. The charts will tell us everything that you need to know. Forget the news and the noise as that is simply the enemy for traders.
Nick Santiago
www.InTheMoneyStocks.com
Presented by Gareth Soloway January 31, 2013 12:05PM
The Dollar continues to fall, day after day. There is a head and shoulder pattern on the daily chart that is on the verge of triggering. A head and shoulder pattern is a bearish pattern that usually leads to further downside. The trigger (when the pattern is in play) occurs when the neck-line breaks. Please note the chart below. The tracking ETF used to view this is the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP). It is trading at $21.61, -0.03 (-0.14%).
While this pattern has been recognized by countless market technicians, once it triggers it may fail. According to the proprietary PPT Strategies, there is a 60% chance of pattern failure in the near term. Should the pattern fail, a sharp spike up would be expected on the Dollar which would result in a down move in the markets.
Learn the proprietary PPT Strategies that boast an 80-90% success rate. Take the seven day free trial to the Research Center and learn these techniques while getting swing trade alerts, market analysis and amazing profits. Join today and profit for life.
Related: CurrencyShares Japanese Yen Trust (NYSEARCA:FXY) and CurrencyShares Euro Trust (NYSEARCA:FXE).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
While this pattern has been recognized by countless market technicians, once it triggers it may fail. According to the proprietary PPT Strategies, there is a 60% chance of pattern failure in the near term. Should the pattern fail, a sharp spike up would be expected on the Dollar which would result in a down move in the markets.
Learn the proprietary PPT Strategies that boast an 80-90% success rate. Take the seven day free trial to the Research Center and learn these techniques while getting swing trade alerts, market analysis and amazing profits. Join today and profit for life.
Related: CurrencyShares Japanese Yen Trust (NYSEARCA:FXY) and CurrencyShares Euro Trust (NYSEARCA:FXE).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
Stocks are trading flat to slightly lower on extremely light volume today. The SPDR S&P 500 ETF Trust (NYSEARCA:SPY) is trading at $149.92, -0.16 (-0.11%). At this stage of the day, markets are in a floating pattern until tomorrow when the Non Farm Payrolls and Unemployment Report will be released. This will happen at 8:30AM ET. The markets are looking for further guidance after yesterday's GDP Report came in weaker than expected. Most analysts chalked the weak GDP number, up to the Fiscal Cliff worry and other things. Tomorrow will enlighten the markets even more.
Facebook Inc (NASDAQ:FB) opened lower today at $29.15, down over $2.00 from the close yesterday. Fourth quarter earnings were released and initially disappointed investors. However, the market continues to see bidders rushing for any name brand stock. Facebook has climbed all the way back to the flat line on the day. It is trading at $31.16, -0.08 (-0.26%).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
As everyone can see, the stock markets around the world have exploded higher. It really does not matter if you look at the London FTSE 100, German DAX, Shanghai Index, Nikkei 225 Index, Dow Jones Industrial Average, or even the Athens Stock Exchange (ASE), they are all surging higher. What is the one factor that all of these economies have in common? It is simply money printing. All of the central banks that control the currencies of these nations are printing money like never before.
The Federal Reserve made this popular many years ago, however, they took money printing to new all-time levels since the credit crisis began in 2007. Since that time, the Bank of London, People's Bank of China, Bank of Japan, Swiss National Bank, European Central Bank, and others have continued to inflate their equity markets by implementing easy money policies (essentially money printing). Can central bankers simply print money forever? The answer to this question is no, but at this time it seems that they will continue to print money into the foreseeable future.
The Federal Reserve made this popular many years ago, however, they took money printing to new all-time levels since the credit crisis began in 2007. Since that time, the Bank of London, People's Bank of China, Bank of Japan, Swiss National Bank, European Central Bank, and others have continued to inflate their equity markets by implementing easy money policies (essentially money printing). Can central bankers simply print money forever? The answer to this question is no, but at this time it seems that they will continue to print money into the foreseeable future.
Obviously, we all know that there is a price to pay when a currency is artificially deflated. The usual and most common effect will be inflation. Inflation will help to lift the value of asset prices, so many investors may think that is good. The downside is that it will make the price of goods that people need to survive more expensive. Food, oil, gasoline, heating oil, jet fuel, and other energy products will increase. Commodities such as copper, iron ore, and building materials will also inflate in price making products more expensive for everyone.
The other negative that will occur when there is this much monetary easing taking place around the world is another global stock bubble. Generally, the bigger the bubble is when it is being created the bigger the decline will be when the bubble pops. For example, just look at the bubble that was created in the late 1980's in Japan. In January 1990, the Nikkei 225 Index traded as high as 39,922.00. Today, the Nikkei 225 Index trades around the 11,100.00 level. It is safe to say that the Japanese markets have faced deflationary pressures for over 20 years. Now, the Japanese are trying to inflate their stock markets on a daily basis. They are doing this to try and boost their exports as goods become cheaper outside of their own country. Almost every country on the Earth that has a central bank is trying that same method right now. In the short term, it will boost the markets, but in the long term there will always be a price to pay. Unfortunately, the price could be a long twenty plus year sluggish economy.
Another negative for all of this money printing could just be a lack of faith in a nation's currency. Once that happens hyper-inflation can occur and that is when goods and products will explode higher in price. According to Wikipedia, hyperinflation occurs when a country experiences very high, accelerating, and perceptibly "unstoppable" rates of inflation. Many countries have experienced this in the past. Some notable countries that have experienced hyper-inflation are Germany, Argentina, and recently Zimbabwe. It is not fun when you need a month's worth of wages to buy a loaf of bread.
The United States is the world's reserve currency. This means if you are Japan, China, Russia, or any other country that does not use U.S. Dollars for trade you will need to convert that capital into U.S. Dollars in order to buy oil, gold, copper, wheat, or any other commodity. If other nations ever lose faith in the U.S. Dollar there could be serious problems around the world. Already, there are countries such as China and Brazil initiating trade deals with each other, so there could always be a problem brewing in the future.
Gold and precious metals have exploded higher over the past thirteen years. In 1999, gold was trading around the $250.00 level. Today, gold trades around the $1600.00 level after reaching a high of $1923.70 an ounce on September 6, 2011. What is gold telling us? Gold is telling us that many smart people are losing faith in fiat currencies such as the U.S. Dollar and all other printed money. You see, you cannot print gold, it must be taken from the earth and it is very difficult to get. Recently, Germany has asked for some of its gold deposits back from the New York Federal Reserve. Could this be a sign of things to come? Perhaps, but in the meantime the central bankers are printing a lot of money.
There is a preliminary head and shoulder pattern on the PowerShares DB US Dollar Index Bullish (NYSEARCA:UUP). This is the Dollar tracking ETF and I use it because most average investors can view this chart easily. A head and shoulder pattern is a bearish pattern that triggers when the neck-line is broken to the downside. Because the Dollar and markets are inverse, this may suggest, should it trigger, the markets have another leg higher. Please note, it has not triggered. In addition, one of the intriguing catches to head and shoulder patterns is that they can fail very easily, when they are at the lows of the chart. This head and shoulder pattern is at a low. Should a head and shoulder pattern fail, look for a strong reversal in the Dollar.
The markets and the Dollar trade inverse to each other. The Dollar leads the markets. Therefore, this pattern is extremely important to watch as it controls the future of the markets.
As a Chief Market Strategist, I pride myself on being able to nail every major and minor market move. As I study the charts I find myself not trusting this bearish Dollar pattern for multiple reasons. Even if the head and shoulder pattern triggers to the downside (which implies huge upside in the market) I would wager it will fail. Often times the most obvious patterns fail because the average investor is alerted to them. As we have learned time and time again, the average investor is screwed by the institutions.
I will continue to watch the pattern closely to see if it triggers. Even if it triggers it must be watched extremely carefully to see if it fails. Failure means a big multi week/month pop in the Dollar and downside in the markets. Please note that failure would occur if the neck-line is closed back above on the daily chart after it triggers with a close below.
Take the seven day free trial to the Research Center. Join and learn the proprietary PPT Strategies that have an 80-90% success rate. Get swing trade alerts, investment advice, stock trades and more. Become part of the elite by letting me teach you how to read any chart and make money.
Related: CurrencyShares Euro Trust (NYSEARCA:FXE), CurrencyShares Japanese Yen Trust (NYSEARCA:FXY).
Gareth Soloway
Chief Market Strategist
www.InTheMoneyStocks.com
