Many people believe that “War is good for Stocks” because the government pumps billions into the economy thus creating jobs and those new employees spend money having a multiplying effect on the economy. And when the economy booms the stock market booms right? In the following chart we can see that shortly after the U.S. entered WWII that the stock market began rising and it continued to rise throughout the remainder of the war. This is possibly why U.S. investors have come to believe that “War is Good for the Market”. But…
NASDAQ Signal Has Only Occurred 15 Times In Last 42 Years
March 27, 2019 by Leave a Comment
Fifteen times in Forty-Two years is about once every 8½ years. That makes it a relatively rare occurrence. In today’s video, Chris Ciovacco of Ciovacco Capital Management looks at the recent MACD cross. The first MACD cross which occurred in September 2018 reveals the beginning of a countertrend movement in the prevailing uptrend. But when the “black” MACD line crossed below the zero line in November we get what looks like a confirmation of the switch from a countertrend movement to a full downtrend movement.
But on March 8th 2019, we see the “black” MACD line crossing back above the zero line. Thus we see the relatively rare signal as follows, “MACD crosses below the centerline on a weekly closing basis and stays below for at least 3.5 to 4 months, and then closes back above the zero line”… this makes it look more like a new uptrend rather than a countertrend rally.
Traders Should Stay Optimistically Cautious
February 20, 2019 by Leave a Comment
So far, the research team, at The Technical Trades Ltd., has been calling this market move quite accurately. On September 17, 2018, they called for a -5~8% downside market rotation, followed by price support just before the November 2018 US elections. After that, they called for a deep “Ultimate Low” price rotation followed by a strong price rally. Even though they under-estimated the depth of the correction their trend predictions from 120 days earlier played out quite accurately. So here is what they are currently saying.
Has the FED Hit the Launch Button for the Stock Market?
February 5, 2019 by Leave a Comment
In the following article Chris tells us how the FED has ended its tightening phase which it pursued during all of 2018 and resulted in a huge market crash in the 4th quarter.
How to Build Consistent Trading Success
January 17, 2019 by Leave a Comment
You’ve heard it all before:
If you want to trade using Elliott wave analysis, to succeed you first need to understand its rules and guidelines.
You need a clearly defined trading strategy (what? when? how? etc.) and the discipline to follow it.
Additionally, your long-term success depends on adequate capitalization, money management skills and emotional self-control.
Do you meet these qualifications, yet still struggle in the markets? If so, you may find some helpful advice in this quick trading lesson from Trader’s Classroom editor, Jeffrey Kennedy:
Reversals And Counter-trend Moves Typically Take Time To Develop
January 10, 2019 by Leave a Comment
Since investor psychology tends to be similar after a sharp plunge in the stock market, subsequent bottoms and/or countertrend rallies often share similar characteristics… making determining which is which more difficult.
Watch This Indicator for Approaching Volatility
December 19, 2018 by Leave a Comment
The stock market’s volatility from late July through early October was extraordinarily low. For 50 straight days the S&P 500 had not closed more than 0.8% in either direction, the longest such streak since 1968.
Yet, on October 3, all that changed. The markets dropped hard… and the VIX suddenly spiked even harder.
1987 vs. 2018
October 26, 2018 by Leave a Comment
Typically, investors see October as a tough month for the Stock market with “The Panic of 1907 (October 1907)”, Black Tuesday, Thursday and Monday (October 1929), and Black Monday (October 1987). But according to Investopedia September is actually just as bad with Black Friday (September 1869), Black Wednesday i.e. September 16, 1992, when the pound sterling crashed forcing Britain to withdraw from the European Exchange Rate Mechanism (ERM). September 2001 and 2008 each had single day point declines in the Dow that were bigger than Black Monday October 1987. A 2014 Business insider article stated that “the Dow October average over this timeframe is a modest 0.20%. There have been 64 monthly gains and 49 monthly losses. That’s calculates as a gain about 57% of the time.” The following article by Chris Ciovacco of Ciovacco Capital Management compares market action in October 1987 to October 2018.
BITCOIN BREAKDOWN MAY PUSH PRICES BELOW $5000
October 17, 2018 by Leave a Comment
Recent market turmoil across the global stock markets has refocused investors on the concerns of global economics, trade, and geopolitical issues – away from cryptocurrencies. The biggest, Bitcoin, has been under extended pricing pressure recently and our research team believes Bitcoin will breach the $6000 level to the downside fairly quickly as extended global market downtrends continue.
The Psychology of Volatility
October 9, 2018 by Leave a Comment
Nobody likes minus signs and red screens, which create a feeling of being out of control. While hitting a sell button can make us feel like we are back in control, it often leads to overtrading and disappointing returns.
