Stops are definitely important given the volatile conditions of today’s domestic and international economy. They are an enormously important part of a trader’s arsenal of trading tools and some traders confirm that stops are the most important part of their trading armor.
Learn more about using stops here.
The Gold Report: On June 11, on GoldStockTrades.com you wrote, "Some of my charts are showing a potential reversal in the precious metals." What are those charts telling you in late July?
Jeb Handwerger: In early June it appeared that the junior miners tracked by the Market Vectors Junior Gold Miners ETF (GDXJ), which I use as a proxy for the junior gold miners was making an inverse head-and-shoulders pattern between $34 and $35. Then the junior miners had a very strong rally in June, with an intra-day high of $46. Now we're forming what I believe is a potential crossing of the 50-day and the 200-day moving averages a golden cross. This could signal the final turn from a secular bear market to the beginning of an uptrend.
TGR: Is gold close to a golden cross? Continue reading "Position Yourself for Fall Fireworks"
When trading in a market that is as fast paced as Forex is, preventing substantial losses is just as important as coming out ahead. You need to have systems in place as a part of each plan that not only will maximize your gains, but will also minimize your losses if your trade does not go as you thought it would.
There are simple strategies you should employ in each trade to make that happen for you. Fixing buy and sell setups will help you to control your risk while increasing your profitability. They work by fixing when you will enter a trade, and when you will exit. Regardless of whether you are gaining or losing.
Buy and sell setups take the human element out of the trade. Before you invest your money, you choose the terms that expose you to the least amount risk as possible. Once the trade begins, for better or worse you sit back and let your money ride. Trading in this way helps you to control those decisions you would make based on your emotions, such as pulling out too soon when you have shown some gain, or staying in the trade too long in order to try and reverse a bad trade. Continue reading "Setting Up Your Forex Trade For Success With Stops and Limits"
Stock market investors who glance at their screens see the dollar value of the Dow Industrials.
Another way -- the way Elliott Wave International (EWI) prefers -- is real value, in terms of the things you can actually buy with your Dow shares, such as real money (gold) or a basket of commodities.
Clearly, one could ask: "Why is the Dow priced in real value important? I buy things with dollars."
Let's look briefly at the nominal (dollar valued) Dow vs. the real Dow. Then we can address why the Dow measured in real value matters.
On July 16, the nominal Dow reached an all-time closing high of 17,138.20.
"The value of the real Dow is not even close. Indeed, you may be in for a shock. The Dow priced in real money-gold-topped in 1999 and has collapsed 84% since then ... . Had the U.S. maintained honest money, the Dow would be priced at 266 today ... ."
The Elliott Wave Theorist, June 2014
Robert Prechter, founder and president of EWI, calls the collapse in the real value the "Silent Crash." Continue reading ""Silent Crash": Why the Real Value of the Dow Jones Industrials Matters"
We've asked Michael Seery of SEERYFUTURES.COM to give our INO readers a weekly recap of the Futures market. He has been Senior Analyst for close to 15 years and has extensive knowledge of all of the commodity and option markets.
Michael frequently appears on multiple business networks including Bloomberg news, Fox Business, CNBC Worldwide, CNN Business, and Bloomberg TV. He is also a guest on First Business, which is a national and internationally syndicated business show.
Crude oil futures in the September contract finished basically unchanged for the trading week to close around 97.60 and I have been recommending a short position when prices broke 98.70 last week while placing your stop loss now above the 10 day high which is 102.10 risking around $4.00 or $2,000 per contract as the chart structure will improve dramatically in the next 2 days so if you’re lucky enough to get a rally in tomorrow’s trade take advantage will placing the proper stop loss minimizing your risk to 2% of your account balance. Many of the commodity markets were lower again today due to the fact that the U.S dollar hit a new 6 month high and I still do believe that the federal government wants lower oil prices because Russia’s economy is based on high oil prices and there’s no better way to hurt the Russians than push crude oil back down to $80 a barrel so continue to sell this market as I remain bearish. Crude oil futures are trading below their 20 and 100 day moving average with the next major support around 96.50 if that level is broken I think you will retest the March lows of around 94.25 so continue to play this to the downside.
TREND: LOWER
CHART STRUCTURE: Improving Continue reading "Weekly Futures Recap With Mike Seery"
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