Big Advantages of Trading with the Wave Principle

What advantages does the Wave Principle offer to traders?

Here's one of the big advantages of using the Wave Principle when trading: you can increase your understanding of how current price action relates to the market's larger trend.

Other tools fall short in this regard. Several trend-following indicators such as oscillators and sentiment measures have their strong points, yet they generally fail to reveal the maturity of a trend. Moreover, these technical approaches to trading are not as useful in establishing price targets as the Wave Principle. Continue reading "Big Advantages of Trading with the Wave Principle"

Gold Chart of the Week

Each week Longleaftrading.com will be providing us a chart of the week as analyzed by a member of their team. We hope that you enjoy and learn from this new feature.

Weekly Gold Report (September 10 through September 14)

As we begin the last of a three week stretch of policy statements from the United States and Europe, the Precious Metals maintain their upward bias.

December Gold futures rallied to another new high overnight, as traders continue to price in last week’s news from Europe and anticipated bullish news from the US FED this Thursday. Continue reading "Gold Chart of the Week"

When an Over-Ripe Market is Ready to Spoil

Anyone who enjoys eating fruit knows there's a fine line between ripe and over-ripe.

If it sits in the fruit bowl too long, over-ripe turns rotten.

As experienced investors know, the stock market goes through similar phases. An overbought, or over-ripe, market can spoil quickly.

Take a look at this chart for example (wave labels removed), and ask yourself, is the stock market on the verge of spoiling? Continue reading "When an Over-Ripe Market is Ready to Spoil"

Invest in What China Needs to Buy: Don Coxe

The US is no longer the safest place in the world to invest, says Don Coxe, a strategic advisor to the BMO Financial Group. While US-based companies are forced to wade through red tape and legal challenges, relatively lax regulation in emerging economies created stiff competition. In this exclusive interview with The Energy Report, Coxe explains how investors should position themselves as China and India rise to superpower status.

The Energy Report: You are famous for taking the long view of the political economy, Don. What does the machinery of history tell us about the likely future of the Western world as measured against the newly industrializing economies, including China, India, and Brazil?

Don Coxe: For the first 17 centuries of the so-called Christian Era, China and India together generated about 40-50% of global gross domestic product (GDP), due to the sheer size of their populations. But when they did not participate in the Industrial Revolution, the relatively small number of people living in Europe and North America were able to take over 70% of global GDP. The East stagnated. Continue reading "Invest in What China Needs to Buy: Don Coxe"

Don Coxe Recommends Investors Read Lenin to Understand the Markets

China and India have always been crazy for gold, and the yellow metal remains the choice store of value in those two countries, says Don Coxe, a strategic advisor to the BMO Financial Group. In an exclusive interview with The Gold Report, Coxe explains how demographic shifts are affecting the price of gold and delves into the logic of investing in gold as a long-term strategy. Coxe also draws an important lesson in economics from his reading of Lenin. Continue reading "Don Coxe Recommends Investors Read Lenin to Understand the Markets"