Buy me 10,000- or whatever. If it goes up 1 point, buy more. If it goes up another point, call me. If it goes down 2 points, sell it. This sane, simple advice- unload losers, ride winners- became a source of enduring mystery for me: Why didn’t more investors embrace it? And why did so many…do just the opposite
Alan “Ace” Greenberg on The Rise & Fall Of Bear Stearns
The benchmark S&P 500 index is trading near a very important inflection point: it’s 2010 low and the neckline of its broader 2010 H&S Top. If it breaks, then odds favor lower prices will likely follow.
Sovereign debt woes continue to be the bane of this rally. At the end of April the S&P Rating Agency downgraded Greece’s debt to “junk” status, which accelerated the steep sell-off in the euro and sent it down to its 2008 lows! This sparked a world-wide panic sell-off which sent stocks plunging. In addition, Spain and Portugal’s debt was also downgraded which put pressure on a host of capital markets. Italy and Iceland are the two nations which analysts believe are also dealing with ominous debt levels. All of this helped the US dollar enjoy one of its strongest gains against the euro in over a year. Since November, the greenback has rallied smartly and jumped above its 50-day moving average (DMA) and 200 DMA lines. As expected, the stronger dollar sent US stocks and a slew of commodities (i.e. dollar denominated assets) lower as investors continue to debate our economic future.
Day Count Reset as Correction Intensifies
Richard Donchian’s Trading Rules
The Blame Game
NEW YORK (Reuters) – Gold futures ended a hair lower on Thursday as the market took a breather after rising for the past five consecutive sessions, and the metal must break above key resistance at $1,150 to rise further, analysts said.
Bullion prices have climbed nearly 3 percent so far this week, largely defying a stronger dollar, as persistent fears over the fiscal health of smaller euro zone economies prompted investors to buy the metal as a haven from financial risk.
The price of gold has been largely moving in a trading range between $1,050 and $1,150 since it rallied to a record high above $1,220 in early December, failing to show a clear direction.
The fact that gold had a technical break-out on Wednesday while the dollar was also rallying “speaks volume” for the metal’s strong underlying demand, said Adam Sarhan, chief executive officer at New York-based Sarhan Capital.
Sarhan said that it will be key for gold to close above $1,150 an ounce for the week, as the metal has risen toward the mark several times but had failed each time.
“If it does rise above $1,150, that means we can confirm the break-out. If it doesn’t, we expect some sideways actions to continue.”
The fact that there have only been a few distribution days (and not very damaging ones, technically) since the follow-though-day (FTD) bodes well for the current rally. It is also a welcome sign to see the market continue to improve as investors digest the latest round of stronger than expected economic and earnings data. Remember that now that a new rally has been confirmed, the window is open to proactively be buying high quality breakouts meeting the investment system guidelines. Trade accordingly. Never argue with the tape, and always keep your losses small
Here’s list of 5 Fears Investors Have Right Now: US Economic Growth: The lack of job growth and ongoing stagnation in housing remains a top concern. Interest Rates: How will the massive government deficits effect interest rates? The fiscal and economic health of Greece, Spain, Portugal and Ireland (i.e. PIGS). New Bubbles: Emerging Markets or Chinese real-estate? The high price…