One thing about Doug Kass, is that he is willing to stick his neck out. But it sure seems he will get it cut off this time. I don’t know why he says that the advance is narrowing; instead, I see that it is rotating and broadening which is very bullish as sectors left behind are now beginning to catch up. If the break above 1000 on the SPY holds, as it did today, for another couple days (William O’Neil of IBD says 4 days are needed to confirm a breakout), it will probably head up to 1100 on its way to 1300. I don’t know if it can get there by year end, but there are some that do.
Leadership is narrowing, speculative stocks are erupting, and shorts are pulling their hair out.~I still say the advance has a relatively small and finite life now….
A burgeoning fiscal deficit and the financial instability of our state and local municipalities are among two of the most significant of a number of nontraditional headwinds that consumers, corporations and investors face in the future. Though the bulls generally agree with these intermediate-term challenges (especially the spiraling deficit and a nervous U.S. dollar stalemate), they generally dismiss them both over the short term, favoring the belief that the current upside surprises in earnings will dominate the market landscape in influence.
I would argue that the aforementioned challenges are ever more predictable in consequence and will serve as a governor to further gains in market valuations. Not only are they inhibiting but they are also potentially oppressive influences that have been too readily put on the back burner in the face of a relentless market advance over the last five months.
An avalanche of spending by the public sector is now following an avalanche of spending by the private sector. In essence, we are (perhaps necessarily) fighting the slowdown with the same sort of incendiary kerosene that put us into the mess.
Profligate spending comes at a cost, a cost that we will experience sooner than later. – Doug Kass, August 3, 2009
There was a big move in financials and RE the past two days. Industrials are also perking up (I made a quick profit on Fluor, but would now like to get a little more before earnings on Monday). GE is both an industrial and a financial, so it has done very nicely the past 10 days, going from $12 to $14, which is almost a 20% move. I am adding to GE. Its 200 day EMA is 14.93 and if it breaks that barrier, I see it going to $20. I am using call options to add to my position (GEWLA). I also sold the Sept $17 puts today for $3.10.
Another stock to look at is the ETF for industrials: XLI. I sold puts on that today, but would also look at buying the stock or buying calls. Industrials are early cyclicals and are just now starting to move. Rather than buy BAC, I am adding to UYG by purchasing March 2010 calls at the $6 strike. UYG has a lot of BAC in it, plus the other big financial names like JPM, WFC and USB. They are at $0.70 a contract right now. If UYG goes to $10 by Jan. 1 (it was $20 last Sept), the return will be $3 on a $0.70 investment per share, which is a 400% return. But if it goes to $10, I will probably hold it till expiration because I think it might go back up to $20 while BAC is moving from $15 to $30.
Kass is stuck on his huge multi-year trading range theme (800 – 1000 on the SP500), just like Bill Gross. But if the Feds continue to support the economy and the Asian market continues its great growth and puts demand on our exports, there is no reason that the RE sector can’t repair itself and unemployment can’t move back down to around 6-7% over the next 12-18 months. That will ruin the bear arguments and will support a 1300 market as earnings continue to come back.
Keep an eye on the Feds. They are most important in the next 12 months in the market.
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If you have been engrossed in making some major money with the Forex, then in my opinion this is the How to Trade the Forex Market… utilize ground-breaking, scientifically advanced technology that gets the work completed for you during the hours that the market is open for business.
Nearly all of us don’t have the comfort of lots of time to burn up reading books, and studying volumes of detailed analysis of how to trade the Forex market, so supercomputer driven Forex Artificial Intelligence (Forex AI) has come to rescue us!
A few experts in the field of currency trading may perhaps be too pure at heart to jump all over this type of technology and welcome it. Nevertheless, those of us who want, need and are determined to make the big bucks without blowing a mental gasket or burning up all of our investment capital welcome a simplified way of being triumphant with the Forex.
Were you awhere that certain Forex artificial intelligence (AI) programs can race through weeks and months without losing a single trade? So, why in the world would you not want to take up something like that?
Let’s be clear, I am not saying that all such technology can do this, but at least in my personal experience, I have seen it and experienced as well as a couple of my friends. I am talking about results that are truly confounding and mind-boggling!
The real story for us, this is how to trade the Forex market and make boat loads of cash and the Forex AI program allows for superb money management strategies to keep us in the position of minimum investment risk, yet at all times in the market to make money!
An added nice perk that I have learned is that on a month to month basis this kind of Forex artificial intelligence (Forex AI) based program can produce upwards and beyond 25% profit per month! Noticeably, this is considered a very good thing in the circles that I converse in.
Openly, even someone who is opposed to the exploitation of such technology would have to admit that 25% profit per month and streaks of months without a losing trade that ain’t too shabby! Hopefully, a good number of the readers of this article be in agreement with that.
With all of that said, when you are making money from the “get go” it is so much easier to learn, understand concepts and new skills, instead of feeling like you are under a mound of pressure to perform!
Finally , I summarize it like this: if you are out to make money in the Forex and technology such as Forex artificial intelligence can assist you do so with tremendous reliability and minimum risk, you owe it to you and your family to jump all over such an opportunity and start making money with it as quickly as possible.
One more question for you. How to trade the Forex market? Well, I think you understand the answer to that after reading this article. Get busy and get after it!
Author: Jeff Gadley is a regular internet author with numerous of articles written solely for the purpose of helping people find the fastest methods possible to make money with the highly lucrative Forex Currency Market.
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I recall very visibly when I first started my inquiries for Free Forex Training on the internet and I got so thrilled when I went concluded the online learning modules because I was actually learning information that was logically going to earn me some capital on the internet without having to call people and push some meaningless products!
Numerous companies that made available free Forex training seemed pretty respectable in terms what they were attempting to do, so thousands of folks benefited from so many companies making offers for this sort of online Forex training.
Now when I observe such companies, I poke a little deeper to see if they put forward advanced technology education to assist users of their method or software make money.
On the whole, I was looking for rock solid currency trading signals. A solution that provided a launch-pad to making money! I sought after something that would help me make money besides just relying on my understanding of the currency trade data that I was viewing.
In the journey of attempting to find the best free Forex training, I came across information that left my brain on fire with excitement that dealt with Forex artificial intelligence making automatic decisions and providing Currency Trading Signals.
My goodness, could this be true? You bet it is! I was floored at what I was really reading and finding. I knew that such technology existed years ago, but had know idea how refined and reliably accurate it had grown to be.
Now are you ready for this?
Here is what I discovered and I was taking one of those free Forex training courses. I found out that Forex artificial intelligence is helping people make boat-loads of hard cash with the Forex market. This easily includes people who had no prior experience and barely any know-how on what the Forex is.
Needless to say, this proves to be very moving because it means that you can really start making money from the start by getting accurate currency trading signals and earn 25% profit per month.
At this point, pay close attention! Utilizing Forex Artificial Intelligence (AI) has been verified to yield results of 100% accuracy for extended periods of time! To further make clear that previous statement, what I mean is…100% Dead-On with currency trading signals for weeks and even months! Chew on how that may possibly impact your next investment, if you were able to get accuracy levels of 100% for those kinds of periods of time.
I hope your brain is forming a final conclusion here. If you have an interest to learn the Forex and become accustomed with how to churn out money with currency trading then jump all over it and make darn sure that any kind of course that you take covers the highly developed technologies of Forex artificial intelligence.
When it is all said and done, it can be the most significant financial decision that you will ever make in your entire existence.
Author: Jeff Gadley is a regular internet author with numerous of articles written solely for the purpose of helping people find the fastest methods possible to make money with the highly lucrative Forex Currency Market. Currently he works with Forex Artificial Intelligence yielding 100% accuracy for extended periods of time with 25% profit per month.
Click – Free Forex Training
or Visit – http://WinningForexTradeSignals.com
Can you seriously pass this opportunity up?
I will give you a great technical trading system that works in ALL markets, not just ETFs, but more importantly I will teach you how to stay disciplined to follow the signals, how to be fearful when others are greedy and how to be greedy when others are fearful, how to milk the trend for almost all it is worth, and how to have minimal trades and risk when the market is not trending.
For example: There will be lots of days where we won’t be in the market. That is ok, if it’s not a system trade it’s not a trade. The day you start trading outside of the system because you are bored or “need the action” is the day you start losing. Not trading is a trading decision.
On the other hand there is under trading, not taking the trade when the signal tells you to. If that is the case why even learn my system? If you are that scared do a demo account a few more months.
You can paper trade for as long as you want. In fact that is what I recommend to all my new students. Don’t risk a dime until you see that my system works. Once you see that, trading discipline becomes easy.
There is a big difference between working and playing. In work you sacrifice your time. Don’t come to trading with “work attitude”. Come with the right attitude. The big pay days are easy and it will feel like play.
At some point you will get a string of winners, do not become overconfident.
At some point you will get a string of losers, do not get depressed.
At some point you will get no new trades, do not get bored.
Overconfidence, boredom and depression are all killers of good traders. If you know upfront this will happen at some point in time you will be better prepared for when it does happen.
These tips are just the tip of the iceberg compared to what is in my course, weekly webinars and member’s area. I am a trading veteran. If you will learn from me I will rub off on you.
Some testimonials (also found on the ETF Trend Trading Home Page).
• “I think the fact that I will be able to make trades in the evening for the next day and go on with my every day life with my wife and kids and still make money instead of sitting in front of a computer is worth its weight in gold.”
Richard L. – Commercial Airline Pilot
• “The system works hands down. This is the best system out there because it has definite entry points, exit points and profit levels. It greatly helps remove the emotion from trading.”
Mark K. – Programmer
• “As an Financial advisor, I would say that this system is far superior to “buy-and-hold,” and “asset allocation,” because it takes all of the guesswork out of the process.”
Michael V. – Financial Advisor
• “You can finally learn to trade with rationality, confidence and safety and tell your over-priced stock broker that you can trade better than him and say good-bye to him.”
John C. – Family Doctor
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Jason Goode
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Most traders have had the painful experience of setting their stops only to have the price retrace to their stop before continuing in the trend. Although some traders swear that other traders are “running the stops,” actually what happened is the trader placed the stop too tight.
You must remember that stops are there for one simple reason; to preserve your capital in case the market goes against you. If you are placing your stops too close, chances are you are consistently being stopped out and not consistently taking money out of the market. For example, a tight stop would have taken you out multiple times within the three separate trends. However, with the ETF Trend Trading stops, Channel Exits and Swing Trailing Stop Strategies; most of the time you actually stay in the trend, enabling you to take your profits near the end of the trend.
By allowing your stops to breathe with the market, you stay in your trade longer, thereby profiting from the bigger moves. Because we combine technical stops with a percentage risk stop it does not matter if some of the stops are larger to give it more breathing room because it’s still the same percentage risk.
I also teach a threshold level where the trade is not to be taken because the stop would be too far away. The great thing is that when the stop is tight we get to load up on the number of shares with still only risking the same amount.
For example if I was to sell the SPY at $100.00 and the technical stop in this case was tight at only $101.00 I would only be risking $1 per share. If I had a $20,000 account and wanted to risk only 1% that would be a total risk of $200. So I divided 200 by $1 RPS (risk per share) = 200 shares. So if price drops to a target of $95.00 I would make $5 per share times 200 = $1,000. That is a 5% rate of return while risking only 1%.
On the other end if my technical stop had to be $110.00 I would be risking $10 per share (past the threshold of too high) and still be risking 1%. I would only be able to sell 20 shares ($200 divided by $10). So if I exited at the same target of $95.00 I would still make $5 per share, but only times it by 20 shares = $100, a 0.5% rate of return for the same risk of 1%. This is a bad risk reward ratio and why this trade would not be taken in the first place.
That is why if the RPS (risk per share) is too high we don’t take the trade. I share that threshold with my members (clue; it has to do with the risk vs. reward ratio). That is why many times on my free daily videos I say “we were able to load up on the shares in this trade because the RPS was so low!” Those are my favorite trades.
Yes we still get stopped out from time to time, but a lot fewer times than traders who are scared and place their stops way too tight.
The other end of the spectrum which many average investors are doing right now with their mutual funds is to trade with no stops at all. This is the dumbest investment strategy around. Only financial advisors who only care about their management fee recommend this strategy. I call it the buy, hold and pray method.
The sad thing is that many average investors have fallen for it. Yes the market might turn around, but you’ve got to admit, it also might not! If your mutual funds are down 20-30% how much more can you take? The financial advisors are hiding the fact from you that you can learn to trade for yourself and do it better than them with proper training.
There is an easy way to become a superior trader or investor “working” only 5-10 minutes per night. I am a former fund manager and used to trade 50 million plus at a time. After leaving the money management business and trading only for myself, I got disgusted with the pathetic trading strategies are being pushed on the internet.
Most of them have no idea how to place proper technical stops let alone how to combine it with a low risk percentage stop. Most of them have purely discretionary systems leaving you open to a gambit of contradictory trading decisions. To succeed long term you need to use technical stops combined with a max percentage loss stop.
Most of them DO NOT trade in the live market like I do every night setting up my EXACT trade entries and sharing them with my advanced members the day before the market opens. Lastly most of them require a whole lot more than 5-10 minutes per night.
Cheaper does not cost less. Even if you never buy my course, please don’t waste your time and money on some cheap $99 or $499 course. You always get what you pay for. If it sounds too good to be true, guess what, it’s not true.
Yes you will have losing trades in my system.
Yes we don’t make as much in flat or sideways markets.
Yes you can’t have dangerous 100 to 1 leverage trading ETFs.
Yes as your coach I will hammer you if you go outside the risk controls my system has in place.
Yes I have two weekly live webinars where I will hold your hand until you learn the system.
Yes we make a killing when the market is trending. Yes you can day trade my system if you want.
Yes my system works on any time frame.
Yes my system works on ANYTHING that produces a chart.
Yes you will be learning from a real trader instead of an infomercial marketing genius or an incompetent salesman financial advisor. Why am I so harsh? It’s because we are talking about your retirement and life.
This is not to be taken lightly with a pat on the back and an “it will be ok” attitude.
Yes I have a no questions asked 90 day money back guarantee according to the terms on my homepage.
Yes my system can be learned by people with no trading experience.
Yes you can trade using the Quote Tracker free charts and have no other out of pocket expenses.
Learn more about ETF Trend Trading or ETF Trend Trading Course
Jason Goode
Access crucial tips about forex managed account – this is your personal knowledge pack.
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