Tuesday, October 2, 2007

Applying the tools

I don't apply the tools just to get in on a trade. I apply the tools for every aspect of trading: entry zone, entry, managing a trade, anticipating a target or a correction, taking profits etc....
Here is an example of the latest Euro run. This is where the tools tell me it is an area to possibly expect a potential correction, tighten up stops, take some profits...
I don't want to call a top or bottom ever, but I do want to know where a run may pause and correct before resuming. The tools that help me do so are Median lines, Fibbonacci retacements, price projections (as shown in chart 1). Chart 2 also shows a larger view with a potential Elliot Wave scenario with this being a potential Wave 5 (and I am not saying the end of a Wave 5).
Also take a look at the third chart GLD (Gold Trust Fund). It points to a similar area where price may correct. As we know Gold and the US Dollar have a very strong inverse correlation (one moves up the other moves down)



Monday, October 1, 2007

What's wrong with this picture?

One of the biggest banks in the world warns about an earnings drop of 60% and billions of dollars in subprime losses and the Dow rallies more than 200 points to record highs. Hmmmm...? Am I missing something here? Do I not get the whole story or do people not want to get it? Has anyone heard that the dollar is worth less than the loonie now? Are the blindfolds still on? I guess I am not getting it. Can someone explain this to me?