InvestMacro Forex News

By TraderVox.com

Tradervox (Dublin) – The Canadian dollar has weakened to its lowest last seen in January after the European central bank indicated that it is going to reduce its lending to some banks in Greece to reduce its risk. Investors have taken this to mean that Greece might lose its position in euro zone which has caused risk aversion.

Earlier, the loonie had erased some of the losses it had experienced against the dollar after economic data showed positive economic outlook for North American region lending support to sentiments that Bank of Canada might increase interest rates. However, the crisis in Europe has led to a decline in crude oil prices which is the biggest export commodity from Canada hence forcing the nation’s currency to drop.

According to Lutz Karpowitz who is a senior Currency Strategist at Commerzbank in Frankfurt said that the current trend has been caused by the market’s inability to predict what will happen next in Europe. He also added that the lack of credibility in Greek banks has caused the Canadian dollar to decrease as it is a currency driven by risk. He, however, indicated that despite the current pressure, loonie’s downward trend is limited and it might recover in the coming weeks.

Technical data has shown that the Canadian dollar implied volatility for one month against the US dollar has increased to 9.35 percent which is the highest since January. It had earlier in April fallen to as low as 6.59 percent, its lowest level since June 2007. The 5-year average is at 12 percent giving some confidence to traders. Implied volatility data is used by trades to quote and set prices and it indicates the expected pace of currency swings.

The Canadian currency declined by 0.5 perccent against the US dollar to trade at C$1.0122. it had earlier touched its lowest level since January 25 of C$1.0133 per US dollar.

Disclaimer
Tradervox.com is not giving advice nor is qualified or licensed to provide financial advice. You must seek guidance from your personal advisors before acting on this information. While we try to ensure that all of the information provided on this website is kept up-to-date and accurate we accept no responsibility for any use made of the information provided. Opinions expressed at Tradervox.com are those of the individual authors and do not necessarily represent the opinion of Tradervox.com or its management. 

Article provided by TraderVox.com
Tradervox.com is a Forex News Portal that provides real-time news and analysis relating to the Currency Markets.
News and analysis are produced throughout the day by our in-house staff.
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By MoneyMorning.com.au

[Editor’s Note: Due to a technical issue, I can’t send you today’s Money Morning newsletter. I’m sorry for the inconvenience. Full service will resume tomorrow].
Cheers, Kris

We’ll be honest. This falling stock market has us licking our lips.

The S&P/ASX 200 has dropped 6.2% in two weeks.

And yesterday the index had its first 100-point fall since 3 October last year.

The ASX Emerging Companies index has done even worse. It has dropped 17.1% in seven weeks.

Good or Bad News for Small-Cap Investors?

That’s bad news if you hold small-cap shares, but great news if you want to buy beaten-down stocks on the cheap. It’s also why we suggest you only invest a small part of your portfolio in these high-risk punts.

You can make or lose a big chunk of your investment in a very short period of time.

In that case, you may wonder why you should invest in small-cap stocks at all, if the global economy is as bad as we say it is.

The answer is simple.

First, while we believe the global economy is going through a necessary bout of deleveraging that will ultimately lead to deflation. Central banks and governments will fight tooth and nail to prevent that.

They want inflation. And that likely means periods of rising asset prices…followed by periods of falling asset prices as the inflationary policies fail, and deflation takes hold again.

Second, despite market moves and the threat of recession (or depression) most firms carry on doing business. And most entrepreneurs carry on thinking of new ideas.

New ideas are what small-cap investing is all about.

It’s about entrepreneurs (and investors) seeing the chance to make a lot of money, regardless of what happens to the broader economy.

That’s why we say, if you’re after a punt, buy small-cap stocks now. You can take out a no-obligation trial to our small-cap newsletter, Australian Small-Cap Investigator now. Click here for details…

Buy Small-Cap Stocks at 2009 Bargain-Basement Prices

For some time we’ve told you to ditch your blue-chip growth stocks. Today the Aussie blue-chip index is at the same level as it was in July 2009. That’s almost three years with no growth.

And for long-term investors, we don’t see that changing.

But small-cap growth stocks are a different kettle of fish. Most of them don’t have any revenues and don’t earn a profit. These are the riskiest stocks on the market.

It means when trouble hits the economy, small-caps fall the most. But here’s the thing…if an oil stock finds oil, or a gas stock finds gas, or a technology stock develops a game-changing product, then these small-cap stocks can soar higher regardless of what happens in the market.

Bottom line, it could be that the world economy is entering the deflationary cycle that should have happened in 2009. Government stimulus programs and central bank money-printing only delayed the inevitable.

But don’t let that stop you investing in stocks, because you still need to grow your wealth. And when stocks are hit this hard and everyone is rushing to sell, this is often the best time to invest.

Just make sure you hold cash (plenty of it), reduce debt where you can, hold gold and silver for security, and stick with a few reliable dividend paying stocks for income.

What’s left over, use to snap up small-cap stocks panicking investors are selling at bargain-basement prices.

Cheers,
Kris.

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Why This is the Best Time to Buy Small-Cap Stocks Since March 2009

By MoneyMorning.com.au

[Editor’s Note: Due to a technical issue, I can’t send you today’s Money Morning newsletter. I’m sorry for the inconvenience. Full service will resume tomorrow].
Cheers, Kris

In today’s Money Morning, we’ll show a chart that could give you a sneak peek into the future.

When we showed it to our old pal, Sound Money. Sound Investments editor, Greg Canavan, he said, ‘That’s what outright deflation looks like. Savers’ purchasing power grows in terms of financial assets.’

In other words, the value of money rises as asset prices fall.

That’s deflation: The friend of prudent savers. The foe of over-leveraged borrowers…and banks.

In short, when deflation hits, make sure you’re a saver, not an over-leveraged borrower.

Deflation – A Sign of the Future

This chart is of the Athens Stock Exchange General Index. Based on yesterday’s close, the index is down 89.7% from the October 2007 peak.

It’s a clear warning sign of what can happen when investors lose faith in an economy. And when investors lose faith, they stop investing. When they stop investing, asset prices can take a big hit.

But what does this have to do with Australia and Aussie investors?

Well, perhaps investors have already stopped investing. Certainly Aussie mining giant, BHP Billiton [ASX: BHP] has had second thoughts. This from Bloomberg News:

‘BHP Billiton Ltd. (BHP), the world’s biggest mining company, will fall short of its $80 billion spending target for building mines and expanding assets over the next five years as it sees commodity prices declining.’

BHP – A Sign of Asset Price Deflation for Aussie Stocks?

Over the past year, BHP shares have fallen 25%, mainly due to investor concern about Chinese demand.

If BHP does ditch plans to spend $80 billion on new projects, it indicates investors were right to sell BHP.

So much for the resources boom that’s supposed to last another 50 years!

(By the way, although he’s too modest to say it, Slipstream Trader, Murray Dawes picked this market crash like a peach. For a flashback to see and hear why Murray saw this crash coming, check out the free weekly video update that was first broadcast last week. You can view the stock market update here…)

So if companies are cutting back on investments in their business, why should individual investors bother investing? Why wouldn’t they just keep most of their money in the bank?

That’s the problem. And so the deflationary cycle begins.

As we’ve said before, deflation isn’t a bad thing. It’s good for savers, and it’s good for wage earners. It’s just that in an over-leveraged economy that has gotten used to debt spurring growth, deflation can cause a whole bunch of problems…especially for banks.

But it’s not the Aussie banking sector that draws foreign investors. Australia is a very lopsided economy. Foreign investors come to Australia to invest in one thing…Aussie resources firms.

But they’ll only do that if they believe there’s a strong growth in demand for resources. So when the world’s biggest mining company says it won’t invest a planned $80 billion, investors take note and they withhold their dollars.

And without mining sector growth, that spells a lot of trouble for the entire Aussie economy. Especially those firms (and governments) that have banked on big spending from the miners and increased tax receipts.

Cheers,
Kris.

Related Articles

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Why Europe Will Ditch Green Energy

Deflation: A Sneak Peak into the Future

By MoneyMorning.com.au

Sometime in the next few weeks we’re going to find out if Greece can afford to stay in the euro. We’re also going to find out if Spain and Italy can afford to leave the euro. Access to credit markets is the key issue. The stigma of default will lock a country out of capital markets. If you don’t have a plan to replace your currency and then devalue it, you’re doomed.

But first, the crisis in Greece didn’t come to a head over night but it can’t be far away. Rival political parties have been unable to form a government. New elections are scheduled for the second week in June. The financial has definitely become political. The people have run out of patience with unsound money and the world built on it.

All that said, the Greeks managed to make a €430 million payment to hold-out creditors last night. Nearly 97% of Greek creditors agreed to the restructuring of the country’s debt in March. That wiped off over €100 billion in Greek debt and resulted in 70% losses for some of the bondholders who accepted the deal. Not all of them did.

Yesterday, the bondholders who didn’t accept the deal got paid in full. There is still about €6 billion worth of debt owed to creditors who refused to participate in the restructuring. You can imagine that the Greek decision to pay the holdouts would anger the creditors who agreed to the deal. They look like schmucks now. Schmucks.

The Real Issue of a Greek Default

But in the current scheme of things, €430 million is chump change. The real issue is whether the Greeks are going to default on €150 billion worth of government debt. If those bonds are owned by foreign creditors – let’s call them other European banks – then the Greek crisis becomes a European crisis. We’ll come back to this issue of ‘containment’ shortly.

For the Greek people, the most alarming aspect of what’s going on is that their life savings are at serious risk of a massive, overnight, non-voluntary devaluation. There are a lot of words for the magical process of turning one thing into something else: alchemy, transmutation, and transubstantiation come to mind. But to the Greeks it’s going to look a lot like highway robbery.

You’ll go to bed one night with your life savings denominated in euros. You’ll wake up the next day with them denominated in drachma. And your euro savings will be automatically converted to drachma at an exchange rate not of your choosing. For example, your 1,000 euros will become 100 drachma…or even 10,000 drachma. The nominal amount won’t matter. What matters is that the devaluation strips you of 70% or 80% of your purchasing power.

Most people would avoid that kind of value destruction if they could. Maybe that explains why €700 million was withdrawn from Greek banks on Monday, according to remarks made by Greek President Karolos Papoulias and reported in the Wall Street Journal. The Journal reports that between €2 and €3 billion in deposits have been withdrawn from the Greek banking system each month for the past two years. January was a high point, with €5 billion.

A bank run by any other name would look as desperate. And who wouldn’t be desperate now?

Leaving the euro, devaluing the drachma, and defaulting on debt owed to foreign creditors are Greece’s best long-term economic survival strategy. But the unavoidable side-effect is to destroy the savings of the people, not to mention usher in a period of lower standards of living.

That won’t win you many votes. It may start a revolution.

And how do you prevent the Greek precedent from being imitated by the Spanish and the Italians? To be candid, we don’t think it matters much now. Greece can’t afford to stay in the euro. The Spanish and the Italians can’t afford to leave it.

The Future of Europe

The economies and banking systems of Spain and Italy are indispensable to Europe. If they leave the euro, there is no euro. The Greeks can leave, devalue, default and use a weaker currency to claw their way back to economic competitiveness. If the Spanish and Italians leave, they lose access to private capital, they lose access to the ECB and they take down Europe’s banking system. They can’t leave. More importantly, they can’t be allowed to leave.

This makes the task of the European Central Bank (ECB) much easier. It simply has to guarantee Greek debt owed to all non-Greek creditors. Or, it could simply buy that debt. This would solve the problem of anyone outside Greece taking losses on Greek debt.

This is what corporatism looks like, when the Big State and Big Finance become the Big Power in the economy. Losses cannot be tolerated. Any loss results in lower equity capital at a financial firm would require selling assets. Since everyone owns a piece of everyone else, and owes to everyone else, any major loss in one place results in losses everywhere.

Of course it’s absurd that Europe is moving toward this kind of ‘extreme socialism’. The people most responsible for the crisis are not accountable and the people who have saved get punished. The elite are enriched and everyone else is enslaved.

This is why the financial crisis could so quickly become a political and social crisis. When people don’t think they can get justice from the courts or the cops, and when they think that cheating is the only way to get ahead in a system, the political and financial order is on borrowed time. The clock is ticking.

Dan Denning
Editor, The Daily Reckoning Australia

Publisher’s Note: This article originally appeared in The Daily Reckoning Australia

Ed Note: Dan Denning is the editor of The Daily Reckoning Australia and the Publisher of Port Phillip Publishing. He began his financial publishing career in 1997 and has covered financial markets form Baltimore, Paris, London and, beginning in 2005 Melbourne. If you like what you’ve read from Dan today, why not sign up to his free daily newsletter, The Daily Reckoning.

You’ll get an independent and critical perspective on the Australian and global markets. But it’s not the kind of stiff-necked analysis you read from most financial commentators, instead, the Daily Reckoning delivers you straight-forward, humorous and useful investment insights from Dan and a wide range of other Aussie and global analysts. To take out a free subscription to The Daily Reckoning, click here…

From the Archives…

What Newton Knew About House Prices …That the IMF Should
2012-05-11 – Kris Sayce

Why a Greek Exit From the Eurozone Could Be Great News For Markets
2012-05-10 – John Stepek

Why Europe Will Ditch Green Energy
2012-05-09 – Kris Sayce

Why It’s Time to Buy Gold
2012-05-08 – Dr. Alex Cowie

Why You Should Be Watching Japan’s Economy
2012-04-07 – Dan Denning

Why Greece Can’t Afford to Stay in the Euro

By MoneyMorning.com.au

Gold a bubble? No chance, says respected Swiss investor Marc Faber.

The reason that people think gold is a bubble, says Faber, is that its current price seems a lot higher than its 1999 price of $252. But despite the significant gains, gold is still not as widely owned as other assets were during past examples of bubbles.

“In 1989, everybody owned Japanese stocks. And in 2000, everybody owned tech stocks. That is the bubble, when the majority of market participants own an asset. I think there are more people that own Apple stock than gold.”

The increase in gold’s price is down to the huge increases in debt levels, not tech-boom-style irrational exuberance.

“We had an explosion of debt, not just government debt, but private sector debt, and an explosion of unfunded liabilities.”

This creates “a situation where maybe the price of gold should be much higher because the economic and financial conditions are worse than they were 12 years ago.” The hard times encourage indebted governments to print even more money, driving up the value of gold.

Gold Reserves?

Faber, who writes the Gloom, Boom and Doom newsletter, also thinks that the growing reserves of emerging market governments will also help the gold price in the long run. “International reserves accumulate principally at the hands of Asian central banks and central banks in emerging economies,” notes Faber. Right now those reserves are in dollars and euros but Faber thinks that will change.

“Even a central banker, with his just-below-average intelligence, will one day notice that maybe it’s not that desirable to be in the US dollar or Treasury bills that have essentially no yield. In other words, you have a negative real interest rate on these dollars.

“So they move money into gold. They should have done it a long time ago. But don’t expect too much from a central banker.”

James McKeigue
Contributing Editor, MoneyWeek (UK)

Publisher’s Note: This is an edited version of an article that first appeared in MoneyWeek

From the Archives…

What Newton Knew About House Prices …That the IMF Should
2012-05-11 – Kris Sayce

Why a Greek Exit From the Eurozone Could Be Great News For Markets
2012-05-10 – John Stepek

Why Europe Will Ditch Green Energy
2012-05-09 – Kris Sayce

Why It’s Time to Buy Gold
2012-05-08 – Dr. Alex Cowie

Why You Should Be Watching Japan’s Economy
2012-04-07 – Dan Denning

Marc Faber: Gold is No Bubble

Source: ForexYard

The dollar was able to benefit yet again from risk aversion in the marketplace today, as worries about the Greek political situation caused investors to abandon higher yielding assets. The EUR/USD dropped to a fresh four-month low during the morning session, reaching 1.2679 before staging an upward correction. The pair eventually peaked at 1.2758. The greenback also saw gains against the Australian dollar. The AUD/USD fell as low as 0.9868 before moving upward during mid-day trading.

Turning to tomorrow, dollar traders will want to pay attention to the US Unemployment Claims figure at 12:30 GMT, followed by the Philly Fed Manufacturing Index at 14:00. Despite a lack of overall growth in the US labor market in recent months, the number of people claiming unemployment insurance in the US has remained relatively steady. Should tomorrow’s news come in below the forecasted 368K, the greenback could see gains vs. its main rivals. With regards to the manufacturing index, analysts are predicting the news to come in at 10.3, well above last month’s figure. If true, the USD/JPY could turn bullish as a result.

Read more forex news on our forex blog

Forex Market Analysis provided by ForexYard.

© 2006 by FxYard Ltd

Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.

By The Sizemore Letter

Utilities are the proverbial red-headed stepchild of stock market sectors.  During bull markets, so the thinking goes, utilities tend to underperform more aggressive sectors like technology  or industrials.  But during a good market rout, utilities take a beating along with the rest.

How unloved are utilities?

As I wrote in a recent article, they were by far the most shunned sector by the large money managers interviewed by Barron’s (see chart).   Fully 30% of the “Big Money” managers picked utilities as the worst performer of 2012, and barely 3% thought it would be the best.  (On the flip side, more than 30% of the managers chose financials and technology to be the best performing sectors, and technology had not a single manager who voted it worst).

As a contrarian trade alone, utilities would be interesting.  After all, the sector has been known to take investors by surprise; during the 2003-2007 bull market, utilities were one of top-performing sectors on a price basis, and this did not include the high and rising dividends enjoyed by investors during the period.

And this brings me to my primary rationale for liking the sector.  In a world where 2% is a “good” yield on a ten-year bond, the 3.8% paid by the Utilities Select SPDR (NYSE:$XLU) is attractive.  It’s roughly double the dividend yield paid by the S&P 500.  And unlike the interest paid by a bond, the dividends of XLU constituent companies have a history of rising over time.

While portfolio growth is essential to meeting your retirement needs, growth ultimately doesn’t pay the bills; but income does.  Yes, you can sell off appreciated shares to meet current expenses, but that doesn’t work particularly well when the market is trading flat or down.  Just ask investors who needed to sell their shares during the pits of the 2007-2009 bear market and panic.

The problem for most investors is that their traditional sources of stable income—bonds and CDs—simply do not pay enough in this interest rate environment.   This means that finding a respectable current income often means accepting stock market risk.

Frankly, I’m ok with that.  An investor who is comfortable holding a 30 year bond to maturity should equally comfortable holding a solid dividend-paying stock.  If income is your objective, the bends and twists of the stock market can be safely ignored—so long as you are reasonably sure that the dividend is safe.

Utility stocks have a place in a diversified income portfolio, but they are by no means the only game in town.  Select equity REITS are also highly attractive at current yields.  One that I recently added to my Dividend Growth Portfolio is Realty Income Corp (NYSE:$O).  It holds a very conservative portfolio of retail properties  and yields a healthy 4.5.%.

Oil and gas Master Limited Partnerships, and increasingly their general partners, are also attractive options.  Kinder Morgan Inc (NYSE:$KMI) is one that I recently added to my Dividend Growth Portfolio.  It currently yields 3.8%, and I expect the dividend to increase substantially in the years ahead as KMI’s limited partnership, Kinder Morgan Energy Partners (NYSE: $KMR), continues to grow and prosper.

Disclosures: Sizemore Capital holds O, KMI and KMR in client accounts.

We now have a Bullish Extreme in the USD. Over the last 5 years, Bullish extremes have been very good indicators that a top was within a hand’s reach.

Chart courtesy sentimentrader.com

On top of the Bullish extreme in the USD, we also have a Bearish Extreme in Gold sentiment. Bearish extremes have been good indicators that a bottom was near.

Chart courtesy sentimentrader.com

Silver Sentiment is also very depressed at the moment, with only 29.70% bullishness. However, sentiment hasn’t pierced the “standard deviation bands” yet, and thus has more downside potential…

Chart courtesy sentimentrader.com

All this Dollar-bullishness/Gold-Bearishness has caused mining companies to sell off BIG TIME.
Some of them are now 75-80% below their top, and when you look at their charts, it looks like the world is coming to an end for those companies.
That being said, the BPGDM index from stockcharts, which shows the % of mining stocks that have a BUY signal on the Point&Figure chart, is very depressed at 10.71% at the moment. In late 2008, this index reached 0% for a very short time. Funny to see that that time, the mining stocks had set a higher low. The HUI index has now dropped below the 50% Fibonacci Retracement level from the bottom of 2008 to the top of 2011, so the next target would be the 38.20% level, which comes in slightly below 350. My expectations are that we might get close to this level over the next couple of days, followed by a very sharp rebound (possibly as high as 450, which is the 61.80% level). What happens then is still unknown, but as I pointed out, the severe underperformance of the HUI stocks to Gold is very similar to 2008, which means that the decline might not be over yet, even though a sharp bounce is overdue now with the extreme bearishness…

Chart courtesy stockcharts.com

Let’s have a look at the weekly charts. Gold is ready to set a tripple bottom. However, if that attempt fails, look out below (especially below $1,450). The MACD has just turned negative, which doesn’t look well…

Chart courtesy stockcharts.com

When we have a look at the following chart, which is a weekly chart from 1980, we can notice a similar pattern:

Chart courtesy stockcharts.com

When the MACD just turned negative in 1980, Gold was trading above $500 per ounce. It fell all the way to $300 in the next 1.5 years or so.

Chart courtesy stockcharts.com

Silver is also at a critical point right now. If this level holds, then we have a tripple bottom. If not, look out below…

Chart courtesy stockcharts.com

Now over to the monthly charts:
Gold’s MACD is extremely stretched, and we have negative divergence between price and RSI. Since this is on a monthly basis, this is not a good sign for the future.

Chart courtesy stockcharts.com

Silver’s MACD looks set to drop lower (potentially much lower). First support comes in around $19-$20:

Chart courtesy stockcharts.com

The Quarterly chart for silver shows an extremely stretched MACD, and an RSI that is still hovering around overbought levels:

Chart courtesy stockcharts.com

The situation is even worse for Gold:

Chart courtesy stockcharts.com

When we finally look at the Yearly chart, we can see that Silver has set a bearish reversal candle last year, which we have commented on late last year. On top of that, the yearly RSI is still OVERBOUGHT!

Chart courtesy stockcharts.com

Last but not least, the comparison between Silver Now and the Nasdaq is still very accurate:

Chart courtesy stockcharts.com (Nasdaq Bubble)

Chart courtesy stockcharts.com (Silver “Bubble”?)

An overlay of the two charts speaks more than a thousand words:

For those of you who want to call me an “idiot” who doesn’t look at fundamentals, Martin Armstrong wrote in his latest report:

“Fundamentals really mean little. The whole fiat reasoning means nothing since gold declined for 19 years from 1980 when it was still fiat. The same is true in stocks when the price can decline on good news and it is explained by saying the market was expecting results “better” than that. Markets trade technically because they are influenced truly by everything. Each market is interlinked to everything else so it becomes a delicate dance of comparison and capital flows like water to the lowest cost for the greatest gain. Focusing upon just one market exclusively ensures failure.”

For more articles, analyses and trading updates, visit www.profitimes.com

I have decided to only accept new subscribers until June 30th. From then on my services will be open to existing subscribers ONLY. To secure your membership now, visit www.profitimes.com and subscribe now!

Introduction

After reaching its highest level this year, at 1.6303,
GBP/USD has dropped significantly to 1.6064. Notably, the pair has touched the
ascending trend line, and it may bounce off it or continue dropping down.

Factors Affecting:

It seems the pound has also absorbed the economic woes of
the euro zone as depicted by its poor performance in recent days. Thanks to
risk aversion, the dollar has gained considerably across the board. And,
although the pound has sometimes got some breathing space, it has continued
with its downward momentum.  In the
coming week, traders will be paying close attention to news from the United
Kingdom for any clues on the performance of the currency.

Technical Analysis:

Technical analysis on the GBP/USD reveals it has touched an
ascending trend line. Immediate resistance is found at 1.6128. A confirmed
break above this could expose 1.6303. Immediate support is found at 1.5988. A
confirmed break below this could expose 1.5790.

Forecast:

The best case scenario would be to wait and see if price
bounces off the trend line or if it convincingly breaks it. Otherwise,
aggressive short term traders can as well short the pair.

For more information about technical analysis and latest Forex news click here.

Disclaimer:

THE
ABOVE IS FOR INFORMATIONAL PURPOSES ONLY AND NOT TO BE CONSTRUED AS
SPECIFIC TRADING ADVICE. RESPONSIBILITY FOR TRADE DECISIONS IS SOLELY
WITH THE READER.

Triangles offer an important piece of forecasting information

By Elliott Wave International

There’s no shortage of books about trading these days, and you could read for months before you come across one that might apply to your trading style.

The free 45-page eBook The Best of Trader’s Classroom is specifically for Elliott wave traders and saves you time in getting the knowledge you want.

It’s written by Elliott wave trader Jeffrey Kennedy: he had individuals like you in mind when he said

I began my career as a small trader, so I know firsthand how hard it can be to get simple explanations of methods that consistently work. In more than 15 years as an analyst since my early trading days, I’ve learned many lessons, and I don’t think that they should have to be learned the hard way.

The Best of Trader’s Classroom offers 14 trading insights that you can use now.

Consider these examples of what you’ll learn:

• Use bar patterns to spot trading setups
• Use the Wave Principle to set protective stops
• Identify Fibonacci retracements
• Apply Fibonacci ratios to real-world trading

Jeffrey also discusses corrective patterns which includes the triangle formation. Here’s an edited eBook excerpt:

Triangles are probably the easiest corrective wave pattern to identify, because prices simply trade sideways during these periods. [The graphic below] shows the different shapes triangles can take.

….triangles offer an important piece of forecasting information — they only occur just prior to the final wave of a sequence. This is why triangles are strictly limited to the wave four, B or X positions. In other words, if you run into a triangle, you know the train is coming into the station.

Jeffrey goes on to provide three real world examples of the triangle price pattern. Here’s one of them with his accompanying commentary.

[The chart above] shows a slight variation of a contracting triangle, called a running triangle. A running triangle occurs when wave B makes a new extreme beyond the origin of wave A. This type of corrective wave pattern occurs frequently in commodities.

 

Learn more about the 14 trading insights that Jeffrey Kennedy presents in The Best of Trader’s Classroom.This chart-packed 45-page eBook has a $59 value — but you’ll get FREE instant access by simply joining Club EWI. Membership is also free and it just takes a minute or two to sign up. There’s no obligation after you join. Just follow this link for your free download of The Best of Trader’s Classroom >>