October included a market phenomenon that left many economists and commentators scratching their heads. US stocks and oil prices both dropped simultaneously. In fact, it was the worst month for oil in 2 years and the worst month for S&P 500 in over 7 years. What was the “phenomenon”? Well, conventional wisdom says that rising oil prices are bearish for stocks. So, how could falling oil prices also be bearish for stocks?
Are you lost in your world of thoughts about the market? Your open positions, economic concerns are flashing through your mind very frequently. You might be thinking whether the market bottomed out, where the next support/resistance is, which stock one can pick up from these oversold markets, which stock can bring quick returns, where the best trading opportunity is, where the market could go next and arrays of thoughts might be running through your mind right now.
A stock market warning has just developed for those who are bullish. Here’s what I’m talking about (CNBC, May 22): The House voted May 22 to pass the biggest rollback of financial regulations since the global financial crisis.
We know that S&P 500 Index Futures (ES-Mini) and Crude Oil is correlated most of the time at lower timeframes. But recently the correlation seems to be missing between the two, where the ES Mini started rallying and the oil started dropping below sub 66 levels that make me write about the correlation relationship between the two.
Fibonacci is the mathematical basis of the Wave Principle. You will often find that Elliott waves correct in terms of Fibonacci ratios. The following article explains what you can expect when a market begins a corrective phase.
In this social media Era becoming an Independent thinker is lot difficult as we are often bombarded with continuous flow of opinions,information,rumors from the facebook groups, Whatsapp/telegram chat groups, twitter, financial news portals, TV channels, Youtube channels, E mail newsletters. Everything talks about what the consensus is doing. Some are contrarians, some are trend followers. Often traders ended up with the biased opinions from their fellow community traders/Investors.
Year 2018 kick-started with a bang. There can’t be a better time other than the start of the year to revise your trading performance, to correct past mistakes and to explore better trade opportunities. Optimizing trading performance requires a meticulous effort. Here are some of the trade resolutions which could fine tune your trade performance and put you as a better professional traders.
Our friends at Elliott Wave International (EWI) regularly put out great free content on their site. If you’ve visited their site before, you may have seen “Chart of the Day,” a featured series of videos that take a quick, but close examination of a chart from one of EWI’s paid publications.
In the long run, the direction of most equity markets is always up. That’s the best reason one can think of for long term buy and hold style of investing. However, there are downsides in the short term. The efficient market hypothesis indicates that investors (or fund managers) can’t do much about these temporary downsides. Does that mean the market is efficient?
Close to ninety percent of all traders lose money. The remaining ten percent somehow manage to either break even or even turn a profit — and more importantly, do it consistently. How do they do that?
Do you see a pattern you recognize in this chart of Reynolds American (RAI)? The Wave Principle separates price action into two categories: motive and corrective, and this price chart has a clear example of one category.
Generally Panic events trigger strong emotional reactions that often results in ending up catching the trade at unfair price zones and makes too much cognitive bias which will not allow a trader to revise their trade decision. Lets analyze what happened on Nifty Futures. On 10th Nov 2016 SGX Nifty was trading around sub 8200 levels at the pre-open and market opened with the strong tone of bearishness as the global markets are in panic, S&P futures overnight markets crashed, Asian market crashed.