One of the questions we often receive is why we don’t simply lift our hedges when the market advances above some moving average or another, and replace them when the market breaks below those moving averages. Certainly, when one looks a chart, extended market advances always break above various moving averages, and extended market declines always break below various moving averages, so simple trend-following strategies seem utterly self-evident.
It is my view that we might now be approaching a crucial inflection point in the world's equity markets.
Last weekend, I explained that my preferred wave count expected the market to still be in a triangle pattern as of the market close last Friday, with the potential to turn down on Monday to complete the e-wave of the triangle pattern.
There's good reason to be both optimistic and cautious as we ring in the New Year. Four economic indicators, eight opinions: Are you a bull or a bear?
With the stock market on track to end 2011 flat or slightly lower, you might think an investor just couldn't catch a break. That's not exactly true. There are a number of investments that have performed very nicely in 2011, even outperforming gold (-GC), which is up 10%.
[[wysiwyg_imageupload:2405:]]By Chris Vermeulen
Everyone knows people make mistakes when rushed to do something or if they are scared of something bad happening. We also know fear and greed is what moves the market each month, week, day and tick… So when the majority of investors are selling their shares at the same time you must recognize the psychology behind it and prepare for a low risk trading opportunity in the days that follow.