Does your current trading system control your risk and maximize your profit without using lagging indicators or desperate optimization?
After breaking the weekly trend line support that goes back to the lows in 2009, stocks rallied hard by weeks end. The daily chart shows the rally in the MTPredictor wave 4 area. The STF shows there may be more downside ahead.
The last time we corrected, we ended up with a V-shaped bottom which is not common. Usually, the market will roll over to re-test the lows. This looks like what may be setting up. A retest of the trend line is also a possibility which means we may still have some upside to go. So far, we don’t have any indication that sellers are overcoming buyers. We will see if we get any additional follow through this week.
Oil rallied hard off of the weekly MTPredictor DP support. August-September tends to be a strong period for oil historically. It has run into some DP resistance on the hourly chart. We’ll see if that will slow it down some early in the week.
Check out the rest of the analysis in tonight’s MTPredictor Weekly Market Update
MTPredictor runner up 2011 Readers' Choice Award for best futures trading system.
-Read the MTPredictor article "95% of Traders are Insane!" in the August 2012 issue
MTPredictor has a very unique, isolation approach to Elliott wave. This allows the trader to find low risk, high reward trade setups instead of trying to predict the market with endless, changing complex corrections and wave relabeling.
Check out how the software utilizes Elliott wave and Fibonacci levels to give you the trading edge.
Investors have been concerned about the selling in stocks over the last few weeks and are wondering what is going on. If you have been following the Weekly Market Update over the last few months, you may remember the MTPredictor software generated a sell signal in the Dow back in May. I said I though this signal may have legs when the Dow Transportation average did not confirm the new highs in stocks. Stocks have now closed below an important weekly trend line. Where are they headed from here? I’ll give you some thoughts in this weeks video.
Gold, had also broken below its weekly Decision point support, began to rally as stocks faded. Will this rally continue or is the rally back to the broken trend line another selling opportunity here? Check the video to see what I’m looking for this week.
As gold has rallied, the US dollar has rolled over once again. The dollar is coming off a major monthly DP resistance level with a potential wave 3 target still out there. Will the dollar reach that target? Find out in tonight’s MTPredictor Weekly Market Update.
Many traders focus on the rewards of trading and find the rewards disappear even though they may be successful 80%+ of the time. Most professionals do the opposite: they focus on the risk side of the equation to make sure that risk is small and controlled in relation to the rewards. They realize that the only thing you can control in trading is the initial risk. See how MTPredictor focuses on controlling and managing the initial risk to keep losses small and how the rewards will then come.
The other day, I looked up “Elliott Wave” in Investopedia and, much to my surprise, I found a great article by a CMT named Matt Blackman entitled, “Elliott Wave: The Best Of The Theory”. In the article, Matt highlights MTPredictor and the benefits of using its isolation approach to Elliott wave for the purpose of capturing low risk, high reward trade setups. Matt also includes some great comments by some well know professional traders on the realities of trading.
You can check out the full article HERE.