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The Dow and the S&P both closed the month of April on a positive note. Historically, this is a better indicator than the January effect. If April closes on the plus side, then there is a high probability that we will end the year on a positive note.
One issue the market is currently facing though is that the NQ and ES have made new recent highs while the Dow, along with the Dow Transports, have failed to make new highs. This is an unhealthy divergence for stocks if it continues.
The Euro continued to rally against the US dollar. The weekly chart shows this rally up is a potential wave 4 in a current downtrend. Will see, if wave 4 is completed, if the selling in the Euro continues into a wave 5 down.
Check this and all the analysis including a look at the cyclical nature of trading in this weeks 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
During today’s MTPredictor trading webinar, I showed how the software generated trade setups are a starting point for the new trader to help them locate low risk, high reward trade setups. These setups include the entry, stop, initial target, correct position size and whether or not to take the initial target or trail with a trailing stop.
Then, I showed how the more experienced trader can utilize the tools in the software to locate larger degree support and resistance and then, look for trades in this direction.
Check out how this is done in today’s MTPredictor webinar recording.
During today’s MTPredictor webinar I showed how MTPredictor is so different from any other indicators or trading software programs out there. I covered the software generated signals which offer the new trader low risk, high reward setups. I then showed how the tools in the software can help the more advanced trader uncover additional trade opportunities using our decision point tool as a starting point.
Check it out in today’s MTPredictor trading webinar.
The ES put in an important high earlier this year. We had a potential wave 1 sell off from there which may have started a new trend in the downward direction. This week we just completed an abc correction to this earlier initial wave 1 down move. Elliott said this area, wave 2, is the best place to be a seller as the wave 3 move down tends to be the largest wave. The wave 3 down may now be in progress. The Dow Transports took out their prior support levels last week so this may be another sign that all is not well in the US stock market. We’ll see how this plays out.
The TS3 sell signal in the US Dollar has moved below the 100% initial risk line which means stops are to break even. We will see if we reach the minimum wave c target from here or the potential wave 3 down.
Gold closed the week above 1200. This is the bull/bear line in the sand for the metal. If we complete and abc correction in gold, there is the possibility of it going wave 3 up. We have not reached the wave 2 pullback support yet but we’ll see what happens this week.
Check out the rest of the analysis in tonight’s MTPredictor Weekly Market Update.
During today’s MTPredictor we analyzed the YM and ES using the tools in the MTPredictor add-ons for Ninja Trader 7. See how the software can help you find high probability, low risk, high reward trade setups.