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The Dow and the NQ have potential MTPredictor buy setups that could trigger long this week and take the markets to new highs. If they don’t get triggered in or rollover and break the current support, we may be headed for a wave 3 down. Check the video for the entry, stop and targets as well as the wave 3 low projections.
Oil rallied into DP resistance once again and fell off from the level. If this level holds, then a test of the lows may be in the cards once again. The monthly support sits just below 40. If the resistance is broken then the rally would have some room to the upside.
After retesting its recent lows, gold rallied back to the 1200 level. I’m looking at this as its bull/bear line. With the Fed set to speak again on Thursday and expected to continue to call for higher interest rates some time this year, look for gold to gain some clarity and move either to the next resistance or retest the lows from here.
Check out the rest of the analysis 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 professionals trade differently than most traders. Successful traders control their initial risk, which is all one can control, and look for rewards that are at least twice the size of their initial risk.
I showed how the MTPredictor software helps the trader control their initial risk by providing low risk setups while also providing targets that are at least twice the size of the initial risk.
See how this is done using the MTPredictor Elliott wave and Fibonacci trading software for stocks, commodities, futures and forex.
Wednesday’s Fed announcement on interest rates left many market participants wondering if the Fed may simply be using language to talk the markets where they want them but the reality may be that they will not be able to raise rates in 2015.
The word “Patience” being removed from the Fed language sent the US dollar reeling and the Euro rallying. Later, some at the Fed tried to do some damage control and the dollar began to recover some of its earlier session losses.
Stocks still have yet to see the Dow Transports confirm the prior highs in stocks. The financials are also off their highs while the utilities completed a correction from their wave 5 highs which was an indication that institutions were preparing for potential inflation ahead rather than deflation. Keep an eye on these to see how this sorts out.
We have a full week of economic data so it should be a good trading week.
Check out the rest of the analysis in today’s MTPredictor Weekly Market Update.
We know that the majority of traders fail despite the fact that they win more trades than they lose. The problem is the wins are small and the losses are larger. This creates a situation where you are taking only 1 step forward on a winning trade and then taking 2 or more steps back on a losing trade. In the end, the math doesn’t add up to profitability.
If you instead, reverse the equation and start taking small losses and have larger wins, you start to take at least 2 steps forward on winning trades and only 1 step back on losing trades. You can see you don’t need to win on the majority of trades to make money this way.
See how the MTPredictor trading software can help you manage your risk and keep your losses small while your wins will exceed the size of these losses and start moving the equity curve in the right direction over time.
It’s that time once again. The Fed will announce its decision on interest rates on Wednesday the 18th of March. Bonds have already sold off from their highs in anticipation of a potential September rate hike by the Fed. We’ll see if the Fed plans on sticking to that schedule or if, in their eyes, the economy is dictating a change in timetable or course.
Stocks found some support on Friday as the ES filled a prior gap down at the 2040 level. I expect some consolidation now as we head into Wednesday’s Fed announcement on interest rates.
Gold broke the 1200 level that I pointed out would be the bull/bear line. If broken, I expected we would get a test of the prior weekly decision point support and a potential test of the more recent lows.
Keep an eye on the currencies and trade them with caution as the US dollar continues to surge while the Euro may find its way toward parity with the USD. The Swiss government and central bank is also looking to guide the Swiss Franc toward the 1.10 level so keep an eye on this as well.
Check out the rest of the analysis as I use the MTPredictor trading software as my guide.