| 15 votes

It was another clean sweep for the markets yesterday.  The Dow, S&P 500, small-caps, mid-caps, transports and you name it all closed at record highs. The bulls continue to have the run of the house. And we know the driving force behind this rally hinges on the massive liquidity that the Fed is pumping into the system.  Currently, the Fed…
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| 11 votes

Most people who trade start with stock trading. Chances are they own stocks already, in an investment or retirement account, so it is the natural thing to begin with.  Then, after a while, they start to look at other instruments; options, maybe, or futures. These days many start to look at Forex. The dynamic nature of currency trading attracts them,…
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| 50 votes

My friends, you're being fattened up for the kill! I'll explain... Major market tops take months to form.  You would think that's GREAT, considering it gives us time to lock in some hefty profits on our bullish positions.  But the longer it takes, the more euphoric people get... the more leverage they use... the farther away the thought of ever…
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| 15 votes

Last week we tackled the question, Should You Sell in May and Go Away? And if you followed along, the main takeaway to my argument was that I felt that this year would take a much different path than the previous three years, which resulted in meaningful corrections that ensued right around this time of the year. If you recall,…
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| 5 votes

Somewhere deep in the human psyche we are programmed to seek order in chaos. We desperately want things to fit in a pattern. These philosophical musings were brought on by contemplation of Dollar Yen over the last few weeks. As you can see from the daily chart below, the pair has twice looked all set to continue marching up and…
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| 31 votes

The stock market has formed a nice channel that you can use to build profits and exit at the right times.  I'll show you how I built the channel, and how you can use it to trade.  More importantly, I'll show you how to know when it's likely signaling a change in direction.  Below is a 1-year chart of the…
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| 23 votes

The stock market wasted little time in giving you a quick reminder that it’s time to hit the sell button. Yesterday of course was the first trading day in May, and the 1% decline in the S&P 500 was the biggest daily loss to begin a new trading month since last June. And this comes just after the index reached…
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| 15 votes

“I would like to trade Forex, but...” is a phrase I often hear. It seems that everybody has their own pet theory as to why foreign exchange is not a suitable instrument for them. Some of them are legitimate -- if you are retired and have limited capital that you are drawing down over time, for example, then FX is…
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| 22 votes

Over the last 30 years the stock market (S&P 500) has had a Compounded Annual Growth Rate of 11.19% (including dividends).  Can you think of a better place to put your money than into the stock market? (courtesy of moneychimp.com) Well, it depends on who you ask, and when you ask them.  When markets are near peaks, it opens up…
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| 15 votes

If there’s one solid clue as to what’s really powering this market higher, look no further than to what transpired immediately after Tuesday’s midday fake Tweet from the Associated Press. “Breaking: Two Explosions in the White House and Barack Obama is injured”   That was the chilling Tweet that was sent out at 1:07 p.m. by the AP’s authenticated Twitter…
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