By Adam Hewison – In today’s short video we will be using MarketClub’s SmartScan tool to spot stocks that are trading in-line with the trend in the three major indices.
We will be looking at several different stocks and picking one, which according to our “Trade Triangle” technology, could have a significant move.
To see more of Adam’s Videos click here or sign up for Adam’s Free 10-part Professional Trading Course.
All the best,
Adam Hewison
President of INO.com
Co-founder of MarketClub
By Anton Eljwizat – Gold prices rose significantly in the last three weeks and peaked at $1237 an ounce. However, the daily chart is suggesting that a recent upwards trend is losing steam and a bearish correction is impending. Forex traders involved with commodities like this can take advantage of this knowledge by going short on gold at a great entry price!
• Below is the daily chart for gold by ForexYard.
• The technical indicators used are the Slow Stochastic, RSI and Williams Percent Range.
• Point 1: There is a “doji” candlestick formed in the chart, indicating that a reversal should take place.
• Point 2: The Slow Stochastic indicates a bearish cross, signaling that the next move may be in a downward direction.
• Point 3: The RSI signals that the price of this pair currently floats in the over-bought territory, suggesting downward pressure.
• Point 4: Williams Percent Range also supports the downward direction.
Gold Daily Chart
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
| Title: | EUR/USD – Down Trend |
| Story: | Trend is bearish in EUR/USD currency pair. EUR/USD is trying to print a possible bottom but in my opinion, intraday charts are providing upside corrections which should be considered as a sell opportunity around Fibonacci retracement levels in EUR/USD. |
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| Read Full Elliott Wave Forecast – Click Here…… | |
Coming Up Today (all times GMT)
• GBP Retail Sales m/m. (8:30)
• USD Unemployment Claims (12:30)
• USD Philly Fed Manufacturing Index (14:00)
• USD Natural Gas Storage (14:30)
Amid continuing concerns that economic recovery is slowing, gold traded close to its seven week high as investors sought the safe haven investment. On the riskier side, equities closed flat and most currencies remained range bound. The US dollar fell against the yen, the Euro failed to breach $1.29, and the Canadian dollar gained.
EURUSD
An optimistic outlook surrounded the Euro earlier this week due to an increased demand motivated by the German government’s bond auction and the single currency rallied to a $1.2930 resistance level. However, failing to hold firm above $1.29, Euro gains came to an end yesterday.
GBPUSD
Recovering from a three week low the pound hit the day’s high 0.1% higher at $1.556. This followed the release of the minutes from the BoE’s Monetary Policy Committee meeting earlier this month. The data released by the central bank showed an 8-1 vote keeping the interest rate 0.5%, with only one board member favoring an increase. The dissenting vote represented the view that economic conditions have improved sufficiently in the last year, therefore easing could be relaxed and interest rates could be gradually increased. Investors reported option related offers of $1.5660/90, which might limit the Cable’s gain.
Forex Market Review & Analysis by Finexo.com
Disclaimer: Trading the foreign exchange (Forex) carries a high level of risk, and may not be suitable for all investors.
Neutral Trend
GBPUSD is struggling in a battle between both market forces (bulls and bears) the instrument has a trading range to break. Any four hours close above (1.56860) will open the way for a little push upward to test the resistance level at (1.57537), and a four hours close below (1.54960) will let the instrument test the next support level at (1.54297).
| Important Price Levels | |||||
| Resistance | 1.56690 | 1.57537 | 1.58383 | 1.59060 | 1.60003 |
| Support | 1.55490 | 1.54960 | 1.54297 | 1.53523 | 1.52677 |
Forex Market Analysis courtesy of 4xEagleEye.com
By ForexYard – Riskier currencies like the euro and British pound tumbled vs. their safe haven rivals in early morning trading today, following news that the Japanese government would not intervene to limit recent yen gains in the marketplace. The yen has seen strong growth in the last few weeks, prompting rumors that the government would take measures to bring the currency down to less volatile levels against the dollar and euro. Drops in the global stock market also contributed to investors abandoning their more risky assets.
EUR/USD has dropped some 60 pips since last night, and is currently hovering right around the 1.2760 level. Against the yen, both the euro and UK pound have fallen approximately 50 pips since last night, and the pairs are currently trading around 109.00 and 0.8210 levels respectively.
This afternoon traders will want to pay attention to the Canadian Core CPI Figure, set to be released at 11:00 GMT. As the only piece of significant news set to be released today, it will likely lead to heavy market volatility. The CAD has seen fairly substantial growth over the last few days. Should the Core CPI figure come in at its predicted level of 0.1%, traders can assume these gains are likely to continue.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
Source: ForexYard
The Dollar advanced against most of its major counterparts Thursday as unexpectedly weak U.S. employment and manufacturing data weighed on stocks and other riskier assets, prompting investors to seek the relative safety of the greenback and Japanese Yen.
The U.S. dollar gained versus most of its counterparts Thursday as negative economic data deepened concerns that the country’s recovery is stagnating, sending investors to the safe haven USD and Japanese yen.
Disappointing U.S. employment and manufacturing data weighed on equity markets as well as riskier currencies which are tied to global growth, such as the Australian, New Zealand and Canadian dollars.
U.S. initial unemployment claims disappointed this week, rising 12,000 claims above expectations to 500,000 in the week ended Aug. 14, the highest level since Nov. 14 last year. The disappointing data intensified fears that the country’s already weak labor market is deteriorating further. Later in the day, the Philadelphia Fed index fell to -7.7 in August compared to 5.1 in July, and on economists’ expectations of an advance to 7.0.
The rise in claims was particularly troubling as no seasonal factors, like the hiring and firing of temporary workers for the 2010 Census, affected the recent employment results. Economists expected employment data to pick up in recent weeks.
With no major news released from the U.S. or euro zone today, investors should follow any movements in equity markets as these tend to have a major effect on the USD.
Renewed concerns about global economic outlook, brought on by disappointing economic data from the U.S. and comments by euro zone officials, spurred risk aversion in the markets and weighed on the 16-nation common currency.
Late Thursday, the euro was at $1.2820 from $1.2860 late Wednesday and at Y109.40 from Y109.87. The U.K. pound was little changed at $1.5606 from $1.5605; however, in today’s early trading the GBP has declined below $1.5600 and is trading near the $1.5885 level.
Investors are concerned that austerity measures taken across the region earlier this year in response to the sovereign debt crisis will hamper the regional economy’s growth and subsequently its economic recovery. This may also put lasting downward pressure on the euro as markets tighten up during downturns.
The Japanese yen rose to a 7-week high against the euro on signs the global economic recovery is slowing, turning investors to the safety of the Japanese currency as a refuge. The yen appreciated versus 15 of its 16 major counterparts after the release of disappointing U.S. economic data Thursday which showed that filings for U.S. unemployment benefits were more than forecast last week and a gauge of manufacturing in the Philadelphia region unexpectedly fell.
Japan’s currency climbed to 109.09 per EUR in today’s early trading from 109.49 in New York yesterday, after reaching 109.02, the highest level since July 1. The JPY rose to 85.24 per USD from 85.39 yesterday.
Weighing on the JPY is recent talk about possible intervention by Japan to stop the appreciation of the yen that is hurting Japanese exporters. Japan’s economy is heavily reliant on exports and, therefore, its fragile economic recovery. A strong yen can curtail the Japanese recovery.
Crude Oil futures prices settled at a 6-week low Thursday, hurt by disappointing U.S. economic data which was released Thursday as well as the highest inventories in nearly 27 years. U.S. initial claims for unemployment benefits rose by 12,000 in the week ended Aug. 14. Economists had forecast a drop of 4,000.
Claims totaled 500,000 in the week, the highest number since 14 Nov. 2009. Further disappointing data came from the manufacturing industry with the Philadelphia Fed index falling to -7.7 in August compared to 5.1 in July.
Light Sweet Crude Oil for September delivery on the New York Mercantile Exchange settled down 99 cents, or 1.3%, at $74.43 a barrel, the lowest price since July 7. The contract, which expires at today’s settlement, has fallen from a 3-month high near $83 a barrel on Aug. 4.
This pair appears to be floating in a sideways range between 1.2775 and 1.2900, with a current price just above the lower border. As expected, the indicators are showing an expectation for an upward move in line with this range trading behavior. The RSI on the hourly and daily chart both show the price in the over-sold region. It seems going long might be a wise choice today.
This pair seems to be floating in a range between 1.5525 and 1.5675 with the current price sitting in the middle of this range. Most of our indicators seem to suggest the next movement may be in an upward direction. The RSI on the hourly and daily chart show the price being over-sold, and we have a fresh bullish cross on the daily chart’s Stochastic (slow). Going long may not be a bad idea today.
This pair has been trading within a bearish channel since early May and our indicators seem to suggest that this will not likely change anytime soon. We do, however, have a recent bullish cross on the weekly chart’s Stochastic (slow) which may be hinting at longer-term corrective pressure, but with all other indicators neutral it is hard to tell. Going with the prevailing trend may be preferable in this situation.
There appears to be a fresh bullish cross on the weekly chart’s Stochastic (slow), suggesting some moderate upward pressure over the long-term. The price also floats in the over-sold territory on the RSI of both the weekly and 4-hour chart, supporting this notion. Waiting for the price to swing back upward and then going long may be a strong tactic in these circumstances.
After the significant drop in oil prices yesterday, we see some strong signs of corrective pressure. The daily chart’s RSI has the pair floating in the over-sold territory, and the Stochastic (slow) appears to show an already-elapsed bullish cross which has turned upward into neutral territory. The momentum appears to favor that forex traders go long and take hold of this swing while the upward momentum holds.
Forex Market Analysis provided by ForexYard.
© 2006 by FxYard Ltd
Disclaimer: Trading Foreign Exchange carries a high level of risk and may not be suitable for all investors. There is a possibility that you could sustain a loss of all of your investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with Foreign Exchange trading.
By eToro – The Euro slid despite a better than expected outlook from the Bundesbank, as riskier assets were sold on the back of disappointing US economic news. The Euro should consolidate and then begin to climb above 1.2900.
Click here to read the full daily Review
Forex Market Analysis provided by eToro
Disclaimer: Trading in the Foreign Exchange market might carry potential rewards, but also potential risks. You must be aware of the risks and are willing to accept them in order to trade in the foreign exchange market. Don’t trade with money you can’t afford to lose.
USDCAD broke above 1.0340 key resistance, suggesting that a cycle bottom had been formed at 1.0247 level on 4-hour chart. Now the rise from 1.0247 is treated as resumption of uptrend from 1.0107, further rise could be seen in next several days and target would be at 1.0600 zone. Support is at 1.0340 and key support is at 1.0247, only break below these levels could trigger another fall to 1.0000 area.
Of all the belief systems of Wall Street, few can claim the devoted following of the Efficient Market Hypothesis, the idea that stock prices adhere to the same laws of supply-and-demand that govern retail products. Once coined the theoretical “Parthenon” of economics, this notion has consistently endured the test of time —– until now. Academics and advisors across the globe are currently exposing crack after crack in the “Efficient” model so deep as to bring the entire theory crashing to the ground.
“The EMH is not only dead,” writes a July 29, 2010 news source. “It’s really, most sincerely dead.” (Minyanville)
As to what caused the theory’s collapse — one recent business journal offers this insight:
“Financial markets do not operate the same way as those for other goods and services. When the price of a television set or software package goes up, demand for it generally falls. When the prices of a financial asset rises, demand generally rises.” (The Economist)
Here’s the thing. SIX years ago, Elliott Wave International president Bob Prechter pronounced the exact same finding in his April 2004 Elliott Wave Theorist. (Read that full-length publication today, absolutely free by clicking on the hyperlink) In that groundbreaking report, Bob presented the compelling picture below that shows how investors increase their percentage of stock holdings as prices rise, and decrease them as prices fall:
The next question is why? Answer: Motivation: i.e. the purchase of goods and services is about need; while the purchase of stocks is about desire. Here, Bob Prechter’s 2004 Theorist takes the rein:
“The fact is that everyday in finance, investors are uncertain. So they look to the herd for guidance. Because herds are ruled by the majority — financial market trends are based on little more than the shared mood of investors — how they feel — which is the province of the emotional areas of the brain (limbic system), not the rational ones (neocortex)… Buyers, in a rising market appear unconsciously to think, ‘The herd must know where the food is. Run with the herd and you will prosper.’ Sellers in a falling market appear to unconsciously think, ‘The herd must know that there’s a lion racing toward us. Run with the herd or you will die.'”
Prechter and contributor Wayne Parker then expanded on his landmark observation in the 2007 Journal of Behavioral Finance. (Also available, absolutely free by clicking on the hyperlink)
In the end, it’s not enough to just tear down the long-standing EMH. One must build another, more accurate model up in its place. And in the 2004 Theorist, Bob Prechter does just that with the Wave Principle, which reconciles the technical and psychological sides of stock market behavior into this key point: Herding impulses, while not rational, are also NOT random. They unfold in clear and calculable wave patterns as reflected in the price action of financial markets.
As the mainstream media continues to jump on board Prechter’s Financial/Economic Dichotomy Theory, you can read both of Prechter’s original writings. Enjoy your complimentary access to the 2004 April 2004 Elliott Wave Theorist and the 2007 Journal of Behavioral Finance.
This article was syndicated by Elliott Wave International and was originally published under the headline Efficient Market Hypothesis: R.I.P.. EWI is the world’s largest market forecasting firm. Its staff of full-time analysts lead by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
