Understanding the direction of the market as well as the economic activity will lead to profitable trades. Keep up with our live news feed with TraderMongers.com!

S&P 500

A weak July consumer confidence fell to a 5-month low offset the latest round of strong corporate earnings. On Wednesday June durable goods orders as well as the weekly mortgage applications and petroleum reports. The Beige Book is expected today which report economic conditions used for the FOMC meetings in 2 weeks. Expect the market to move after the 2pm Eastern Standard Time announcement.

On the S&P 500 on the 60-day chart shows we have been rallying since the beginning of July especially after options expiration last Friday. Expect the market to hit the January 2010 resistance level as we approach the slowest month of the year – August. The volume will not be enough in August to break through the January resistance levels.

TO BE CONTINUED WITH CHARTS AND VIDEOS HERE!

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- About the Author: Shamim Ziyaaudhin is one of the editors of TraderMongers.com a one stop trading news feed source for worldwide traders and investors. Their philosophy is to establish the standard for providing market news feed that is comprehensive, accurate, and concise. Providing technical and fundamental trading setups, economic numbers, and calendar events throughout the trading day. Shamim has a Masters in Business Administration from Fairleigh Dickinson University and holds a degree in Psychology from Rutgers University. Click here to subscribe to Tradermongers Live News Feed Article Source

Did you watch this important trading video? The one where Dustin Pass predicts hours in advance the exact time and direction the market is going to spike, creating over 2k in profit in SEVEN SECONDS?

If not, go watch it here:

==> Visit Oracle Trader Official Website

I’ve never seen anything in FOREX quite like this! It was almost like a magic trick. He actually gives the exact time down to the second when the market will move and the direction.

What’s better than watching it happen? Learning how to do it! Yep, Dustin put together a second video in which he goes step-by-step through exactly how he does it.

It’s shockingly simple, consistent, and nearly fool-proof!  Dustin became a millionaire by age 29 trading the Forex using this method! In fact, once you see how it’s done you’re going to wonder why you didn’t think of it!

My jaw nearly hit the floor when he showed me this method, but it was the fact that he had been recording every trade for the last four years that really got my attention. Not one losing month since he started it!

Did that sink in? He’s never had a losing trading month with this system, and he has 4 years of trading videos to back it up.

So no matter what else you have going today, carve out a few minutes to watch the videos – the first video is just a demonstration, the second video is the instructional video which breaks it down and shows you exactly how you can do it too!

Go watch.  Seriously, this is one video that NO TRADER should miss – it’s that stunning!

The training video is only eleven minutes long. Don’t put it off, I am not sure how long the video will be online!

==> Visit Oracle Trader Official Website

The Oracle Trader brings you the technology you need to gain as many pips as possible in the shortest period of time. Once you’re all setup, everything is on autopilot, almost like a robot is making the trade for you. Both entries and exits are covered for you. BUT – It’s not a Forex robot, it’s not a manual trading system. It’s a truly unique software. Oracle Trader by Forex Traders Daily is a Forex trading system – signals and auto trading software. It also includes Forex trading training.

Oracle Trader system is base on financial market news releases. It works on an idea that the market movement can be predicted based on how the release of important financial data meets its expectations. And because the releases take place at known times, it is possible to predict when the movement occurs.

One of the best things about the Oracle Trader software is the fact that you can virtually automate the whole process of news trading….

==> Read Oracle Trader Full Review

- About the Author: Rob Trader – Forex Expert http://tradingtoollist.co.cc/ Article Source

Since the early July stock market low the sentiment has completely changed. In late June and early July every business talk show in the media was mentioning a stock market death cross (50 moving average crossing over to the downside the 200 moving average) and a massive head and shoulders top pattern (symmetrical bearish pattern that can often predict the target) in the S&P 500 Index and the Dow Jones Industrial Average. It seemed that Armageddon was upon us. However, as we all know when everyone is looking at the same thing the market rarely does the market allows that to happen. As you all know by now the market has only rallied from early July and has now traded higher by over 10.0 percent.

Now the business shows in the media are feeling good again. Investors are once again getting bullish looking for new highs. It still amazes me that people hated the market around 1011.00 on the S&P 500, however, they love it at 1118.00 when it is higher by more than 10.0 percent. Traders and investors in the media are now telling traders to buy stocks when we are nearing major important resistance levels. Are you telling me you want to buy Freeport McMoRan Copper & Gold Inc (NYSE:FCX) now at $71.50 when you could have owned it in early July at $57.00? What about Cliffs Natural Resources Inc (NYSE:CLF)? These people want you to own it now at $56.00 when they could have owned it at $45.00 in early July. People, this is when the professional trader is selling it to the public. Remember the public is always late to the party.

When everyone loves the market, that is the time to get out. When everyone hates the market that is the time to get in. The talking heads in the media always tell people to chase stock moves higher. It is the same as when a major brokerage firm upgrades a stock at a high. Just look at what happened to Jetblue Airways Corp (NASDAQ:JBLU) on June 14th when it was upgraded $6.80. Ironically, there were not any upgrades to mention on July 2nd when the stock was trading down to $5.25 a share. Simply put just learn to read the charts and forget the news.

Nicholas SantiagoChief Market Strategistwww.InTheMoneyStocks.com

- About the Author: Nicholas Santiago started trading in 1991. In 1997, he became a licensed Series 7 and 63 registered representative. He managed money for a large, affluent private client group. After applying his knowledge to his client base, he decided it was time to begin teaching those interested in learning his methods. He is an expert in Technical Analysis. He has become an accomplished technician in the studies of Elliot Wave, Gann Theory, Dow Theory and Cycle Theory. In 2007, he partnered with Gareth Soloway to form InTheMoneyStocks.Com and realize his dream of educating others about the truth of the markets. Article Source

Overnight Developments

• European stocks this morning are trading with solid gains with the European Stoxx 50 up 1.04%. Sep S&Ps are up 6.20 points (+0.56%). European stocks have been boosted by the continued decline in bank risk and a sharp 9% rally in UBS due to a favorable earnings report. The Markit iTraxx Financial Index of credit default swaps for 25 banks and insurers fell for the 6th day by 6.5 bp to hit a 3-month low of 111 bp. Deutsche Bank rallied by 3.5% after also reporting stronger than expected earnings today. The European stock markets were also encouraged by the fact that Hungary was able to sell $228 million in 3-month T-bills despite the recent financial turmoil in Hungary and the forint rallied by 0.8%. In another favorable US earnings report, Du Pont reported Q2 EPS of $1.17 that was well above the analyst consensus of 94 cents and raised its full-year 2010 EPS guidance to $2.90-$3.05 from $2.50-$2.70.
• The Asian markets today closed mixed: Japan -0.07%, Hong Kong +0.64%, China -0.55%, Taiwan -0.51%, Australia +0.25%, Singapore +0.42%, South Korea +0.03%, Bombay +0.32%. India’s central bank today raised its reverse repo rate by 50 bp to 4.50% and its repo rate by 25 bp to 5.75% in order to address inflation concerns. The central bank raised its India GDP forecast to 8.5% from 8.0% and its wholesale price inflation forecast to 6.0% from 5.5% for the year through March.

Day Trader: Click here for the complete Morning Call.

The Dow pushed up through the 618% at 10,165/72 therefore that took out the Elliott wave structure downwards for the time being, but it has not taken out the terminal high of 10,408, indeed technically the Elliott count down is still in play, this is major to realize ahead jumping the gun and exiting or going long, the news that pushed the market overnight will be disregarded tomorrow.

Firstly, we need to see if resistance becomes support at 10,300, there are markets on their supports in Australia mainly, the Materials sector, as it is above the MediumLevel 11,500, in line with US BHP above 65 and local BHP above 38, the banks on the other hand are not supported they are facing resistance, the Dow is on 10,000 which is support, we have been anticipating a break there, the same with the XJO on 4300 support (Group1)

Gold is not on sustained, sure it has rallied and might shatter from 1200 or push to 1230 if the Dow pushes to 10600, however for now it is under 1200.

Forex, the AUD will push higher leading stock, whenever the DXY breaks done 82, it places it into a bigger bearish picture toward 80 and the Euro above 1.30 this would change the wave counts there, it hasn’t occurred as yet and we require seeing this played out

It would be tempting to chase the resource today, if so keep it tight and understand Copper is creating the first high above the level TL3 and will retest it, so expect a likely pull back and crude touching on 80 will meet with a reaction, I saying don’t get trapped, play a shorter time frame.

The ASX200 XJO is finding support at 4400 however it starts running into supply and resistance at 4500, the 618% retrenchment is around 4700 and the 50% retrenchment at 4600, so there is resistance all above 4500, so whatever happens at 4500 will set the scene for the next trend. There are a variety of things that can happen, firstly, it is likely to react to some degree, either failing at this level or gathering itself after the reaction and climbing above creating the first high above the level then retesting the level for support, but normally the first high above the level is the top of the last trend, so from here a larger pattern would unfold across 4500, eventually finding support if this is the case we would be trading long from here, the other point on the local markets is that stocks are current oversold and without the fear of the US to hold then down they will move up quickly, so we also need a trading plan for that.

In a nutshell the resistances for the Dow at 10,500 and the ASX200 at 4500 are the key points for the week ahead. Whenever these levels become support then we can await higher moves, these events when they come will take time to evolve we will be discussing the finer details of this possible ness if it unfolds.

- About the Author: TradingLounge™.com.au and the TradingLevels™ Analysis Service have been developed by Peter Mathers to meet a growing demand for accessible, sensible education and his TradingLevels™-based analysis. Delivering high quality analysis and trades recommendations for shares, CFDs, cfd technical chart analysis, indices, commodity, the TradingLounge™ has been in strong demand growing from strength to strength. Peter is author of “Trading CFDs in Today’s Markets“. If you want to know more about trading analysis, click here. Article Source

We at Tradingtoollist.co.cc get asked all the time by traders if it really is possible to PREDICT market movement consistently? Or…

.. Is it just a myth that we forever chase, but never achieve?  It’s a great question, and the answer might surprise you!

Recently we were introduced to an amazingly simple trading method by Dustin Pass, and we would have to say that his prediction method is the best kept secret in the Forex industry.

We asked him to share his secret with you, and Dustin agreed, so he has uploaded a short market prediction video to show you that not only can the market be predicted but to also show you specifically how to profit from this amazing yet simple concept.

Click this link to watch the video now:

==> Visit Oracle Trader Official Website

We suggest before you click the link, that you find a quiet spot, where you will be free of distractions, so you can focus on the video and fully absorb what he is going to reveal.

He keeps this method low-profile, because if too many people get their hands on it, it becomes less effective.  Kind of like if everyone in Vegas won, the casinos would go out of business.  But this isn’t gambling – not even close – he has a 5 year track record with this, and we have personally audited this record and it’s ‘legit’.

So put a DO NOT DISTURB sign on your door, and click the link below to see how Dustin predicts market direction consistently and profitably:

Watch The Video Here:

==> Visit Oracle Trader Official Website

Limit Your Emotions and Follow Your Plan,

We don’t know how long this video will be available, so don’t procrastinate, watch it ASAP!

The Oracle Trader brings you the technology you need to gain as many pips as possible in the shortest period of time. Once you’re all setup, everything is on autopilot, almost like a robot is making the trade for you. Both entries and exits are covered for you. BUT – It’s not a Forex robot, it’s not a manual trading system. It’s a truly unique software. Oracle Trader by Forex Traders Daily is a Forex trading system – signals and auto trading software. It also includes Forex trading training.

==> Read Oracle Trader Full Review

- About the Author: Rob Trader – Forex Expert http://tradingtoollist.co.cc/ Article Source

For many years people from all walks of life have wanted to learn how to day trade. If you ever thought about learning to day trade, you should read this article on day trading and what is needed to be a successful day trader.

Most people think of big money, and a great life style when referring to successful day traders.  Becoming free of your boss, and losing the 9 to 5 job has its perks. The best feeling a day trader has is the instant gratification one gets from consistently being profitable.  All these things are true.  You can change your life for the better.  You don’t have to work long hours in a job you hate.  Day trading is by far the only way you can be independent from anywhere in the world.   But not everyone can succeed in day trading. More often than not traders without experience jump into day trading without understanding exactly what to do.  You wouldn’t fly a plane without first learning the important steps needed to fly a plane.  The result would be a crash and burn.

Professional day traders guard their trading secrets.  Remember that big money needs the little guy to take from.  Most aspiring day traders start their journey by joining a chat room, or following advice in forums posted by unsuccessful traders. Since no College degree exists to learn how to day trader, you must educate yourself on the art of day trading the right way.  Books and DVD’s offer insight and theory but fall short when it comes to real life experiences.   Only by learning side by side with a professional the actual methods the insiders use, will you have the ability compete on a level playing field.  Otherwise it’s like taking candy from a baby, and you are the baby.

If you are a beginner trader or an experienced trader, DayTradeToWin is now offering a private mentorship program designed to teach you the actual methods used by professional day trades to beat the market. This is a complete program offering you one on one with the trader and founder, John Paul as he shows you and teaches you the missing links of trading.  The Classes are held multiple times a week during the trading day. The program has been extremely successful with traders. “It’s the A-ha moment that I love to hear from traders”, says John Paul, founder of DayTradeToWin.

Most traders have the basic information on trading, but a complete package from A- Z is a necessity to success.  Most trades don’t see the entire picture when trading.  There is a road map that each trade needs to follow. These precise techniques are taught, and will change the way you look at the markets forever. The 6 week program consists of everything you need to become a self-sufficient day trader.  The Atlas Line is also included with the program which is a propriety trading tool only available at DayTradeToWin.  More information on the mentorship trading program can be found at www.daytradetowin.com.

The 6 week program includes the following:

If you would like more information about this exciting new program please contact John Paul and  daytradetowin by email at support@daytradetowin.com or toll free at 888-607-0008

Disclaimer: Day Trading in futures is extremely risky and involves substantial risk of loss. Therefore you should consider carefully whether such trading is adequate for you. Trade only with risk capital-funds you can afford to lose.

- About the Author: John Paul is founder of daytradetowin.com and has been providing educational trading techniques using price action to successfully day trade the emini sp and other financial markets. Article Source

What are Stop-Losses?

Due to the volatility of some markets, a stop-loss is recommended for many types of spreadbets. This is a level at which the bet will be automatically closed if the market moves against you. Often these levels may be subject to some ‘slippage’ if the market moves particularly quickly, and it is not possible for the spread-betting company to close the position in the market. Most companies now offer guaranteed stop-losses, which are guaranteed to close at a certain level. However they usually charge an extra point of two of spread for the priviledge. This effectively transfers sme of the risk of fast-moving markets to the company.

What are Trailing Stops?

A trailing stop is a moving stop that follows the price of an instrument, ensuring that any sudden movement does not wipe out profits already made – effectively locking in profits.

Example:

You think that a rising Oil price will bolster the profits of BP over the coming months, and hence increase the share price.

In July, you place a ‘buy’ bet on BP.L to end in September (you can cash the bet in at any time up till the end of September). The current share level is 590 pence.

You are offered the following price on BP.L September.

Bid: 595 pence Sell: 585 Pence

(Generally the further away the end date of the bet, the higher spread is incurred)

You Place a buy bet at £10 a point at 595 pence.

You Place a trailing stop 20 points away from your buy price. (575 pence)

If the price was fall to 575 pence immediately, with the bid/offer at 580/570 your stop would be hit, and you would lose 595-570=25 * £10= £250

However, if the price was to raise to 670 (675/665) pence, you would be in a position to close at 665-595=70 * £10 = £700

If during this time, your trailing stop would have moved to 650 – ensuring that even a fast downward movement would not wipe out all your profits. Even if the market for BP shares crashed overnight, your guaranteed trailing stop would ensure that you profit by 650-595=45 * £10 = £450.

- About the Author: This article was contributed by Andy of http://www.financial-spread-betting.com, a UK financial website which specialises in offering free guides and information on stockmarket products such as financial spread betting Article Source

Good morning,

As promised, we would like to expand in some detail our current view on the market, and the resulting actions taken Thursday and Friday this week. At times share trading can be about capital preservation, and in part that is what we are trying acheive.

Thursday, positions were sold in HVN, NAB and QBE, followed up with a sale of LLC on Friday. This leaves 95% of the portfolio now in cash with one remaining investment in Quickstep Holdings.

We have been reading extensively regarding the situation in Greece and have some serious concerns. In short, (talking only OECD countries) Greece has, along with Iceland, Italy and Japan an extreme level of public debt as a percentage of GDP (over 100%). The big different for Greece over those others is that it’s budget deficits are also very high, at over 12% of GDP per annum, and so the speed with which the debt is growing is fast.

Greece is now at the point where it can no longer service it’s debt and this is creating a panic of sorts. As a member country of the single EURO currency, defaulting on public debt would have disastrous consequences for other member countries and the currency itself.

We should note here that Ireland, Spain, the UK, Portugal and the USA have budget deficits of 10% or higher as well, and are forecast to continue these for the foreseeable future This will bring those countries to 100% debt to GDP ratios or above, and well above comfortable levels.

That said this is (most likely) how we see the scenario playing out: The strongest European Countries such as Germany will structure some kind of rescue or restructure package to reduce near term debt obligations and to reduce funding costs for Greece. It would be catastrophic if Greece defaults, because some level of contagion spreading to other Euro countries is inevitable. Because of the clearly negative results of an outright default, Germany is most likely to support the rollover of Greece’s debt in the near term (there’s 8.5 Billion Euros worth just in May ‘10).

Financial commentators (so far) for the most part aren’t worried.

So here’s the problem we have: no matter how much we read, or who you might talk with or listen to, no-one can tell you exactly what the financial consequences of a restructure of Greece’s debt might be, or why bond investors should continue to lend to other countries who are, in all forecasts that are available, on exactly the same path that leads to where Greece is now at.

What we have seen is that as soon as the equity markets were given specific data (S & P Downgrades) which enabled them to more accurately measure the impact of the crisis, it was immediately reflected in lower equity market prices. We feel there is a very real chance that once markets are able to calculate the costs (once a bailout is announced) they will move sharply lower to reflect the actual cost of the crisis globally.

We are all agreed that debt cannot continue to be taken on board forever, that at some point it has to be re-paid (or defaulted). We are all agreed that a Government should not simply print new money to re-pay debt. This is especially so for Euro currency member countries, yet this is exactly what the UK and the USA are doing right now, innocuously named ‘quantitative easing’.

The fact of the past two years is that unsustainable levels of private debt in the USA (which caused the GFC) have been transferred to the government’s balance sheet, with the remainder being printed in the quantitative easing program. There is much debate on whether this will absolutely definitely lead to inflation and another unwanted recession, but most economists agree that some level of higher inflation in the future is inevitable.

Our job is to look for catalysts for possible share market moves, and given the above there is a possible related move in equities coming quite soon. We’ve been consciously aware of a looming debt problem with the USA for ten years now, in fact since massive budget deficits became the new normal.

But clearly trading equities for a share market reaction to that debt for ten years wouldn’t have yielded very good results! In our view today, the Greece problem is a real and present catalyst for a downward share market move because:

1. Financial commentators by and large are writing recovery stories, none are analysing in any real detail what Greek debt contagion issues there might be. Commentary is 99.9% backward-looking because these guys are journalists, not economists.

2. The Greek debt ‘problem’ just won’t go away. After first being reported the issue was apparently ‘fixed’ and our market went to new highs around 5,000 points. Today new levels of risk awareness are being priced into financial markets. This tells us it will likely be some time before this fully plays out and one of our favorite share market rules is ‘the market hates uncertainty’.

3. Greece is symptomatic of an issue that is now common to quite a few, much larger, OECD countries. All of the countries discussed above will be in a similar debt position (very high public debt levels combined with very high budget deficits) within the next three years. Whilst there has been some discussion of the most at risk countries such as Italy, Ireland, Spain and Portugal in the press it is difficult to discuss potential problems with the UK, Japan and the USA without sounding like a crackpot conspiracy theorist. See point number 1.

4. Hedge funds have been targeting the Greek bond market and having an absolute field day. Two days ago the two year Greek bonds were yielding 24%, today that figure is just 13%. There’s money to be made targeting other vulnerable countries’ markets such as Portugal or Italy or both they will do so.

If there’s a continuing problem in the Government bond markets, for the medium term, investor’s appetites might just dry up a little.

If ‘safe’ assets such as treasury-backed bonds are rebranded ‘risky’ assets as has happened with Greece, the cost of funding debt for Governments will rise as did private debt funding two years ago. There will also be a corresponding sharp fall in the amounts of money that can reasonably be borrowed.

There is a slim possibility that things go badly for world markets, in which case we’re now unconcerned – and you’re money is safe. The likelihood is that it will be contained, however it is more likely than not that markets will see lower levels before that time anyway and we can buy back our positions at lower levels. That or the market will trend sideways and we will have been protected for no opportunity cost. In the worst case scenario the market continues to charge higher in which case we will have traded quality positions for cash, currently yielding 4.25%.

Each time this issue rears it’s head it appears to be getting worse. In our view you can’t simply transfer unsustainable levels of private debt to the public balance sheet and go on your merry way. In our view the only really prudent measure given this catalyst is to exit the market for the time being and wait for opportunities to present themselves as events play out. One of the benefits of our trading strategy is that we don’t have to be invested in stock all of the time. In point of fact, cash is an investment in itself and our current position is now cash.

If you would like to talk to me about anything at all, please call the desk.

- About the Author: William Shaw is a boutique investment manager which specialises in offering Managed Accounts to private individuals, Self Managed Super Funds and financial planners in Australia. Our Managed Accounts service has outperformed the ASX 200 by 23.32%. For more information about our managed share investment service and about our high conviction active investment methodology, visit Managed Funds Article Source

For many years people from all walks of life have wanted to learn how to day trade. If you ever thought about learning to day trade, you should read this article on day trading and what is needed to be a successful day trader.

Most people think of big money, and a great life style when referring to successful day traders.  Becoming free of your boss, and losing the 9 to 5 job has its perks. The best feeling a day trader has is the instant gratification one gets from consistently being profitable.  All these things are true.  You can change your life for the better.  You don’t have to work long hours in a job you hate.  Day trading is by far the only way you can be independent from anywhere in the world.   But not everyone can succeed in day trading. More often than not traders without experience jump into day trading without understanding exactly what to do.  You wouldn’t fly a plane without first learning the important steps needed to fly a plane.  The result would be a crash and burn.

Professional day traders guard their trading secrets.  Remember that big money needs the little guy to take from.  Most aspiring day traders start their journey by joining a chat room, or following advice in forums posted by unsuccessful traders. Since no College degree exists to learn how to day trader, you must educate yourself on the art of day trading the right way.  Books and DVD’s offer insight and theory but fall short when it comes to real life experiences.   Only by learning side by side with a professional the actual methods the insiders use, will you have the ability compete on a level playing field.  Otherwise it’s like taking candy from a baby, and you are the baby.

If you are a beginner trader or an experienced trader, DayTradeToWin is now offering a private mentorship program designed to teach you the actual methods used by professional day trades to beat the market. This is a complete program offering you one on one with the trader and founder, John Paul as he shows you and teaches you the missing links of trading.  The Classes are held multiple times a week during the trading day. The program has been extremely successful with traders. “It’s the A-ha moment that I love to hear from traders”, says John Paul, founder of DayTradeToWin.

Most traders have the basic information on trading, but a complete package from A- Z is a necessity to success.  Most trades don’t see the entire picture when trading.  There is a road map that each trade needs to follow. These precise techniques are taught, and will change the way you look at the markets forever. The 6 week program consists of everything you need to become a self-sufficient day trader.  The Atlas Line is also included with the program which is a propriety trading tool only available at DayTradeToWin.  More information on the mentorship trading program can be found at www.daytradetowin.com.

The 6 week program includes the following:

If you would like more information about this exciting new program please contact John Paul and  daytradetowin by email at support@daytradetowin.com or toll free at 888-607-0008

Disclaimer: Day Trading in futures is extremely risky and involves substantial risk of loss. Therefore you should consider carefully whether such trading is adequate for you. Trade only with risk capital-funds you can afford to lose.

- About the Author: John Paul is founder of daytradetowin.com and has been providing educational trading techniques using price action to successfully day trade the emini sp and other financial markets. Article Source