Wednesday, April 2, 2014

The Midweek Update - Who's the Leader? $DJIA $SPX $NDX

***** Depends on which index you like to follow, the patterns on the three indexes differ in ways. Long time listeners know that the charts usually have much in common yet, here today I see a possible strong breakout off the high on the $DJIA, a flat top on the $SPX and a possible stall on the $NDX . It's unusual to have such differences. Since April Fool's Day is over,  perhaps it's due to the unknown,  namely the coming of the 1st quarter reports. World jitters seem to have subsided but no matter which course the markets take, one of these charts foretell what is to come and will show its leadership.

Happy Trading, Living and Dancing
Anni

Weekly Update $DJIA $SPX $NDX

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Thursday, March 27, 2014

The Outlook Update - The Good News Is: Putin, Ukraine, EU Energy Concerns

*****I'm an optimist except where Putin is concerned, but I've  been saying that for years, so now what? Listen to me or listen to others the idea that peace comes through disarmament creates an illusion that has been driven into us for decades by the very people who would use their arms to attack.

Think of it this way. To say that by cutting off your arms you will be able to defend your home, is not only foolish it's dangerous. To say that by extending nothing but appeasement to the thieves, rapists and murderers of your community will not keep you safe. The EU needs to learn to defend itself against those who wish to kidnap its interest to ransom because that is exactly what Putin will do with the gas and oil pipelines it means to control.  He's had them in his sight since the disgrace of losing not only the Cold War but equally importantly the pipeline war to Reagan. Again, history helps here to understand what is to come. The pipelines wars have not stopped, only got cloaked in peaceful agreements née appeasements; but make no mistake control of the pipelines from the middle east will make all the difference to the EU and the US. Putin knows this and has had them his grand plan to restore Russia's glory and will have them in total control sooner now that the EU and USA does nothing about Ukraine.

While the world forgets and our governments decide to ignore the Budapest Agreement of 1994  Putin watches with interest how the West once more can be taken advantage of just like with the Yalta (Crimea) and Potsdam Conferences of  1945 where the same three powers agreed on restoration of European countries. History knows how that agreement was honored by the Russians with millions persecuted and dead on the Central and Eastern side of Europe.

Those who think this has nothing to do with the markets and trading I can only ask to think ahead. The future of the USA and how it can conduct business is very much in play with these events. How the US government handles Putin's aggression will not only foretell our future strength, but also the future markets. Our ability to produce and sell will be effected. Consider that the EU may become less and less able to protect itself from Eastern aggression. Will we be able to step up the will to honor our agreements? Bigger question still, will we be able to protect ourselves?  I'm not for fighting wars but I'm definitely in the camp of preventing them from strength.

There is no good news.  I've been waiting to write this article for quite some time, but my optimism prevented my intuition to speak. We are now beginning to experience what it is to be in a weak position. What I see now is becoming possible only because of the mentality that all things "good" mean that it has to come from "peace at all costs". In other words, the disarmament symbol hijacked to become a peace symbol  is costing us.  It's costing us not only our strength but also our freedoms, but most of all our belief in our ability to be the beacon of light of which Reagan spoke in his farewell address.  Will Poland be next after the Ukraine, once again?

 I'll still remain an optimist but (hopefully) not a fool.

Happy Trading, Living and Dancing
Anni


 The Weekly Outlook Update  26Mar14 -   $DJIA $SPX $NDX


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Sunday, March 23, 2014

The Weekly Outlook - Grin and Bear It vs. Bare It ~ $DJIA $SPX $NDX

*****So we wonder how it will come to end. The bull market, not the world. Truth is that the bull market never really ends it just takes a pause from time to time and changes direction once in a while. Just study the charts since the beginning of it all and you'll see that most of the time we are the bull and less of the time a bear.

That fact aside, we talk as if when the bull market changes to a bear, the world will come to an end. A change in direction, when not planned for, is usually unpleasant for us when we are merrily traveling on a taken path toward a goal. But change is inevitable whether (or weather) we like it or not. Causes can be many but direction is not. It's a down direction on the charts when the bear awakens and comes out to hunt.

The real question is how we as traders and investors approach the change. Investors tend to grin and bear it traders on the other hand most likely grin and bare it. The difference being a passive stance vs an aggressive one.

To an investor or long time-frame trader a temporary downtrend change means to hold on, keep smiling and bear the change. They know that it is only for a short time and for the long run they can use the opportunity to add to a bull position; hence, they can grin and bear it.

To a day-trader or a swing-trader, aka short-term trader,  the opportunity is to change direction with the market, flip the trade and take advantage of the weakness; hence, they grin and bare it. Bare can mean the baring of teeth as animals do when taking an aggressive stance which short term traders have to do in order to take advantage of market changes. Sharpening ones horns or baring ones teeth mean the same thing to traders only the direction is different.

A grin can be a broad smile, like on the cat that ate the canary, or it can be a grimace, like on a skull. When the bear market hits, whether you'll  "grin and bear-it" or smile and work through the pain, or "grin and bare-it", grimace and bare those pearly whites in aggression,  knowing how you will approach change will reveal and define your style and your approach to the markets.  Just remember that the bull never really goes out to pasture, but it's the nature of bears to hibernate.

Happy Trading, Living and Dancing
Anni


The Weekly Outlook - $DJIA $SPX $NDX


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