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How To Make A Full-Time Income Trading Less Than Part Time

Big Dogs Exposed

Sound familiar? You have spent years surfing the 'Net, and studying books and charts in search of commodity trading rules, a currency trading strategy, stock market successful trading strategies, or information on how to use commitments of traders data. All you really want is the 'Holy Grail' of entry techniques. You usually end up adding one indicator on top of another, switching from one guru to the next, until you are so confused and unsure of your entry system that you are unable to make entry decisions and stay organized. You get so distracted and frustrated that you quit watching the markets all together!

Shows you how FAST you can make money when the BIG DOGS make their move - by shamelessly copying this winning group . Even I am STILL surprised by how much power they have over ALL markets - not just commodities futures, currencies, and stocks.G

Newsletter - July 2003

This is an exact copy of the Newsletter e-mail-out.

Greetings! You are receiving this Newsletter because you either subscribed to it at my site, or bought one of my products. It is e-mailed only to those participants who opted in voluntarily, and is not sent to unwilling partners. Your e-mail address will never be shared with a third party under any circumstances. You are safe with me. I don’t condone spam, nor do I promote it. And, that’s a promise from me to you. You have my personal word on it.

This Newsletter is issued on an if-as-and-when basis – at least once a quarter, but not more often than once a month.

This Newsletter is dedicated to traders around the world who are interested in trading commodities futures, currencies (FX and futures), markets and/or stocks. Obviously, I can’t cover all four bases in any one single edition of this Newsletter due to space limitations, and also out of respect for your time.

Please don’t click away or delete too soon, or you’ll miss my currency trading strategy and stock market successful trading strategies coming up shortly. Also, you will find my commodity, currency and stock picks of the month later on in this Newsletter.

You should view this Newsletter while you are connected to the Internet, so that you can see the imbedded charts and graphics.

Past Editions

Commodity Trading Rules

Currency Trading Strategy

Stock Market Investing Basics

Stock Market Successful Trading Strategies

For those of you who missed the past issues of this Newsletter, you can read them online by going to: Back Issues

Those issues dealt primarily with commodity trading rules, a currency trading strategy, stock market investing basics, and stock market successful trading strategies.

If your trading is all foam and no beer, then be sure to read my Newsletter on a regular basis. And, please send me suggestions for things you want to hear about.

Chart Patterns

These patterns are offered in support of my currency trading strategy but they are equally applicable to all markets.

Currency Trading Strategy 1: Symmetrical Triangle

This consolidation pattern has a continuation bias that nonetheless needs to be confirmed by a downside breakout. It is a sideways consolidation, as oversold pressures are eased. Price will break in the direction of the trend thus far – down in this case.

Price has been forced into a coil between the converging lines. If price breaks through one of these lines before it covers two-thirds of the distance to the apex of the triangle, price moves sharply, like a compressed spring uncoiling. In this instance, the triangle has occurred in a downtrend, and it has no potency, or upward thrust. Price then simply continues its trek down, and out through the apex of the triangle. You can’t see that here, but price did swoon downwards as it exited the apex of the triangle.

Currency Trading Strategy 2: Head and Shoulders

This pattern (called a bearish distribution top, in this case), and 50% retracement, are the too most popular and powerful reversal signals in technical analysis. The head-and-shoulders pattern reflects gradual distribution of a tradable, and a progressive waning of buying pressure.

In the chart below, you can plainly see how the head-and-shoulder price swing structures evolved over a period of nine hours. Although you can’t see it in the chart, volume behaved as you might expect with such a pattern – heavier into the left shoulder than the head, and heavier into the right side of the head, indicative of selling pressure

With such a formation, volume tends to dry up as price rises, and picks up as price falls – combinations that suggest waning buying and increasing selling pressures.

Of course, the result is inevitable. Price has nowhere to go but – DOWN!

See if you can see the head and shoulders pattern in the above chart. It’s there – formed just before the triangle. Where you see this pattern, followed immediately by a symmetrical triangle in a downtrend, you can be sure price will tumble.

These are just two of the many useful insights to trading you will find at: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

Words of Wisdom

In the classic book, Where are the Customers’ Yachts?, “The firm made money and the broker made money. Two out of three ain’t bad.” Jack Singer of Global Securities Corp. adds, “Making a living, let alone an honest living, is tough for a financial planner.”

Financial planners’ hands are tied for the most part because, despite the desire on the part of honest brokers to give the best available advice (like low-cost and tax-efficient bonds and ETFs), they’re licensed only to sell high cost, tax-inefficient pooled products, such as mutual funds or segregated funds. Universal life falls in the same category. Qualifying to sell less desirable products is less onerous than obtaining a drivers license. Sad, but true.

Mutual fund categories are confusing, and the industry likes it that way. Why? Because the less you understand, the more help you need – from the “gurus” – the bad guys doing bad business.

You would succeed in every facet of your financial life (trading and investments) if you would just take the time from your hurried life to base your decisions on true and unbiased information and knowledge. Just remember when you are taking advice from hucksters or seers, “Nobody knows what you think they do.” Caveat emptor. Make sure the financial advisor you are working with charges you a fee. That ensures that you are dealing with somebody who isn’t tied to selling you high cost, tax-inefficient pooled products to feather his own nest.

If you are paying more than one percent MER (management expense ratio) for your mutual fund, give or take, you’re paying too much. ETFs (Exchange Traded Funds) are a better alternative.

Ask your financial planner what MER your fund carries. You might just be surprised by his answer. Most people either don’t know to ask, or are afraid to. An MER of 2.5% on a $500,000 portfolio means, in plain English, that $12,500 gets taken right off the top every year – regardless of whether or not your fund is making any money or not.

In other words, it should be at least gaining by that much to compensate you for the annual expense. But, sadly, thanks to the NASWRECK, a lot of funds have fallen behind. Your financial planner isn’t suffering though. He gets his trailer fee regardless or how well or poorly your fund is doing. Great business to be in if you don’t care about the client.

You will find more on investing and trading strategies at: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

Quote of the Month

The old Wall Street warrior Gerald Loeb uttered his famous dictum on equity analysts: “In a bear market, you don’t want 'em; in a bull market, you don’t need 'em.”

Profile of a Successful Trader

I recently asked the President of a successful trading house to list the characteristics of his most successful traders. He came up with two. You might be surprised by his answers:

A messy trading work space

A person who is into solo sports, not team play

Boy, do I feel better now. I sure fit the bill in those two categories to a T. I guess I’ll leave my desk just the way it is.

While we’re on the topic of what makes for a successful trader, let’s talk about commitment and passion for a minute – the big “C” and “P” words of the trading world. Sunny Harris, of Harvard Graphics fame, decided to go into trading after she cashed in her chips, and walked away with a tidy nest egg. She wanted to seize control of her own financial destiny, and not leave it in the hands of the so-called experts. She didn’t make her first trade until she had invested 18 hours a day for 18 months of solid study in the markets to see what worked, and what didn’t.

She didn’t read anything. She just got used to the rhythm of each tradable. She likens it to reading sheet music. There is an ebb and flow to it. How’s that for dedication. She has since gone on to become a leading figure in the trading world, and even has family members involved in the business with her. Just goes to show it can be done, with a lot of blood sweat and tears. Like Wayne Gretzky said, “The more I practice, the luckier I get.” Or, to put it another way, thanks to Jeff Mallett (who helped found Yahoo), “The harder I work, the luckier I get.”

And, while we’re on the topic of what makes for a successful trader, let’s talk a bit about failure and fear for a minute. Wallenda, the high-wire aerialist, fell to his death on his last walk because, according to his wife, that was the first time he had ever considered falling. The analogy here, of course, is to be careful what you focus on while you are trading. Concentrate on success and winning, and forget about being afraid and failing. Your mind will play tricks on you, if you are not careful. Be careful what you think about!

A lot of newbie traders, and even experienced ones, in search of commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies, fail in this business because they just play at it, and don’t fully commit. You must pass a mental barrier, a personal Rubicon. The landscape approaching this barrier – the personal point of no return – differs from the landscape beyond it.

You will find the straight bill of goods on trading in my book by clicking here: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

The Forex: The Hottest Market

This section is all about my own personal currency trading strategy as it relates to the Forex market.

“I've recently converted from futures to the FX markets. Needless to say, that was the right move to consistent profitability. Your book and e-books were the main reasons for switching. Many thanks for sharing your insight on this wonderful market. It's so much easier to trade than the E-mini contracts.” (just one of my many happy customers)

And, another customer wrote in, “Can you tell me why people, and someone like myself, have been 'stuck' with trading futures and options for years? I am still puzzled.”

And yet another … “I have been reading up and going on courses for the last two years. The last course I went on was an options course, which lasted for two days. It was only about options and trading stocks, but I still think your book is better.”

And on it goes … “Just to inform you last Friday I started with $38,640 and until yesterday I made $ 9900. I can't say thanks enough for your teaching and support.”

“I LOVE YOUR BOOK … I have studied it repeatedly, and now I want to jump in on the Forex markets.”

“It is interesting how may times your program is accurate, and that when it isn’t it is calling a change of guard.” (a long-time stock trader and fund manager)

Enough already.

Important Announcement from FX Solutions

My currency trading strategy includes recommending the absolute best market maker brokers – at least those that pass my scrutiny, and that of traders whose opinions I respect and value. One such broker is FX Solutions.

FX Solutions are proud to announce their upgraded version of Global Trading System 2.2. The Global Trading System is proprietary software developed in-house by the FX Solutions IT department. Since the creation of G.T.S., their IT department has been constantly working on the enhancement of their superior online trading software. The new Global Trading System 2.2 features:

Worldwide Access to G.T.S. anywhere, anytime.
Optimized connection speed ensures faster response time.
Multiple Rate Views, including two customizable views with trading functionality.
Streaming Tick Chart displays historical tick data when changed.
Charting Tab now includes preset data ranges for each chart interval.
Ability to change currency pair within a chart.
Additional preset data ranges to existing change of chart interval within a chart.
Additional four new preset chart schemes and two sample chart schemes that can be used as a template for customizing your personal chart scheme.
Additional chart options, which allow you to customize and save your chart scheme preferences.

If you are an existing customer, you can upgrade to the new version. If you are a new customer, you can open a demo account, and try it out. If you have any questions or problems, please feel free to e-mail either thomas@fxsol.com or myself. You can reach their Web site by clicking here: currency trading strategy number two

At FX Solutions, if you are self-trading a standard account where each lot has a value of 100,000 base currency, you can trade up to 100 lots at a time equaling 10,000,000.00 without any fill/execution problems. To quote Stefan Fudge, “You will never have a need to trade more than one currency (euro) with that kind of liquidity! 100 lots at once is big-time trading.”

Thinking about the Forex and a currency trading strategy to trade it with? The trading world is abuzz with talk about the Forex, and my currency trading strategy is certainly becoming the talk of the town. The Forex does $1.5 trillion per day, which is 30 times the size of all U.S. equity markets – 50 times larger than the NYSE alone! The $30 billion-per-day futures market doesn’t even come close. 95% of all currency trading is conducted over the Forex. By comparison, the currency futures market is shrinking, and represents only one percent of the size of the cash market.

The Forex is the largest financial market and is always liquid 24X7. It is not subject to engineering by any one entity. And, the average daily range for the four major pairs is US$1,040 per lot. Compare that to the other markets, and you’ll soon discover why the Forex is attracting so much attention these days.

Most professional traders catch only three-to-four really great trades a week, if that! Not so with the Forex – especially with my currency trading strategy. Here, the timeframe is more like a day. And, a professional doesn’t have to worry about 7,800 stocks, or 72 commodities, and all the underlying rules that accompany those tradables. With the Forex, a trader only has to think about the four major currency pairs – and pure technical analysis. The average daily range of 104 pips (read, US$1,040 per lot) for all four pairs far surpasses that of any other market. It also has a much longer “length of line” (intraday swings), which offers more “swing-trading” opportunities. Lots of action for both novice and professional alike. Salad days are here at the Forex!

The two Forex market maker brokers I personally recommend, after a lot of input from other traders, research, and soul searching, offer superior Internet dealing software, fast and efficient execution, instant online trading, and charts – all for FREE. The efficiency of trading with either of these two market makers means that you no longer have to pay commissions on your futures or stock trades – and Forex trading is commission-FREE as always. Their FREE online software improves your trading performance by giving you the edge in execution, market information, and account management. Combine either platform with my currency trading strategy, and you’ve got a winner.

To preview the trading software and register for a free demo account, go to currency trading strategy number one for offering number one, and currency trading strategy number two for offering number two. They’re both equally as good, but I’ll let you be the judge as to which one you like the best. When you open a funded account at either of these two locations, please mention my name (Peter R. Bain) in the application, and I’ll support you all the way to the bank.

When you let me know that you have opened your funded account, you will immediately get access to my own personal Forex trading examples on a daily basis, and receive a “free” copy of my e-book on my own personal currency trading strategy style for the Forex called “Before You Press Enter” – just for the asking. Let me know when your account is open, and they’re both yours for FREE. One heckuva deal. See you at the top.

With a demo account at either location, you can trade “virtual” money, until you feel comfortable with the process.

Don’t get me wrong. I like the other markets too. But, this is the new kid on the block, and it’s hot. If you like futures, you’ll LOVE the Forex! It will really get your trading mojo going. What’s not to like? “EVERYBODY’S TRADING IT” is reason enough for you to trade it too.

I recently spoke with a long-time stock broker who confided in me that he wished he had discovered the Forex a lot sooner. He just recently saw the light and made the switch. It’s never too late.

I get tons of kudos about my currency trading strategy approach on a regular basis, but here are just some of the more recent ones:

Stefan Fudge, Alabama: “There is more information on your personal Forex trading examples Web site than in all the market/technical analysis books in my home library combined.

Anybody who whines for real time calls is just looking for an easy way out, as in somebody to do all the thinking for them! You have a great thing going "as is." I wouldn't change a thing.

I may change my second account (FXCM) over to FX Solutions too. The FXCM trade station looks kind of bush league compared to FX Solutions’, and I don't like the 4-pip spread they charge on the Euro either.”

Earle Meadows, Texas: “Peter, you're an amazing person! Thank you so much for your help and consideration, and for your patience with my ‘newness.’ Thanks for being a giving and real person. There's so much to be said for that. I salute you, and look forward to a long and fruitful future working with you as my mentor.”

Fernando D. Duran, California: “Just to let you know, that I received your manual ‘How to trade like a Pro in one hour,’ and I haven't been able to put it down.”

Tony Albertini, Great Britain: “Many thanks. I received your book this morning. What can I say? Entertaining, eloquent, philosophic – not to mention INFORMATIVE – and that was only the index.”

Nick Marolt, Australia: “Just a quiet thank you for all your efforts, which I must say are considerable, and which have given me some confidence again at a time when I felt like I was caught in ‘No Man’s Land.’ I had not really lost much over the years, but then again I had not really made much either. I just felt that all the stuff I had read before in the past was just not cutting the mustard.

If nothing else, I just wanted to say that you have given me an insight into things that have provided SO MUCH more knowledge than I had before.

All too often you buy a book, or read something, and in reality there are some hints, but never really a real revelation of HOW TO USE information, knowledge, or techniques adequately.

If I get nothing else out of this, it will be that you have truly provided insight in how to use a few powerful techniques that I can actually understand the reasoning behind. You have pushed me once again to add more and more knowledge to my arsenal in this game. Its funny how I knew about a number of key areas to look at, but I was never in a position to have somebody show me how to use them properly and effectively. For that I thank you very much indeed.”

Robert Veale, Ontario: “This note is just ‘another’ thank you for posting, on your examples page, the numbers that you use in your program and the results. It's great to be able to confirm that I'm on the right track.”

Andrew Hong, Singapore: “I have received your book. It has great hidden ideas and suggestions that I had not learned in the stock market. I have only traded stocks for the past few years. Now, I have the opportunity learn about FX through www.TradingSmarts.com”

Dan Schachtel, New Jersey: “Your way is the sharpest, most precise, and simplest way to trade, and the pivots are very accurate.”

Melody Cooper, Texas: “Thank you Peter for your wonderful book ‘One More Zero.’ My husband ordered it from you last week at the recommendation of American Securities.”

Tom Barraclough, Massachusetts: “I think this is an excellent program.”

Sound familiar? Coming directly from an advisor formerly employed by a big bank brokerage: “Countless times I’ve placed market orders on stocks only to see our own traders cross that stock to themselves, and immediately trade it back into the market at a nickel or dime better, which they pocket.”

On the Forex, you get instantaneous executions. You avoid specialists’ discretion, and trade with confidentiality. There is no such thing as pre-trade information leakage. There is also no uncertainty of obtaining fills that comes with routing to a manual auction market, as can occur in the stock world.

On one stock exchange, you can’t even get big orders executed quickly, or completely, because of rules requiring specialists to search several seconds for the best prices.

All of this disappears on the Forex – when you trade at one of the brokers I recommend above, and use my currency trading strategy.

Canadian loonie trivia: According to Nobel prize economic laureate Robert Mundrell, the loonie could sink to 50 cents U.S. in a decade, if Canada doesn’t deal with its debt, tax and fiscal policies. Each time the loonie recovers, it simply slips lower the next time – a constant game of one step forward, two steps back. He figures Canada should peg its dollar to 60 to 65 cents U.S., and take the plunge. Mr. Mundrell has been called the father of the Euro for laying the groundwork for Europe’s vast economic union.

Outlook for the Canadian dollar: Demand for Canadian dollars may fall as investors buy the U.S. currency to purchase stocks. Canadian economic growth is slowing. Look for lower interest rates in the coming months. This, together with an improved U.S. economy, could weaken the loonie.

The currency's 18 percent surge this year has been fuelled in part by international investors' purchase of Canadian fixed-income securities, which yield more than the debt of other countries, including the U.S., France, Germany, and Japan.

The Role of foreign central banks: Central banks, especially those in Asia, have been snapping up U.S. assets (mostly treasuries) in an attempt to shield their countries’ exports from a plunging U.S. dollar. The dollar would fall precipitously were it not for this intervention, due to the country’s trade deficit. In order to sustain its currency, it must attract so many billions of dollars per day in foreign investment. The foreign central banks’ currency trading strategy is to create a demand for the currency, and hence support it, by buying up treasuries.

Traders beware "end-of-quarter positioning": I was asked by some of my readership what happened last Friday, June 27, with all the wide-range bars on the 15-min chart. That was a tough day to trade, even for seasoned pros. Lots of whip-sawing. Lots of stops got taken out. Trading patterns were dominated by end-of-quarter positioning. A good day to stand clear. Your currency trading strategy should include being prepared for the next end-of-quarter, and the one after that, and the one after that, etc. Mark those dates on your calendar. Trading is as much about being organized and prepared, as it is about being good at it.

So much for the "experts" and their currency trading strategy: Some analysts were expecting the euro to probe the psychological bulwark of $1.20 the week of June 16th. Boy, did they get that wrong. Ah, but views sell. And, people pay for it

As you know, the euro peaked May 27th at 1.1932, and this top was confirmed June 16th. So, with the top in place, if you believe in technical analysis and the 50% retracement rule, the euro “could” swoon to 1.1245 before it finishes its slide – unless, of course, it settles for a one-third retracement. Or, it could go even further down, and put in a two-thirds retracement. TA works folks! Much better than funnymentals.

One of the major driving forces on currencies is interest rate differentials between countries. Your currency trading strategy should include the news. In other markets, news is noise. But, not so with the Forex. In early June, the Canadian loonie surged above US74 cents (June 5th to be exact) to a six-year high, in the wake of a big European interest rate cut, weak U.S. data and Canada’s higher debt yield. The euro advanced 2% against the greenback. The dollar also fell against the yen and the Swiss franc.

Cutting interest rates lowers returns on a region’s fixed-income investments. The recent lowering of interest rates by the Federal Reserve widened the Canadian advantage in short-term returns. However, Canadian economic growth is slowing. Look for lower interest rates in the coming months. This will erode the yield advantage over the U.S., diminish its appeal, and lessen deposits in Canadian dollars.

Yield gap matters. June 10th, the euro fell more against the yen than against the U.S. dollar, because the yield gap between the euro- and yen-denominated debt securities was wider than that between euro- and U.S. dollar-denominated.

Another thing to watch out for is a country’s job gains/losses. Growth in unemployment does not auger well for a country’s currency, and that can influence where interest rates are headed.
A further consideration relates to gains in U.S. stocks, which add to the demand for the greenback.

And then there are the factory and manufacturing indexes, which are measures of economic health.

And, there's inflation to take into account. Canada's inflation rate dropped to an eight-month low in May, fuelling speculation that the central bank will not raise rates again this year.

To conclude, make sure your currency trading strategy includes my system, and pays attention to all of these factors. News events, as they relate to currencies, should be high on your list of things to pay attention to.

Hot Commodities, Currencies, Stocks

Hot Commodities

According to my interpretation of the latest commitments of traders data, the following commodities futures represent good trading opportunities to the long side: coffee, cotton, orange juice and the S&P 500. Please adhere to the 11 commodity trading rules outlined in the May edition of this Newsletter. You can read it by going to: commodity trading rules

MACD is a good indicator to help you trade those commodities. You can read all about it at: commodity trading rules

My book was originally inspired by commodities futures, and the profit potential they stood for. You too can get your very own copy at: commodity trading rules

Hot Currencies

The four major pairs (EUR/USD, USD/JPY, GBP/USD, USD/CHF) are always hot – each and every day of the week. That never changes from session to session. That’s the nice thing about trading currencies on the Forex. You only have to worry about four entities, rather than 7,800 stocks, or 72 commodities. Of course, you can get the scoop at: currency trading strategy

Hot Tech Stocks

Price Chart Courtesy www.BigCharts.com

EMC Corp. (EMC/NYSE): EMC Corp. (EMC/NYSE): The world’s leading supplier of enterprise-wide information storage and retrieval technologies.

Micromuse Inc. (MUSE/NASDAQ): Micromuse Inc. (MUSE/NASDAQ): Makes management software that enhances the productivity of existing networks.

Adobe Systems Inc. (ADBE/NASDAQ): Adobe Systems Inc. (ADBE/NASDAQ): One of the best-managed software companies globally. Makes software that enables users to display, print and send electronic documents.

Analog Devices Inc. (ADI/NYSE): Analog Devices Inc. (ADI/NYSE): Makes analog and digital signal processing semiconductors, which translate images, sounds and measures into digital signals.

Trading Technique: Use Bollinger Bands, MACD, RSI and the 50-day Moving Average at BigCharts.com to help take you in and out of trades.

Buy when price closes above its 50-day Moving Average line, and sell when it closes below its 50-day Moving Average.

MACD is bullish when it is above its 0 neutral line. It is bearish when it is below the line. MACD, the faster line, flashes a buy signal when it crosses above its signal line, the slower line. A sell signal occurs when it falls below its signal line.

When price crosses over the lower Bollinger Band, as well as having a low relative strength (RSI), it’s slated to rebound. When it breaks through its upper Bollinger Band, and has a strong relative strength, it’s slated to decline.

Bollinger Bands and RSI work well together, and give earlier entry and exit points than do the 50-day Moving Average and MACD, when used together – but perhaps with more risk. Use Bollinger Bands and RSI to take you in or out of a trade, and then let the other two indicators confirm your decision.

Just one of the many trading tips you will find at: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

Cautionary Footnote: Tech stocks appear to be overpriced. Each of the stocks listed above has a good chart pattern – consistent upward movement over a number of months (read, momentum). They are definitely tradable in the short-term. I am not talking about long-term investments here – just trading opportunities. So, be careful. Trade well, and use protective stops at all times.

Tech stocks are at a price/earnings ratio of 39:1 (PE multiple of 39 for the NASDAQ) versus a PE of 19:1 for the broad S&P500. Translation: overvalued. You are paying US$39 up-front for a buck’s worth of earnings.

The Straight Skinny on Buying Call Options

If the CBOE volatility index is below the 200-day and 50-day moving averages (symbol VIX at BigCharts.com), that means that options are relatively cheap. This index measures the volatility being implied by options on the S&P 100 index, which reflects big-name growth and value stocks.

The real issue when buying calls is how you feel about the sector in question – i.e., the sector within which your chosen stock resides. If you have reason to believe that your sector of choice will rally by the third quarter, then buying calls seems like a reasonable thing to do.

I would suggest that you look at at-the-money strikes or, given the present market conditions, strike prices that are just slightly in-the-money. Such options are generally the most liquid, and will provide the best potential for profitability, should the stock move as you thought it would.

My book addresses commodities, currencies, market indexes, stocks – and, of course, options too. Its all waiting for you at: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

Market Commentary: The Good, the Bad, & the Ugly

First, the good news. The new economic stimulus package is good news. It slashes the taxes you pay on dividends. This will attract yield-hungry investors back to the stock market. The volatility of the overall stock market will stabilize due to the higher dividends. This calmness will draw in more money, even from overseas. Lower Interest rates get people buying even more stocks.

Companies may start paying off their taxable bonds with lesser-taxed equities. Corporate America may rush to reduce its debt, resulting in lower costs of borrowing.

However, speaking from a purely technical point-of-view, assuming we are witnessing a bear-market correction, such a correction usually recaptures one-third to two-thirds of the ground lost since the end of the previous bull market. So far, the recovery is very much at the lower end of that range. We are most likely in the midst of a rally in a bear market that has enough legs for further movement upward.

The U.S. economy will definitely be boosted by tax cuts, interest rate cuts, and, of course, a weaker currency. Therefore, it will outperform Canada’s. So, watch out Canada. Uncle Sam is shaking off his hangover, and is about to start his own party again. Remember, his music is always louder than yours.

There’s hope that the Fed’s easing early last week, together with the upbeat June consumer sentiment survey, will invigorate the economy. That would be good news for the equity market, but not so for bonds.

Cautionary Footnote: U.S. executives have been selling their companies’ shares at the fastest pace in 10 months. The pace is somewhat unsettling. Insiders don’t appear to be too enthusiastic about where stocks are going over the next six to 12 months. The escalation in selling parallels a similar rise in selling a year ago, which foretold a market swoon. Ignoring insider selling is somewhat like driving at night without your headlights on. You do so at your own peril.

If there is any part of this Newsletter than you cannot see because of the e-mail program you are using, please view it online at: currency trading strategy and stock market successful trading strategies

Or, please send me an e-mail, and I’ll send you a .pdf version of the Newsletter: prbain@tradingsmarts.com It could be that you are not online while viewing the Newsletter, as we pull down the charts and graphics from our site – to save having to send them out with each e-mail copy of the Newsletter.

If you don’t already have a copy of my now-famous book “How to Trade Like a Pro in One Hour” and associated software, you can get your very own copies for the price of a dinner and a bad movie! All you have to do is click here: commodity trading rules, currency trading strategy, stock market investing basics, and stock market successful trading strategies

The book and program are for traders who trade any market, not just the Forex.

Please feel free to send your inquiries, be they comments, feedback, questions or suggestions, to me at: prbain@tradingsmarts.com

If you have any ideas or suggestions for future articles, they would be most welcome. I especially invite any trading tips, strategies or techniques you may have that you wish to bring forward, and share with others. If I include them in future editions of this Newsletter, you will most certainly get proper credit and recognition. You will also receive a free bonus from me for your time and trouble.

Happy trades to you, and here’s to your health and happiness and good relationships!

Thank you for reading this Newsletter! Have a great day!

Sincerely,

Peter R. Bain
www.tradingsmarts.com

PS: Help! I need 416,242 new subscribers by 6:32 am July 17th. Please feel free to forward this Newsletter on to three (or more) of your business associates, colleagues, family members, friends, neighbors, and relatives, and urge them to subscribe by clicking here and accepting the offer when they click away from the site. Thank you! You are encouraged to do so by sending it along in its entirety, but portions may not be reproduced or disseminated separately, as it is copyright protected. Thank you for acknowledging this!

PPS: I would be more than glad to give a seminar in your area if you could pull together a large enough audience to make it worth my while.

PPPS: If you wish to unsubscribe from this newsletter, please send an e-mail to webmaster@tradingsmarts.com (Brad Du Preez, MCSE)

Disclaimer: I am basically just a good guy doing good business. I’m not here to rip you off. Quite the contrary, I try my absolute darnest to bring you the very best picks and trading strategies, none of which I benefit from personally. I don’t promote or make any goofy promises about short-term predictions or daring speculations. There is a risk to investing and trading, so please use money you have set aside for that purpose, and guard it with your life by using good money management practices and principles, and good trading technique. Please don’t invest or trade money you can ill afford to lose. This is a business. It is not about gambling.

Considering the fact that I don’t know your capabilities, and how well you are going to apply my advice, I am sure you will understand it when I say I can’t be held responsible for your decisions, and subsequent actions, based on the information contained in this Newsletter. However, there is no reason why you shouldn’t benefit by following my comments. The information in this Newsletter has been thoroughly researched, and is sound. It is considered to be accurate to the best of my ability and efforts.

Thank you for acknowledging this, and good trades to you! And, for Heaven sakes, please lead a balanced life, and treat your business associates, colleagues, family members, friends, neighbors, and relatives as you would have them treat you – with courtesy, dignity, respect – and above all else, love. Set a good example for others.

E-mail: prbain@tradingsmarts.com
Web site address: www.tradingsmarts.com

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