TradingSmarts.com - commodity trading rules and currency trading strategy, with expert advice on successful stock market investment strategies.

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: Market Update - 12/03

This information is provided in support of the TradingSmarts Newsletter, which caters to those traders in search of commodity trading rules, a currency trading strategy, and stock market successful trading strategies. If you haven't yet subscribed, you can do so by going to www.tradingsmarts.com and accepting the invitation when you click away.

Good News for a Change: The U.S. economy is accelerating at a fair clip. On October 30, the Bureau of Economic Analysis reported that the economy grew at a staggering 8.2% annual pace for the 3rd quarter – its strongest growth in almost 20 years, far outstripping annualized growth of about 0.9% in Germany. It's the fastest pace for the economy since the first quarter of 1984, raising the possibility that the Federal Reserve may have to raise interest rates as early as the first half of next year.

China's recent growth is also impressive. For the last three years, the global economy grew only 2% a year... but China's expanded 8% a year, and should grow at that pace for some time yet. How? You got it: exports.

The U.S. economy is definitely moving fast, and its companies are raking in profits unseen in more than three years. The health of corporate America has not been as robust in decades. Economic pre-tax profits for non-financial corporations increased at a 43% annualized pace from last year's third quarter – the fastest pace in 20 years.

The economy produced an 18-year high in housing starts during the month of October. Single-family housing starts in October were the highest on record. Building permits in October surged 5.2% over the September tally, to the highest number since 1984.

Bill Miller's US$9.3-billion Legg Mason Value Trust Fund is the only mutual fund to have outperformed the S&P 500 index in each of the past 12 years. An average of only about 12% of all managers are ever able to beat the S&P 500 each year. Christened "the sultan of stock" by Fortune magazine, Miller believes the bull market began in the latest two quarters, and that the market is still undervalued by 10%, 15% or perhaps even 20%.

With 11 months under its belt, the stock market enters the final month of the year poised to record its first annual gain since 1999. For the year, the Dow is ahead 17% and the Nasdaq is up a blistering 47%.

It's no wonder that people feel so optimistic about the future of equities! The Investors Intelligence Sentiment Index for stocks has been hovering recently at its highest level since 1987, and there are more stocks reflecting this widespread optimism, being above their 30-week moving average, than at any time since 1997.

"What worries me most at present is that even I, a skeptic, can't find any good reason why stock markets around the world would decline significantly," writes Dr.
Doom himself, Marc Faber.

Some Sobering Thoughts: Surging consumer confidence hit a 12-month high in October. Investor optimism, as contrarians are wont to believe, is an ominous sign for the stock market. Investors tend to become extremely confident and hopeful before steep market declines ... and become extremely pessimistic before market rallies.

While business spending continues to accelerate, it should be noted that consumers still account for 70% of the economy. So, let's hope they don't all of a sudden develop a bad case of the uglies.

With the federal deficit swelling towards the $1-trillion mark (the value of all assets in America probably around $50 trillion, according to Warren Buffett), Moody's recently warned the U.S. to clean up its act. Rather, "Improve Finances," reports the Financial Times, or else. It's all well and good to cut taxes to put on a happy face for the world – and spending money in the hands of the world's happiest consumers. But, if the U.S. wants to preserve an AAA rating on its bonds, says Moody's, it will have to raise them again ... or cut spending.

On page C3 of Monday's (November 24/03) Wall Street Journal, it says that,
in the month of October, insiders sold $59 dollars worth of stock for every $1 they bought. Generally, the article says, a level of $20 or more is bearish. And it's been over $20 for six straight months."

While the S&P500 has rallied about 15% since last Thanksgiving (2002), it's also true that the dollar has tumbled about 20% against the euro over the same period. Since this time last year, net-net the dollar's losses have more than erased the S&P's gain. We have more dollars in our pockets, but the dollars don't buy as much as they used to.

The weak dollar has helped support U.S. exports at the expense of making imports more expensive, a recipe for inflation. Fifty cents of every American dollar spent on manufactured items ends up overseas.

We should direct our thanks toward the eastern sky. If it were not for the fact that foreign central banks have become the buyers of last resort for dollar-denominated assets, the greenback would have fallen even more in value versus other currencies than it has, U.S. prices for goods and services would be higher than they are, and U.S. long-term interest rates would be higher than they are.

The sizable U.S. federal deficit is drag on the U.S. dollar. A cheaper dollar can give a boost to bullion prices, as it is considered a hedge against such weakness. Gold is traded in U.S. dollars and, as such, is more affordable to overseas buyers.

Gold has risen 50% since its bottom in 2001. Many gold stocks have doubled. Hmmmmm ...

The week of October 27/03, Sir Templeton said in an interview he thought stocks were too expensive, and that the U.S. was cruising for a bruising with its trade deficit and U.S. federal deficit. He said he anticipated a long bear market in stocks and a serious slump in the economy. Implicitly, he advised investors to hold cash.

And so, in the final analysis, Buffett, Grantham, Soros, Rogers, Templeton – all people who seem to know what they are talking about – must be feeling like bears walking onto a sunny beach in rain coats.

For the first time in his life, Buffett is moving money to foreign currencies. Templeton warns investors to head for the hills. Soros says the whole thing is going to blow up ... and so does his old sidekick Jim Rogers.

Pao mo. Bubble in Chinese. Umbrellas anybody?

Symbiotic Relationship: Asian banks are financing the U.S. current account deficit because it's that very deficit that's helped finance their exports!

Phew! The central bank will continue to fund the borrowing binge just so long as U.S. growth continues to outstrip every other country – except China, of course. Therefore, the U.S. bond market will not implode, and the U.S. dollar will continue its orderly descent.

When it comes to commodity trading rules, a currency trading strategy, or stock market successful trading strategies, you will find a whole lot more in my internationally acclaimed book ...

With a few simple mouse clicks ...

Click here to order now.

"Free" unlimited personal consultation with each purchase

"No-Games, No-Strings" Money Back Guarantee

Over 76% of our customers have been trading four years or more. Almost 24% have been at it for over 20. Even experienced traders know they have more to learn. No matter what market you're in, whether your preference is commodities, currencies, futures, options, stocks, mutual funds, intraday or inter-day, whether you're a beginner who needs a concrete plan or a seasoned trader, or simply looking for information on how to use commitments of traders data, you've come to the right place. Most traders who come to us just want to know how to trade commodities futures, currencies, and stocks against the 'dumb money,' and ...

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

Have a day job; can't watch the markets; want to trade?
Want to see intraday real-time stock charts for free?
Want to learn how to daytrade in 11 easy steps?
Want to trade without paying commissions?
Want to get paid for your stock picks?
Read on ...

Find out what a blind, three-legged dog with a note tied

around its neck could do, even in a market jumping

up and down like a kangaroo on speed ...

Find out how the "Big Dogs" got rich and what

they are hiding from you ...

Find out what only 10% of traders know ...

Stop trading with your eyes closed ...

WARNING:

DO NOT TRADE UNTIL

YOU READ THE NEXT PAGE!