The best markets to trade are FTSE 100, options and EUR/USD. In total +2160 pts in the last 13 months. If you bet £1 per point per £1000 in your account (which is what I recommend) you triple your money every year!
We took 200 pts on the FTSE 100 this week and now we are long. The reason is because the latest decline was in five waves and the Top 20 Differential is oversold. Here are two reports explaining why I expected a decline on 4thFebruary and why I am bullish now:
Stocks are going down because investors have lost confidence in the central banks. I said many years ago that this would happen, simply because the Fed or any central bank cannot manipulate the stock market for ever. Central banks can move the market as we know but if their actions last many years and investors don't see any results, they will slowly lose confidence. QE started in 2008, there have been numerous programs and other operations to stimulate the economy and the stock market in the US, Europe, China and Japan, yet we are heading for deflation. That was never the expected result. Naturally people are now worried but it's taken seven years for people to realise it's not working.
So it's not surprising that when Yellen tried to be dovish during her two-day testimony the stock market sold off. The question now is if investors don't trust central banks, who is going to reassure them? I believe that any good news will have a temporary effect on the market which means rallies won't last.
Are you ready to make 153 pts or more per month in 2016?
Our three best performing markets are FTSE 100, Options and EUR/USD
A few weeks later the FTSE 100 started to slide and within three months the UK index was down 16%. Despite the recent bounce the FTSE 100 remains below its peak at 7104 recorded in April and below its 200-day moving average.
More recently, when a sell off occurred in the FTSE 100 in early December I said to my members: don't panic, buy the FTSE 100 for a short term rally. Again I was right, my short term indicators were bullish. Here is the report on 15th December:
I ask the question because I know there are some people out there waiting to join the Better Trader service. You see, if you tried the Better Trader service for a short period of time like a week or a month, you don't know what you are missing. In a month I can't guarantee that we will catch a big move.
I always say the money is made in the big moves. The thing is, catching a big move doesn't happen every week or every month. The last time I predicted a significant rally was on 13th November, see:
If you trade and struggle to make a profit, don't be too disappointed, there is a way out. I have known people who were losing but now they make money consistently. Firstly, you need clear direction and this is provided on the Better Trader Premium website.
Secondly, you need to bet the right amount, not too much, not too little. You need to be disciplined. If I say we go long at that level, it's that level and not higher or lower. Many people quit trading because they don't do exactly as they are told or because they bet too much. If you bet too much, a series of bad trades will wipe out your account.
Look, I make money on EUR/USD, I am up +341 pips since April however, most of the profits were made from April to August. Since August it's losing. Imagine if you started to follow my trades on EUR/USD in August and you bet too much, by now you would be wiped out.
To go far I recommend to bet £1 per £1000 in your account. So if you have £5000 to play with you bet £5, this is based on the trades from Better Trader Premium.
If you don't bet too much and you are disciplined and trade only the most profitable markets you will be fine. The most profitable market are FTSE 100 and options. In total we have made +1295 pts since April (+802 on FTSE 100, +493 on options). If you don't understand options please let me know and I will send you an explanation.
The stock market will probably trade in a tight range until the end of the year, this will provide us with plenty of opportunities to make money short term. There will be some false alerts, and some surprises. There are three important things; anticipation, reaction, adaptation. I can anticipate a move based on my understanding of the market, but I must react quickly if I am wrong in order to adapt to the new environment. These changes are necessary if one is going to achieve long term success in the chaos that lies ahead.
To receive regular analysis and trading signals on the FTSE 100, options, S&P 500, EUR/USD and Gold subscribe to Better Trader Premium
Are movements in the markets just prices or is there more to it?
By Elliott Wave International
Elliott waves don't merely reflect prices plotted over time. Each wave has its own "personality." Watch this video by EWI's Wayne Gorman to learn more about the psychology behind the waves and how it affects your investment decisions.
This article was syndicated by Elliott Wave International and was originally published under the headline (Video, 2:05 min.) The "Personality" of Stock Market Waves. EWI is the world's largest market forecasting firm. Its staff of full-time analysts led by Chartered Market Technician Robert Prechter provides 24-hour-a-day market analysis to institutional and private investors around the world.
As I said at the start of 2015, inflation and growth will drop sharply in coming months, the stock market will plunge. Greece was never the real issue, China was. I predicted the bursting of the Chinese stock market bubble and its consequences on Western economies and stock markets.
It's not the first time I have been spot on on the direction of the stock market and the events that will lead to a bear market. Back in April I made a bearish call LIVE at the UK Investor Show, warning investors of a massive correction during the summer. You can watch the video here:
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