To paraphrase the ancient Chinese curse, we are living in interesting times. The stock market continues to push higher, albeit on reduced trading volume, which should at the very least suggest that caution regarding the strength of the trend is warranted. While Sterling, the Euro and the Japanese Yen continue to defy gravity, metals are consolidating in a trading range, which is not ideal for Kevin's short positions in the whole basket.
In his March 2012 Market Roundup, Kevin discussed an unfolding long-term technical pattern warning of a potential multi-year stock market top. A year on, this pattern is getting close to completion. Whist the S&P500 remains in an ascending channel and the FTSE has broken through the important 6100 barrier, both markets have significant resistance levels overhead.
If this pattern plays out as expected, the stock market will post a long-term top before the middle of the year and reverse into a severe multi-year bear market. You can view Kevin's explanation of this pattern in this short clip from the March 2012 Market Roundup here:
Staying with the S&P500, can a charting technique developed by Alan Andrews over fifty years ago, combined with classic Fibonacci levels, provide us with confirmation of this analysis?
In November of last year, Kevin delivered a presentation at the London Money Show entitled 'Is It Really Possible To Outperform The Stock Market' in which he described one of the most successful, yet most underutilised, stock trading strategies of all time, namely Sector Rotation using External Relative Strength Analysis.
We have since received several questions regarding the strategy so Kevin has recorded a reprise of the presentation, which has just been uploaded to the Traders & Investors Club website.
If you are very short of time, Kevin describes a version of this strategy that will require you to invest all of 10 minutes once a month.
By the way, the answer to the question is........yes.
Have You Considered A Trading Buddy?
As we are all painfully aware, trading can be a lonely business in more ways than one. Not only do we usually work alone but how can we fail but notice how the eyes of our family and friends start to glaze over whenever we start talking about what we love to do.
Where can we turn?
A great solution is to hook up with a Trading Buddy, somebody who is as passionate about the markets as you are and who may have a similar level of trading experience, a similar time horizon and trade similar instruments.
The benefits of working with a Trading Buddy cannot be over-emphasised. Not only will it dissipate that feeling of isolation that we all experience from time to time but it will also coonect you with a like-minded colleague with whom you can discuss trading strategies and potential trades.
When you commit yourself to be accountable to another trader, you will discover that your trading will become more disciplined, which will invariably lead to much better results. Furthermore, you will learn new strategies and see the market from a new perspective as well as helping a fellow trader up his/her game.
The Lonely Hearts section of the Traders & Investors Club website is now up and running and it is very straightforward to connect with a Trading Buddy.
Once you have registered on the site, which is free of charge, you will be invited to create a personal profile, which tells your fellow members a little about you and your trading interests. One of the discretionary options is to check the Advertise For A Trading Buddy box. Your profile will then be available to your fellow members to view on the Lonely Hearts page and will allow them to get in touch with you via the contact form. Your email address will never be visible and the Lonely Hearts section will only be available to Traders & Investors Club members.
Once you have connected with a potential Trading Buddy, it is completely up to you how much information you wish to share with them and how you both decide to take your professional relationship forward.
You may also browse the profiles of fellow members who have already expressed their interest in connecting with a Trading Buddy.
You can amend your profile at any time by clicking on the My Account link at the top of the home page.
Ask The Trader
If you have any question whatsoever about trading or investing then why not connect with our panel of experienced traders via the Ask The Trader section of the site? Between them, they have over seventy years of market experience and at least one of them will respond to you within 24 hours.
Recently, there was a very interesting thread started by one of our members who is deliberating whether or not she should put her professional day-trading activities on hold in order to accept a contract offering her a guaranteed stream of income. This thread should be mandatory reading for anybody considering giving up a salary in order to become a full-time trader. You can view the thread here:
Fri, 25/01/2013 - 10:42
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