Definitive Guide to Trading
by Joseph Russo, Elliott Wave Technology | September 15, 2008
PrintThe Ultimate in Tactical Price Forecasting – Bar None
When it comes to strategically trading broad market equity indices profitably, there is simply no match for Elliott Wave Technology’s Near Term Outlook. We respectfully challenge any short-term advisory or software generated algorithms to improve upon or better optimize the efficiency of tactical trading dynamics we dispatch daily for the Dow, S&P, or NDX.
Undeniable Bear Market in Full Swing
In the last days of August, following an impressive 1000-point 10% rally off the July low, the Dow was making every attempt to best its August-11 high of 11867.
Trade # 1 on the above chart illustrates our last bullish trade-trigger citing an 11785 upside target prior to the bear reasserting itself with a rapid 750-point decline. As extracted from our archives, the exit target for that trade was within 5-points of the 11790 print-high that registered on September 2.
In the nine months following the all-time historic print high of 14198 in October of 2007, the Dow has done nothing but languish, providing explosive choppy rallies while recording a steady stream lower-lows and lower-highs with its larger footprints.
As is typical with most equity bears, declines are swift in nature, followed by smaller fractal bursts of higher-highs, and higher-lows. This type of price action tends to lure in buyers, promote the appearance of orderly declines, and sets forth the seductive promise of an eventual long-term bottom.
A snapshot of Long-Term Secular Trends
Below, we take a long-term secular look at four of the most essential sectors in the financial sphere. In general-order of importance, they are sovereign nations’:
- Currency Strength and/or the quality/quantity of money supply
- Commodity Prices (In this case, represented by Gold)
- Long-Term Interest Rates, or the cost of funds
- And finally broad based Equities or Stock Indices (represented below by the S&P 500)
Overall, secular trends although (potentially disastrous in the case of the US dollar) nominally impressive, do not paint a long-term picture of confidence or stability. Considering the prospects no choice remains but to trade these markets as efficiently as humanly possible.
Human Efficiency
The six trades in our first lead-chart above, chronologically orders, a 16-day summary of phenomenal outcomes to short-term strategy-specific trade guidance extracted from the archives of our Near Term Outlook and accompanying Evening Posts.
Our lead chart simply summarizes “when and where” those trades elected, however the NTO charts along with the members-only “essentials file” lays out the strategy and tactics behind the “how and why” those trades elected.
Over the past three years, we have perfected the art of dispatching tactical trade set-ups and market forecasting into a consistent, impartial, and immensely profitable endeavor for those who take the required time, patience, and discipline to embrace it.
The express focus of Elliott Wave Technology’s charting and forecasting service is to help traders anticipate price direction and amplitude of broad market indices over the short, intermediate, and long-term.
We deliver this unique blend of proprietary charting protocol daily, with the express intent to convey timely and profitable information. Our daily reports impart strategy-specific guidance, which strives to forecast, monitor, and calibrate market impact relative to a multitude of signals that are in direct alignment with eight distinct trading strategies set forth in the members NTO essentials file.
Regardless of one’s level of experience, users must allow sufficient time to become acquainted with the authors charting protocol, strategies, and tactical narratives prior to entering positions or developing modified discretionary trading strategies of their own.
If you trade in today’s increasingly uncertain and volatile markets, you need a reliable and consistent edge you can count on day in and day out. If you want the very best, there is no better short-term advisory than the Near Term Outlook.
Copyright © 2008 Joseph Russo
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Joseph Russo | Chief Editor & Technical Analyst, Elliott Wave Technology | Email | Website
The opinions of FSU contributors do not necessarily reflect those of Financial Sense.
