Money : Making sense of so much market data on a given day

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Money : Making sense of so much market data on a given day

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MARKET REVIEW : BULLISH (27.04.2008)

SUMMARY

CRB Index versus Bonds=>bullish
CRB index=>bullish
Bonds=>bearish
Oil=>Bullish
Gold=>bearish
US Dollar=>bullish
DJ Ind.Average=>Bullish
S&P500=>Bullish
NASDAQ=>Bullish
VIX=>bearish

The short-term (1 week) message is bullish. (Major trend is down)

Growth index is gaining momentum



DETAILED

CRB INDEX v.s. BONDS



CRB Index



Bonds





Crude Oil - Brent





Gold (fixing)





US Dollar





NASDAQ



DOWJONES IND.



S&P 500



VIX

 

ADVISES TO INVESTORS OR TRADERS

1. BE CONSISTENT:

Do not be a fundamentalist one week and technician next week. If you are a fundamentalist do not use one ratio on week and next the next week. If you are technician do not use one pattern or indicator one week and the next pattern next week.

2. LEARN WHAT MOST INVESTORS NEVER DO:

You can not make money by reading today's fundamentals in the newspaper. What you read from the textbooks are only one aspect and very known aspect of investing. Technicians can see what the biggest and most informed investors (e.g. institutions) are duing by looking at the trading volume.

Fundamental or technical analysis are not a crsytal ball to the financial independenc. Markets are very complex it is not possible to make proper fundamental forecast by collectioning all the information. Technical analysis provides a simple way in comparision to fundamental analysis. But do not forget that markets are not simple to understand. You can make failures. It is ok to make failures. If you have a system with positive expantancy you can make money even if you are less than 50% of the time right.

3. TRADING IS NOT ABOUT KNOWING, IT IS ABOUT DOING 

Trading is not about knowing it. It is all about doing. All the trades know higher highs, higher lows. And such strategies. But trading is all about doing. Trading is a verb not a noun. "being a good trader is not about making money(paper trading). Making money is about being a good trader(real trading=doing)."[1]

[1] The Kirk Report : http://www.thekirkreport.com/2007/03/learning_how_to.html

ADVISES TO INVESTORS OR TRADERS

1. BE CONSISTENT:

Do not be a fundamentalist one week and technician next week. If you are a fundamentalist do not use one ratio on week and next the next week. If you are technician do not use one pattern or indicator one week and the next pattern next week.

2. LEARN WHAT MOST INVESTORS NEVER DO:

You can not make money by reading today's fundamentals in the newspaper. What you read from the textbooks are only one aspect and very known aspect of investing. Technicians can see what the biggest and most informed investors (e.g. institutions) are duing by looking at the trading volume.

Fundamental or technical analysis are not a crsytal ball to the financial independenc. Markets are very complex it is not possible to make proper fundamental forecast by collectioning all the information. Technical analysis provides a simple way in comparision to fundamental analysis. But do not forget that markets are not simple to understand. You can make failures. It is ok to make failures. If you have a system with positive expantancy you can make money even if you are less than 50% of the time right.

3. TRADING IS NOT ABOUT KNOWING, IT IS ABOUT DOING 

Trading is not about knowing it. It is all about doing. All the trades know higher highs, higher lows. And such strategies. But trading is all about doing. Trading is a verb not a noun. "being a good trader is not about making money(paper trading). Making money is about being a good trader(real trading=doing)."[1]

[1] The Kirk Report : http://www.thekirkreport.com/2007/03/learning_how_to.html

RISK-RETURN RATIO

Take trades if your risk return ratio is high. e.g. greater than 1.

RISK-RETURN RATIO

Take trades if your risk return ratio is high. e.g. greater than 1.