E-mini S&P 500 Trading

I just made a blog post at Sinibaldi Analytics website that might interest you...

In today's chart challenge we investigate recent price action and the trading of the e-mini S&P 500 futures for October 1, 2013. This is an important lesson on how traders can use the elliott wave principle to forecast price movements, identify chart patterns and key levels of interest where one may be inclined, given their own trade plan, to take a position.

Check it out

E-mini S&P 500 Trading


Best of Trading

Using Intraday Charts to Plot a Course for Gold

On April 16 I tweeted, " IMO, Gold 60 min chart looks like a B wave from HOD implying another move up may be in store. Prints above 1393.8 bolster my ST conviction."

When I mentioned this in real time what I was doing at the time was building my larger degree wave counts. As you will see, the Elliott Wave Principle allows me to set expectation for further price development. Let's take a look at the process.

As you know, corrective patterns burn time and tend to have overlapping waves. If the advance off the lows is to be labeled as a corrective advance, subsequent price action needs to meet the rules and guidelines of elliott wave but also the characteristics of wave personality should be met.

The B wave, as it turns out is an interesting development due to the fact that:

1. The pullback associated with w.b of w. (b) retraced .786 of w.a and unfolded in a 3-3-5 pattern ... a dead giveaway, according to the rules and guidelines of a flat correction. If this was true then prices would fall in five waves from the w.b crest to complete w.c of the larger degree w.(b) and prints below the origin of w.a would invalidate my interpretation.

2. You'll notice that w.(b) was also a deep correction suggesting that the larger advance that began from 1321.5 would also unfold as a larger flat. If so, counting a five wave advance from w.(b) low would complete the pattern and set the stage for either of three events:

• a full retracement to new lows
• a more complex correction would develop
• prices would continue to advance proving my analysis wrong

Moving forward these are my expectations of what I am looking for. Should the market move in a manner contrary to my analysis then odds are that I am wrong.

I've placed reverse Fibonacci extensions on the chart which reflect levels that are of interest to me. While not labeled, price has already reached a point where w.(c) = w.(a) ... the most common relationship. Thus, the limits to hold onto this interpretation would lie below 1447.8.

I hope you found this lesson helpful. Let's leave it there for now. We'll pick up this lesson over the next few days to see how things turned out.


Best of Trading

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blogsite.   

======================================================================

Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or securities related to this article. 

Continental Resources : Earnings

Continental Resources Reports 55 Percent Production Growth And 46 Percent EBITDAX Growth In Third Quarter Of 2012

Read more about Q3 from the Company's website.

A screen shot of the weekly chart shown above was printed out on 10/26/2012 where a trendline break and  a thrusting bar to the downside. Earnings was set to be released on 11/7/2012. 

Fast forward and we see that price tested the under-side of the trend line and was rejected. Today, we should see the market reaction to earnings. While I have not yet applied elliott labels. Downside fib extension clustering,  agreement with the .618 fibo as well as chart support make this a key area that I will be focusing upon as I apply the Elliott Wave Principle to the charts.  

Look for a follow up post on my findings but by all means, don't wait for me. Learn by doing.

Best of Trading

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blogsite.   

======================================================================

Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or securities related to this article.

An Initial Look into Facebook

Like a marriage, sometimes it sours! If ever there was a perfect analogy, Facebook would be it. Since it's botched IPO, the marriage between investors, analysts and Facebook stock has soured. 

The stock has been beaten... taken out to the woodshed and spanked. Not even Rocky could with stand this kind of beat down YET FB posted earnings that Wall Street (those who pummeled the issue)loved and now WS makes a peace offering by pushing the stock up +30% since the week ending 10/19/2012. 

How It May End

While I will not attempt to label this chart until a clear pattern has ended, we can count on one rule of the elliott wave principle to guide us. If the decline from 5/18/2012 is impulsive... wave overlap can't occur before reaching the termination of a five wave sequence to the downside. Therefore, the key level is $25.52. Should price print above this level, then the decline from $45 to $17.55 is in three waves. 

Should this event not occur, then odds are that today's earnings excitement will be met with further selling that leads to further loss of market cap.  OUCH!!!

Best of Trading

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blogsite.   

======================================================================

Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or securities related to this article. 

Bed Bath & Beyond

Volume Scans Identify Potential Winners / Losers

Stock scanners are nothing new to most of us yet many investors don't know how to effectively use them. 

On the the basic tenants of the Elliott Wave Principle, is wave personality.  One criteria that you should become familiar with is "volume signatures" that are associated with both impulsive and corrective structures. 

Using Volume Scans

When applying the wave principle, I like to run volume scans using three sets of criteria:

1) Daily Volume Greater than 50% - I use this scan to identify stocks that may exhibit bullish/bearish 1st waves. 

2) Daily Volume Greater than 200% -  I use this scan to identify stocks that may exhibit bullish/bearish 3rd waves. 

3) Weekly Volume Greater than 50% - I use this scan to monitor institutional support or lack thereof for stocks. 

Volume Scan - 9/18/2012

Bed Bath & Beyond Inc. (NASDAQ: BBBY) is a chain of domestic merchandise retail stores. The stock showed up in a scan for stocks showing daily volume greater than 200%.

Accordingly, I'm looking for 3rd wave price action.  

On August 19, 2012, Bed Bath and Beyond Inc. reported earnings of 98 cents per share for the period ended Aug. 25. That fell short of the $1.03 per share that analysts surveyed by FactSet expected.

Shares of Bed Bath and Beyond dropped sharply in premarket trading on Thursday, August 20, 2012 as the housewares company's second-quarter earnings disappointed and it provided a weak third-quarter forecast.

As you can see from the chart that the handwriting was already on the wall as the corrective phase from 6/26/2012 to 9/17/2012 appears to be complete. The high volume signature on 9/18/2012 had this stock on my watch list as a candidate that should exhibit further downside pressure. 

At the weekly chart level, the decline from 6/29/2012 began after what appears to be an ending diagonal which typically warns of a very swift reversal. That's exactly what transpired. 

As of the time of this post, price action appears to exhibit the personality of a third wave which is being confirmed by the acceleration of price to the downside. If my assessment and use of volume signatures is correct, price should fall well below $58.77. 

Reading the Chart

Should the wave pattern prove to be only a corrective three waves, then  I'm looking for a move to $54.54 with much greater potential to the downside should a five wave decline play out.

In conclusion, I hope that readers can see how I use volume scans to identify possible trades. before the larger move occurs. 

Best of Trading  

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blog site.   

======================================================================

Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or securities related to this article.     

FED Hope of Easing Sparks False Rally in Gold

Just about a month ago I provided my personal assessment of gold. Elliott Wave Live: Is There Gold Still In Those Hills?

The above chart is the interpretation along with recent price action. As I stated within the previous post, "Prints above 1642.4 negate the interpretation."

A False Rally?

While my interpretation was proven incorrect, the concept of a triangular formation was not. Here's why...

At the daily chart level, I have adjusted my wave count. Readers should be able to identify the sideways movement within the chart. If you are following the rules and guidelines set forth by the Elliott Wave Principle, there is no way to label this pattern as impulsive.   Therefore, IMO, the best wave interpretation to date is an A-B-C correction with a triangle w.b circle that needs to prove itself to me by not exceeding 1707.8.


Further Evidence

Both the CBOE Gold Index and Gold Miners charts above have a shaded region that at the time of this post also exhibit possible corrective flat patterns. That would imply another move up above the June 2012 peaks. 

In conclusion, I'm not buying into this move regardless of what the FED does. I'm a possible buyer at lower levels as the larger degree pattern requires further downside as shown here. 

I hope you found this article helpful.

Best of Trading

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blog site.   

======================================================================
Fair Disclosure Notice: I do not have a position in any of the aforementioned futures markets or  securities related to this article. 

Silver Tongue Chart : Update

Silver is popping today and as I mentioned a few days ago, the metals had my full attention due to the fact that the FED minutes might indicate further QE. The following link Elliott Wave Live: Silver Tongue Chart  provided my initial comments on Silver.

The above chart shows that I was looking for an up, down sequence to complete a w.C=w.A move to 23.47. That didn't happen. However, that doesn't mean that my count is invalidated. The count invalidates on a print above the w.(1) low of 31.222 due to the fact that in motive waves, w.(4) never moves beyond the end of w.(1).  Yet, other clues suggest this interpretation is wrong. Here's why.....

• Applying time factors diminishes the probability of this count as the length of time consumed by w.(4) is much longer than w.(2). W.(2) is 8 bars long while w.(4) has reached 41 bars and is still incomplete. 

• From a proportional view, w.(4) is much larger.  

So what are the other scenarios? Are we in full bull mode or is this a counter trend move that will be fully retraced?

The alternate that I offered in my initial post has been applied to the weekly chart level as it's possible that the alternate scenario will play out and if so, price will make new lows. The fact of the matter is that it doesn't really matter if this market is in full bull mode because I'm looking to buy this market anyway and the location of my entry as well as my stop placement is what matters.

Once this advance ends the next move down will tell all. Should it be in three waves, I'm a buyer against the lows. If the decline is in five waves, then I'm a buyer at lower levels.

As always, I'll continue to monitor this chart and provide updates so that you can learn how I'm applying Elliott Wave Principle.

Best of Trading

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 

Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 

A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blog site.   

Chinese Data Mask Depth of Slowdown? An Investigative Look

The following article http://nyti.ms/MsM5gb  appeared in the New York Times on June 22,2012. It described the possibility that Chinese economic data could be masking the depth of deepening slowdown. 


While all the academics and investment banks continue their debate, I thought I'd take an investigative look at the Shanghai Composite, Crude Oil, Copper and Coal.

I'd like to provide my analysis in an attempt to illustrate the value of the Elliott Wave Principle. Please form your own conclusions about the potential direction of each market. 

Shanghai Composite

I've been working this count for the Shanghai Composite since August 2011. To date nothing has changed as I'm anticipating the market will test 2028.  

Copper

Crude Oil

Coal

Best of Trading

======================================================================

ElliottwaveLive is not an investment advisory service or broker dealer. None of its contributors are registered investment advisors, licensed stock brokers or CTA's. The author may hold short term and long term positions in the futures, stocks and ETF's discussed herein. The author may also trade around those positions which may be in direct conflict with your positions. Complete trade disclosures of the contributor’s holdings are posted at www.elliottwavelive.blogspot.com. See Trader Disclosure. 


Trade at your own risk. The blog site, Newsletter and all other information, material and content accessible from this Site (collectively, the "Content")  provided herein provides the context for market analysis with respect to a market's, a security or a commodity's general position utilizing the Elliott Wave Principle. The Content contained herein are the opinion and general comments of the author and is based upon information that Mr. Sinibaldi considers reliable but neither ElliottWaveLive nor he warrants it's completeness or accuracy and it should not be relied upon as such. Mr. Sinibaldi or ElliottWaveLive (collectively, referred to as “EWL”) are not under any obligation to update or correct any content provided on this website. Any statements and or opinions are subject to change without notice. The content and comments contained herein neither purports nor intends to be, specific trading advice. It has been prepared without regard to any particular person's investment objectives, financial situation and particular needs. Information should not be considered as an offer or enticement to buy, sell or trade. 


A more and comprehensive Risk Disclaimer and Disclosure Statements is available within the left margin of this blog site.  

Chart of the Day: Using Elliott Wave in Real Time

A recent call illustrates the benefits of using the Elliott Wave Principle to manage trades. Watch this video as I go over the trade plan, the trade set up, and real time application of elliott wave.



Best of Trading

Heard On The Street : Panic and Chaos

ATTENTION: New readers and loyal subscribers....

...Imagine the chaos and panic that may hit world markets --

 then decide how you'll protect your money on Monday...

Traders,

The past week has certainly been challenging to say the least and after the S&P downgraded U.S. debt, any glimmer of hope that traders had at Friday's close may evaporate.

What if the market is unable to catch a bid come Monday morning? Watching the market free fall without a plan to protect yourself won't be fun. After all, most portfolios haven't recovered since 2007 and the losses could be much greater this time around.

Since my July 17, 2011 call , I’ve been warning readers that the end of the bear market counter-trend rally was coming. In fact, my 2007-2011 analogy of the emini S&P demonstrated the fractal nature of the market, how the pattern would progress and the targets associated with the call. In fact, I've sent out multiple updates on Twitter and through my Monday- Wednesday-Friday blog posts keeping you abreast of the markets. 

I'm guessing that subscribers like you either protected yourself from the market's recent carnage or were already prepared to discuss it with your investment advisor and take advantage of it as a result of my forecasts ...

... but if my forecast didn't raise your eyebrows because you don't realize the benefits of Elliott Wave Analysis I can only hope that the events of this past week will change your mind.

Thursday’s 512 point Dow and 60 point S&P loss was just part the beginning, not the end. And if you are a bull, the losses you’ve taken so far could get much, much worse. 

What if you had know in advance, like my readers, that my target level for the S&P was 1166? What if you had that number in your pocket since the July 30, 2011 call and that the level was briefly surpassed on 8/4/2011 before staging a minor reversal.

It’s not too late for you to realize the educational benefits that I provide and the power of the Elliott Wave Principle. Sitting on your hands and waiting for the Central Banks around the world to come up with another ingenious plan is the worst move you could make.

Introducing Signal Watch RT  ® -- a premium service -- providing insightful, real - time intraday elliott wave analysis

There's one request that I've heard from readers again and again and that's more live, hands - on real-time wave analysis. Now if that sounds like something you might want to hear more about, Signal Watch RT ®, may be the solution you're looking for. You'll know what the market is likely to do and when it is likely to do it.

Next month, watch for a complete list of features and benefits and pricing but today I want to thank you personally for joining our community of  Elliott Wave Live readers. Roll up your sleeves, lock the door behind you, watch the video below NOW, then peruse my achieves (lower bottom right fold) and join my blog if you agree that my work is insightful.

Best of Trading,

Mike Sinibaldi 

The Market Pulse

The Bull / Bear Debate Continues

Introduction:

Earlier today I posted a special video addition of Heard On The Street that updated the current status of the 2007-2011 analogy and my expectation for the progress of the pattern. If you haven't watched that video, I recommend that you do so because this update expands upon the content provided and breaks down the intraday wave count from a bearish view. One without the other will not make much sense. You can listen to the call here.

The Bearish Case:

Here, the bearish interpretation at the daily chart level, has me looking for continued selling pressure followed by a three wave advance to complete w.E. A bounce may intervene but the larger trend shall remain down.



At the intraday chart level, this chart depicts the anticipated progress of the pattern (please click on the video link to obtain for further commentary).

The Bullish Case:

In my opinion, two bullish interpretations hang by a tread and one or both may be eliminated within the next few days, leaving no bullish counts. 

At the daily chart level, the running triangle is still viable. Today, the market gaped down but gaps are not usually found in second waves, they're found in third waves. Also, according to the rules and guidelines of the Elliott Wave Principle, w.2 can't exceed the origin of w.1.  A break of 1291.25 negates the viewpoint that w. 5 was underway.  Only a break of 1252.25, the w.c low would finally extinguish this view. 

The second pattern is the running flat. Flaws already exist in this interpretation. If you recall, w.4 overlapped w.1 but not on a closing basis. A small degree of leeway was granted as the DOW and NASDAQ did not confirm the same structure. That was then. Prints below 1291.25 negate this interpretation.

Let's see what unfolds tomorrow.

Best of Trading



Heard On The Street: $ES-F #Copper #Soybeans $EUR-USD

INTRODUCTION and ANNOUNCEMENTS:

Today the world finds itself at a crossroad of immense proportions. Possible European Sovereign Default and the U.S. Debt Ceiling /consequences of a possible downgrade remain atop of one's "Wall of Worry" list. Huge changes are coming in the near future whether we're ready for them or not. Many investors cling to the false hope that the economic storm is over and that their battered portfolios will recover from a decade of lost returns. As they will find out, it may be only just beginning.

Don't worry. The sky is not falling and the world is not coming to an end. In fact, the future has never looked brighter for traders and investors who take the initiative to "batten down the hatches" and position themselves properly in the market for the coming economic hurricane.

On December 20, 2010, I published my first edition of Global Gains where I released my market calls for 2011 with respect to the U.S, Asian and European major indices, Currencies, Metals and Energy. Whether you are a new subscriber or an existing follower, you may want to compare the market position as of  7/15/2011 for each market .... then compare it to my forecasts that were made over a half year in advance. Just click on the Global Gains link above. Every post on this site is dated and time stamped so you know the posts are authentic and NOT after-the-fact. As you will see, most of those calls are outright scarey while others invariably missed the mark. That's just the nature of long term forecasting.  

I'm not reviewing this information to impress you but to impress upon you the value of the Elliott Wave Principle. Secondly, it's nearly time to update my forecasts for the remainder of the year and I think that readers will find similar value in my forecasts. I'm contemplating presenting my forecast in a webinar format near the end of August.  Stay tuned for details!

Lastly, I launched Elliott Wave Live on July 2010 as a free service, consisting of analysis and commentary on the US, Europe and Asia-Pacific markets, commodities, currency pairs, stocks and ETF's using the Elliott Wave Principle, Fibonacci Ratio Analysis and Market Timing strategies. My primary focus has focused upon the E-mini S&P. My insight has been provided primarily through my blog site, video recordings and my Twitter account.

Shortly in the near future, I will be adding another level of service... a premium service, that provides more timely intraday analysis, charts and a greater in depth look at the markets. While I have not finalized all the details and cost of the subscription service, I will offer a free trial where you can kick the tires and slam doors to determine whether this service is right for you.  All will be explained in a short video presentation at a date to be determined.

THE MARKETS:

In this weeks edition of Heard On The Street I'll be covering the Emini SP, Soybeans, Copper and EUR-USD.

Best of Trading

How to Use an Alternate Count : Part II

Yesterday I received a DM from a Twitter follower. His concern was that Bernanke's might announce QE3 in his speech and cause the market to rally as in the QE2 announcement. After a brief conversation, I turned my attention to following a market call that I made and then I thought..... there's a great lesson unfolding that illustrates what I had just said in private hours ago. I hope he the saw the post.

This is Part II , that covers the market action since we last spoke. If you missed Part I, click here.

This is the last chart in Part I of the hypothetical trade. At the time there were several warning signs that developed that cause me concern and stops were moved up to 1289 guaranteeing a minimum  3.25 profit per contract if the stop is hit. (see Part I for details).

The market continued to rally in a choppy manner to 1294.75. If a trader was managing the stop as suggested ... the stop should have been 1291.25 at this point.

Here are the final subdivisions for w.iv circle where the wave pattern unfolded as a double zig-zag rather than a simple ABC that was called for in the trade plan. By adopting an alternate count we were able to remain in this trade. The pattern terminated  at 1294.75 just below where w.(C) of the second zig zag = w.(A) at 1295.75.

The trade was stopped out at 1291.25 for a profit of 5.25 per contract. If a trader wasn't using the Elliott Wave Principle,working an alternate count, and managing stops.... look what followed! That's why trading what is happening now and what you see is a must for successful trading. The Market provided all the clues to successfully manage this trade all we had to do is watch. 

I hope you found this information helpful and best of trading.