My entry short was 1.4150 and the euro$ is now trading at 1.4080. Lets get the stop to entry and sit a while. The old low is at 1.4027.
We now have a free bet .
Have a great trading day.
Bob Prechter thinks so. Check this out from Yahoo:
“The big question is whether the rally is over,” Prechter says, suggesting “countertrend moves can be tricky” to predict. But the veteran market watcher is “quite sure the next wave down is going to be larger than what we’ve already experienced,” and take major averages well below their March 2009 lows.
Yes, the late 2007-early 2009 market debacle was just a warm-up to what Prechter believes will be the bear market’s main attraction. In this regard, he says the current cycle will echo past post-bubble periods such as America in the 1930s and England in the 1720s, after the bursting of the South Sea bubble.
The 2000 market peak market a “major trend change” for the market from a very long-term cycle perspective, and the downside is going to continue to be painful well into the next decade, Prechter says. “The extreme overvaluation, the manic buying and bubbles in the late 1990s [and] mid-2000s are for the history books – they’re very large,” he says. “The bear market is going to have balance that out with some sort of significant retrenchment.”"”
Within this wave 1 down , the euro $ is charting an w5 of this w1. Within w5 of w1 there is a subwave of 5 waves and my analysis says that there is a w5 of a w5 of 1 of c to come . This is quite a mouthful i know.
I am waiting confirmation to short the euro$ and will get that with any luck at 800 am GMT.
Have a great trading morning.
Good morning,
It will be a difficult morning for equity traders. Wall Street fell off a cliff Friday night. The Asian session predictably fell Sunday night, but not by as much as had been feared. In the meantime the Dow has put in a spectacular recovery rally, and is now being called up 75 points. The Euro and the Sterling rates against the Dollar are pointing to Dollar weakness, which correlation wise often means stock index strength, so at this juncture in the morning it is anyone’s guess how bad the open will be for stocks.
If we go by the falls in Asia, which have already fallen heavily over the last week, then the falls should be contained to within 1% or less. Right now the DAX is being called down almost 1.5% by us.
So far my prediction for a 10% correction is well under way, and I am not surprised by the 5% fall last week. I still think we will see lower prices in the first quarter of 2010.
Dr David Paul currently posts on his own blog: http://www.traderdavy.blogspot.com/
He will now post his articles on the WWT blog too
Happy trading
Tom
Coming off set on BBC today, I bumped into Clem Chambers, the exuberant CEO from ADVFN. He was terribly upset with the Obama administration and didn’t have much good to say about the Conservatives and their support of the plan to curb trading investment activities of major financial institutions. It was good to hear his views. I wish I had the mans brain for facts and figures. If you like trading, you should read his book The Armageddon Trade. It is very good to read.
More to the point, he told me that if the measures suggested by the Obama administration was set to go ahead, the cost of money would rise exponentially. The rings true with another person who I like to listen to: The Market Matrix man. Steve, the architect of the MM, told me years ago that interest rates would rise through the roof in the years to come. He also told me Gold would make its way towards $2500 and oil would get well past $100 again.
Interesting times to live in.
Have a nice weekend. We had two trades today. David tempted fate by buying Sterling Dollar, but decided to bail out after an incredibly poor retails sales report. My DAX short faired a lot better, but I unfortunately made the decision to take my money and run(leaving for the BBC), before the position really got going. Such is life, but it was still a good week, making 2.3% on the portfolio in its first week.
I will be the first to say that my thought patterns evolve predominately around money, making money, devising plans for making money, trading money, planning trades to make money etc.
I think you get my point.
This afternoon, as I was relaxing after trading, I was reading a book on the eye (iridology) and its supposed ability to detect illness in humans. It was also claimed that it is a map of our soul, and having had a scan of my eyes, it was detected that my journey involved opening up and sharing the love.
It sounded like a good lesson. Show some love, Tom. Don’t focus all your energy on trading. Don’t be so one-dimensional. Open yourself up to others, and show them you love them.
Meanwhile, down on the street level, I could hear a kid scream at the top of its lungs. I didn’t think much of it. It is afternoon time, and kids and parents make their way home from school.
Then I heard a very loud male shout “no!” I thought to myself what kind of a man would need to raise his voice to such a level in order to get the attention and respect from a child? And although I was curious, I was too damn tired to care, and I kept on reading.
The Flower in area 45 symbolises a man who is unable to…”NO!” I got no further on that sentence when I once again heard the man from the street shout at the top of his lungs.
This time I rose from the bed with the words “what the fuck is going on down there”. I saw a man, wearing dark sun glasses, carrying two school bags, and with one child in his hand, and another child 10 feet behind him.
The child lagging behind was dragging his coat along the pavement, and I instinctively thought to myself that his sunglass wearing father/carer is not going to like that. The man turned around, and briskly walked back to the boy, and smacked him in the face.
I stood paralysed and watched the man walk back to the first child, while listening to the other boy, who must have been aged 10 or so, cry his heart out. Moments later, the father came back and grabbed the boy by the arm and walked down the street.
I could hear them shout at each other, even as they disappeared out of my sight. I stood silently for a moment and thought about what kind of love the child was receiving at home. I wonder if he wakes up in the morning, full of joy and happy to be alive. I wonder what brought the father to hit a defenceless boy, in the middle of the street in London. What kind of love did he receive when he grew up?
It made me think. Lame as it sounds, love can change the world. My old boss, a playboy like none other, changed his life from one day to the next, when he became a father. Instead of showing me pictures of conquests, he showed me pictures of his youngest son in various drooling poses. My friend tells me that kids are the best leveller in the world. When you are up, they will bring you down to earth, and when you are down in the sewer, they will hail you on firm ground.
That is what love did for these two hard-boiled trading pros. So why am I writing this? You can be a good trader, and show love. You can be an excellent trader and show love. But who are you, if you stand in the street and hit a child? Maybe area 39 in my eye is coming to life, and I am no longer solely focused on myself anymore. It is long overdue!!!
This post is more of a test post than an attempt to post something of importance.
I have taken a small LONG Euro Dollar position because my analysis says that 1.4086 is an important point of support.
On the last swing from 1.5150 down to 142.50, the market rebounded 38%.
Now the market has hit a 38% extension at 1.4080. So I went long. Nothing big of course. The trend is down, but I suspect that I could get 50 points out of it.
I will now attempt to post the chart as well 
It is Sunday the 17th January 2010.
The new WhichWayToday website is finally finished.
Now we are testing all is working.
