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Prudent Behavior During a Time of Ridiculous Predictions

In a recent podcast, Equity Management Academy trader and advisor, Patrick MontesDeOca said, “Since the highs in gold back in July, we have seen a surge of tremendous propaganda pertaining to the gold and silver markets. Almost every gold bug out there has come out with extreme videos” anticipating “ridiculously” high gold and silver prices. He said, “A great deal of fear has been pumped into the markets” and “People seem to have gotten onto the fear bandwagon instead of relying on real infor...

Aug 25, 2016
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Surprising News From The Dow Chart

Do not let yourself be tainted with a barren skepticism.
Louis Pasteur

The market has resisted all attempts to correct. We know why it is not crashing; this has to do with mass psychology, but what’s preventing it from letting out a significant dose of steam.  The table below might hold the answer.   We looked at all 30 components of the Dow monthly timelines utilising our indicators, and the results were quite surprising, to say the least.  On the monthly charts, each bar represents one month...

Aug 25, 2016
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Is It Time to Buy This Major Drug Manufacturer?

A couple of weeks ago, I revealed an opportunity to pick up one of the world’s largest drug manufacturers Bristol-Myers Squibb due to a recent 20% stock price plunge from a failed final stage lung cancer treatment trial.

The time to accumulate BMY stock is finally getting close as volume seems to remain high and a valid support level of $58 seems to be where other value investors are coming into pick up BMY on the cheap.

It’s been two weeks and nothing fundamental about the company has chang...

Aug 25, 2016
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Key Chart Level to Watch in Wheat Futures

Following last week's post about corn futures, we continue our focus on grains by highlighting a support area to watch in wheat futures. Although there is not yet enough evidence for us to conclude that wheat has made a durable low this month, we believe there is the potential for a bounce or a larger rally to start. At the very least, traders should be cautious with any existing short positions.

Wheat has declined since 2010 while giving some recognition to the boundaries and harmonics of th...

Aug 25, 2016
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FX Technical Analysis - EUR/USD

The EUR/USD has been in a short term bull move from the lows at 1.1074 in the beginning of August. This is mainly due to a weakness in the US Dollar. This currency pair has hit its secondary bull targets at around the 1.1358 level or the 161.8% of the first leg of the bull move. This zone is also the 61.8% of the 1.1637 - 1.0909 move to the downside. Massive supply is being found and price has tested it twice already.

Right now bulls are recharging at previous lows and the 50% of the last leg...

Aug 24, 2016
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