Despite this recent rally off the lows established last week, I think the market sentiment is low and still negative. Watching the charts this week, there was strong buying, but the bounce seems to have lost steam.
Though the weekly charts of stocks I am watching shows an up signal, the daily charts show otherwise, losing momentum near the end of the week….today. We will see next week whether the uptrend holds or if this is just a head fake, before the market swings lower. I got a feeling the pain is not over as the conviction wanes today.
The year 2013 was quite a busy year, so of course when I am on the move so much and time is limited it affects when I can pick up a book, sit down and read. In year 2012, I finished roughly 21 books but 2013 I went through 15 finance related books.
Note: You will see other books in the list, but I didn’t put a number beside them because it wasn’t finance related.
The market has been on a mega uptrend since October 2011 and that long term trend has not been broken. Who knows then the rug will be pulled from under the markets feet.
From the looks of it (the technical charts) , S&P will probably be pushed to 1800, the Nasdaq will be pushed to 4000 and the TSX (Toronto Stock Exchange) will make a final push to 13250. Those seem to be the major resistance areas. Nobody knows when the markets is going take a dump.
In late 2011, I decided to get serious about learning about macro, micro economics and as well to improve drastically my trading skills which includes finding trading opportunities, entry and exits. Above all the one thing I wanted to improve the most was my “trader psychology”. By knowing how to think like a trader properly, I should be able to improve all aspects of my trading process which will show up in my improved win/loss ratio and overall returns.
August of this year the U.S stock markets are experiencing some of lowest volumes ever since 2006, now we all know what happened the following years after 2006. Oct.2007 – April.2009…a major stock market crash that took all index to new lows.
All you have to do is look at a 5 year chart. If the Federal Reserve doesn’t continue Quantitative Easing in September, the markets are bound to take a dive, this is roughly 1 month away…can the markets hang on for a whole month at the current levels or push higher.
This bull market has been going since October 2011 with a slight break in Dec.2011 and June 2012, while unemployment rises and the latest earnings season not fairing well with lowered analyst earnings projections.
I am in the camp that the U.S. stock market is being heavily manipulated. You have the U.S Fed chairman saying that they are holding off on QE 3, but they are lying and in the background they are injecting more printed money to prop up the stock market.
This 1 hour audio book is definitely worth a listen by anyone wishing to achieve in the endeavor of trading or investing. If can get past 2 years without blowing your account, you are on your way.
However, to really be a consistent trader, investor it would realistically take 4-5 years at which time all the money you lost is just the “tuition fee”.
