Over the course of the last few weeks, I have spoken to four different hedge fund managers. All four of the managers I have spoken to in the last two weeks made note of valuations being critical in the year ahead. With the Dow moving above 18,000 for the first time in history and with […]
Read More
A MidasWave.com member asked me a question recently that I think many people have, “What do I have to do to consistently make money on Wall Street?” The short and simple answer is to educate yourself. We live in the age of information and people can access any information (good information at a price), from […]
Read More
Over the last 25 years, there have been five instances where West Texas Intermediate Crude entered the New Year in oversold territory as measured by the 10-month RSI, the monthly slow stochastic readings or both. The five instances occurred in January 1994, 1998, 1999, 2002 and 2009. In four of the five instances where crude […]
Read More
Well, the market decided to keep up with the Christmas tradition and not take a big dive before year end, but only just. This thing was headed south in a big hurry until The Federal Reserve made an announcement about not rushing to raise interest rates. Here’s why I think this market is soon to […]
Read More
Central Banks Save The Day- Again What Is The Santa Claus Rally? Here is how Wikipedia defines a A Santa Claus rally, “It is a rise in stock prices in the month of December, generally seen over the final week of trading prior to the new year. The rally is generally attributed to anticipation of […]
Read More
The bulls have been in control of the market since mid-October. After the selloff from mid-September, the S&P moved higher for seven weeks in a row. Oil was falling giving consumers more expendable income, China cut their interest rates and everything was glorious on Wall Street as the calendar rolled over to December—one of the […]
Read More
Did Santa come too soon? This time of year usually brings on a decent rally (as Wall Street traders want their bonuses) but, as I’d recently commentated, the rally off the October lows had come too far too fast and a correction was on the cards. So what next…?
Read More
Risk vs. Reward Last week I wrote an article titled Trading Math and received quite a bit of positive response from it. The article discussed the importance of keeping your losses small and letting your winners run. This week, I want to follow up with a brief introduction to risk and reward in capital markets. […]
Read More
Sunday evening as the Asian markets opened for Monday trading, there was an announcement that went unnoticed by most investors. The Japanese government adjusted their third-quarter GDP report to show that their economy shrank 1.9% rather than the originally reported 1.6%. Why does this matter to U.S. investors?
Read More
It’s getting close to that time of year when people want stock market predictions for the year ahead, and many analysts oblige. The trouble is that’s hard to do when one looks to the market itself to tell you what’s going on, but there is a way we can make some intelligent guesses…
Read More
How To Limit Your Losses There is an old maxim on Wall Street that says successful traders limit their losses and let their winners run. Simple enough, right? But knowing how to actually do that consistently is not easy. Why? Because it is counter-intuitive in nature and goes against what comes “natural” for most people.
Read More
The 30-year US Treasury Bond has been on a great bullish run over the course of the last year. The price of bonds has gone from $127.50 to a high of $146.02 while the yields have fallen from a high of 3.96% to a low of 2.89%. While bond holders have been the beneficiaries, for […]
Read More
Energy Prices Are In A Free-Fall For the past few months, global energy prices (mainly, crude oil and gasoline) have imploded, and have each entered their own secular bear markets. The most common definition of a bear market occurs when a stock (or market) falls at least 20% below a recent high. Crude oil and […]
Read More
