Best of the Week
Most Popular
1.Oil Wars 2016 - US vs Russia vs Saudi Arabia vs Iran - Nadeem_Walayat
2.Crude Oil Price Crash Triggering Global Instability, Trend Forecast 2016 - Nadeem_Walayat
3.Stock Market Crash - Last Week was The 2nd and Final Warning... - Clive_Maund
4.Stock Market Crash Apocalypse or Bull Market Severe Correction? - Nadeem_Walayat
5.TShipping Said to Have Ceased… Is the Worldwide Economy Grinding to a Halt? - Jeff_Berwick
6.Crude Oil Price Crash Catastrophe, Independant Scotland Literally Begging to Rejoin the UK - Nadeem_Walayat
7.Summers: Global Economy Can't Withstand Four 2016 Fed Hikes - Bloomberg
8.Gold And Silver: New World Order: Public Be Damned, Preferably Dead - Michael_Noonan
9.Rigged U.S. Ttreasury Bond Market Double Barreled Hidden Q.E. To Infinity - Jim_Willie_CB
10.Major Stocks Bear Market Awakening - Zeal_LLC
Last 5 days
Gold Price, Mining Stocks Rocket Higher - 5th Feb 16
Crude Oil Price Bottoms and Blues - 5th Feb 16
Gold and Silver: Ripe for a Recovery! China May well Change the Game - 5th Feb 16
How Pension Plans are Responding to Financial Repression - 5th Feb 16
Senior Gold Producer Goldcorp Takes Large Stake in Nevada's Gold Standard Ventures - 5th Feb 16
Tips for Smart Oil and Natural Gas Investing 2016 - 5th Feb 16
Another Corporate Giant Is Leaving the U.S. – What This Means for You - 4th Feb 16
TPP is Economic Warfare, Trade Can Make Everyone Worse Off / Governments are Stupid - 4th Feb 16
Gold and Stock Markets Inflection Points Galore - 4th Feb 16
Putin Cries Dyadya (Uncle), Is Saudi Arabia Listening? - 4th Feb 16
Gold Price Golden Bottom? Video - 4th Feb 16
Look North for Value-Priced Growth in Healthcare Biotech Stocks - 4th Feb 16 - TLSReport
BrExit EU Referendum - Britain's FINAL Chance for Freedom From Emerging European Superstate - 4th Feb 16
HUI Now Confirming Gold Price Move Higher - 4th Feb 16
Crude Oil Price Forecast 2016 As Good As It Gets - 4th Feb 16
Gold and Silver More 'Flight To Safety' Active February - 3rd Feb 16
Raytheon Company: A Defensive Stock for a Defensive Market - 3rd Feb 16
Is Silver Really a Weak Link - 3rd Feb 16
Gold to Beat Stocks 2016? - 3rd Feb 16
David Chamberlain Cameron, Britain's Last Chance for Freedom From Emerging European Super State - 3rd Feb 16
EU UK Draft or Daft Agreement By Donald Tusk to Members of the European Council in Full - 2nd Feb 16
Europe: Why It's Going to Get a Lot Worse Before It Gets Better - 2nd Feb 16
The Next Generational Bust Is Coming, Stock Market 70% Collapse - 2nd Feb 16
The Coming Stock Market Decline May be a Monster - 2nd Feb 16
S&P 500 Has Likely Entered a New Bear Phase - 2nd Feb 16
How and Why To Move Your Assets Offshore Before the Financial Collapse - 2nd Feb 16
Central Bank Created Silver Price Rally - 1st Feb 16
The Fed Is Not Hiking Rates: Risk Assets To Perform - 1st Feb 16
US Dollar and US Treasury Bonds Big Picture - 1st Feb 16
BOJ Negative Interest Rates Central Banking Crime Syndicate's War on Cash for Triggering Panic Consumption - 1st Feb 16
Elites Set to Wipe Out Stock Market Shorts Before Next Downwave... - 1st Feb 16
Stock Market A-B-C Correction Unfolding - 1st Feb 16
Nice week for Gold : It’s All about Sentiment - 31st Jan 16
Silver Price Breaks Higher on Rising Anxiety - 31st Jan 16
Stocks Bear Market Rally Underway - 30th Jan 16
Gold And Silver Current Prices Do Not Matter - 30th Jan 16
Gold Price Potential Upside 2016 - 30th Jan 16
Stock Market Bears Pulverised by BOJ Knock Out Punch, Non Technical Take Video - 30th Jan 16
Lacy Hunt: Inflation and 10-Year US Treasury Yields Headed Lower - 30th Jan 16
The Curious Case of Copper... - 30th Jan 16

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

Global Financial Crisis 2016

Stock Market Investing Profits Map For The Next 6 Months!

Stock-Markets / Investing 2009 Jun 01, 2009 - 01:20 PM GMT

By: Uncommon_Wisdom

Stock-Markets

Diamond Rated - Best Financial Markets Analysis ArticleLarry Edelson writes: Every so often it pays to take a few steps back … look at the charts from a longer-term point of view … and put the markets into perspective.

This is especially true today with so much confusion in the markets … so much misinformation in the news … so many threats to your wealth … and so much background noise and distractions.


But when you step back and look at the big picture, you can clearly see that major trends do NOT change overnight.

In a few minutes, I’ll show you my market roadmaps of the Dow Industrials, the dollar, and gold.

But before I do that, let me give you the conclusions Ive drawn from the latest long-term review I’ve done of my research, economic models, and trading cycles.

First and foremost, the mortgage, debt, and real estate crises in the United States are not over — not by a long shot. Neither is the destruction occurring in commercial real estate … the automobile industry … and small and large businesses alike all over the country.

Second, this also means the Fed will continue to …

arrow black Profits Map For The Next 6 Months!  Pump even more fiat money into the economy like there’s no tomorrow to prevent a financial meltdown

arrow black Profits Map For The Next 6 Months!  Purchase more of the U.S. Treasury’s debt, in one giant shell game that will forever change the value of your money, devaluing it in the greatest re-inflation campaign of all time

arrow black Profits Map For The Next 6 Months!  Keep short-term interest rates absurdly low, with savers bearing the brunt of its policies

The end result …

arrow black Profits Map For The Next 6 Months!  A dollar that will remain in a long-term bear market, clearly set to lose much more of its purchasing power in the months and years ahead

arrow black Profits Map For The Next 6 Months!  An ongoing collapse in U.S. Treasury bond prices, despite the Fed’s purchases of U.S. Treasury bonds, and as the entire world awakens to the fact that the U.S. government is bankrupt

arrow black Profits Map For The Next 6 Months!  A continued slide into a black hole for the U.S. economy

All this, while China, India and other Asian countries continue to barrel ahead.

But if you think any of the above means there’s no money to be made in the markets, think again. Just take a look at how the positions I’ve previously suggested in this column are faring …

Of the 16 suggestions I’ve made, 15 are winners, with open gains as high as 38.27 percent — in as little as eight weeks.

Closing Price Chart

What’s more, based on what I’m seeing, I expect even more gains in the weeks and months ahead.

My Profits Roadmap For The Next Six Months …

Before I get to the specifics, there’s a few things to keep in mind …

First, wild swings will continue to dominate almost all markets, confusing investors and professional traders alike.

Consequently, those who don’t keep the big picture in focus will suffer big losses. But for those who do, big gains are on the horizon.

Second, all major intermediate-term trends remain intact. Higher for stocks and natural resources, sharply lower for the U.S. dollar and U.S. Treasury bonds.

Third, re-inflation attempts by the Fed will continue to take hold.

Fourth, Asian markets are poised to outperform U.S. markets.

Now, let’s look at the charts, so you can see for yourself what I’m talking about …

The Dow: Notice how the Dow has thrust above an important downtrend line on the weekly chart.

Dow Industrials Could Handily Climb to 10,000 Level Over Next Few Months

This is a significant development. While it does not mean the Dow has bottomed, it does indicate that it has certainly stabilized.

Dow Industrials Cycle Projection

Moreover, it would be perfectly normal for the Dow to continue to rally as high as the 50 percent retracement level shown on the chart, regaining half of what it’s lost from its peak. That stands at the 10,344 level.

Additionally, in this second chart, my cycle studies show the Dow rallying into the end of June, then pulling back a tad, and rallying again into mid-August, where I would expect 10,344 to be reached.

Bottom line for the Dow Industrials: I expect the rally in stocks to continue higher, albeit with pullbacks along the way.

The U.S. Dollar: The dollar is a key driver of many markets.

Dollar in Severe Downtrend

Notice how weak the dollar is on this chart.

March high in dollarAfter a brief rally in April, the dollar has collapsed again and now lies within striking distance of its record low. The downtrend is solid, sharp, and almost relentless with no major support nearby, other than the record low at 70.698 on the index.

Plus, this cycle chart of the dollar confirms the chart action. It shows the dollar trending lower into late August, early September, before the downtrend gets any relief.

Bottom line for the dollar: It’s in trouble. This supports my fundamental view that the Fed not only is printing money like crazy, but will continue to do so. And, despite what the Fed may say in public, it actually wants a weaker dollar to help re-ignite asset inflation.

Gold: The yellow metal is in an extraordinarily bullish position, preparing to blast off to well over $1,000 an ounce.

Very bullish pattern on gold chart

Take a look at the chart. Notice gold’s strong uptrend, supported by two rising uptrend lines.

Also, look at how gold has now thrust up through the downtrend line from its most recent high back in March. A very bullish picture indeed!

Gold shows VERY BULLISH cyclical pattern into August 2010

Even more bullish: The cycle projections for gold. Look at how my cycle projections nailed gold’s late 2008 low at just under $700. It then pointed to a choppy but rising trend through the first half of this year, which is exactly the action we saw, with gold rising more than $50 last week alone.

Now take a look at the October period for this year, and see how the bullish cycle patterns literally take off to the upside, rising into the fall of 2010!

These projections in gold are entirely in keeping with the underlying fundamentals, which show …

1. A deteriorating economy

2. Massive re-inflation efforts by the Fed

3. A collapsing dollar

Bottom line for gold: It’s one of the strongest assets there is, as I’ve been telling you all along. I expect my target of $2,250 gold to be hit by August 2010, and possibly even sooner.

Bottom line for YOU …

First, if you don’t already own any of the shares mentioned previously, it’s not too late.

I would seriously consider buying the Dow Jones Diamonds (DIA) … the iShares FTSE/Xinhua China 25 (FXI) … and the Energy Select Sector SPDR (XLE).

For those and any other positions you buy, place a protective sell stop at no more than 10 percent below your entry price to help reduce risk.

Second, you must own gold. That should be a no-brainer. One of the best ways: The SPDR Gold Trust (GLD), the most liquid gold exchange traded fund out there.

For more precise buy-and-sell signals and other ways to trade gold, including mining shares and more, be sure to see my Real Wealth Report.

Third, continue to steer clear of long-term U.S. Treasury bonds. They are a disaster in the making. There is nothing safe about them right now.

Fourth, stash your safe-keeping money in short-term Treasury bills or the equivalent Treasury-bill only money market fund.

Fifth, to make oodles of money, don’t be afraid of the markets and don’t confuse the economy with the markets. Sometimes markets make major moves that are a complete paradox with the underlying fundamentals.

Just like we’re seeing now. The economy is still sinking, yet stocks are rallying and getting set to rally even more.

Lastly, stay tuned!

Best wishes,

Larry

P.S. Be sure and join my Real Wealth Report as we make oodles of money in these markets. It’s just $99 a year for 12 monthly issues, 24/7 website access, all flash alerts and all recommendations!

This investment news is brought to you by Uncommon Wisdom. Uncommon Wisdom is a free daily investment newsletter from Weiss Research analysts offering the latest investing news and financial insights for the stock market, precious metals, natural resources, Asian and South American markets. From time to time, the authors of Uncommon Wisdom also cover other topics they feel can contribute to making you healthy, wealthy and wise. To view archives or subscribe, visit http://www.uncommonwisdomdaily.com.

Uncommon Wisdom Archive

© 2005-2016 http://www.MarketOracle.co.uk - The Market Oracle is a FREE Daily Financial Markets Analysis & Forecasting online publication.


Comments

Invest In Stock Market
11 Aug 09, 07:32
Invest In Stock Market

Very good steps described about how to Earn Money from Stock Market. Really it was very useful steps and i thought that it was very helpful for those who wanted to earn money from home. Elite Traders provides day trading courses, stock trading techniques and courses with live trading room at Daytradingexplained.com.au. It is a practice to make money from home. Day Trading is the smartest way to become financially strong and independent. For more information please visit on linkā€¦.


Post Comment

Only logged in users are allowed to post comments. Register/ Log in

Biggest Debt Bomb in History