Best of the Week
Most Popular
1.Independent Scotland Will Disintegrate as Unionist Regions Demand Referendum's to Rejoin UK - Nadeem_Walayat
2.Bank of England Panic! Scottish Independence Bank Run Already Underway! - Nadeem_Walayat
3.Scottish Independence Referendum Result NO 55%, YES 45% - Vote Forecast - Nadeem_Walayat
4.Scotland Independence Result NO Win 55% to Yes on 45% - Nadeem_Walayat
5.US Dollar Forecast to Go Much Higher - David_Petch
6.Russian Union Of Engineers Accuses Ukraine Airforce In MH17 Crash - Raul_I_Meijer
7.The Emergence of the US Petro-Dollar - Gary_Dorsch
8.Don't Miss This Gold Buying Opportunity - Brien Lundinr
9.Silver Price: A Collapse and a Rally - DeviantInvesto
10.Silver Buyers Keep Stacking And Demand Higher Despite Falling Prices - 18th Sept 14 - GoldCore
Last 5 days
The Japanese Deflation Myth and the Yen’s Slump - 29th Sept 14
Epic Investor Optimism that Can Be Reversed Only by a Huge Stocks Bear Market - 29th Sept 14
Russia’s Gokhran Buying Gold Bullion In 2014 and Will Buy Palladium In 2015 - 29th Sept 14
The End of Monetary Policy - 29th Sept 14
Here's What Rising Interest Rates Really Do to Your Shares - 29th Sept 14
Is a Credible Stock Market Top Forming? - 29th Sept 14
Silver Price At or Very Close to an Important Low - 29th Sept 14
Gold Price Very Close to an Important Low - 29th Sept 14
Nihilism And The Unknown Future - 29th Sept 14
Stock Market S&P, NAS Change In Trend? None Apparent, But A Caveat - 29th Sept 14
UK Saved From I.S. Threat But Scottish Independence Nightmare is Not Over! - 29th Sept 14
U.S. Aggression - Will Russia and China Hold Their Fire? - 28th Sept 14
Currency Wars and the Death of the Euro - Audio - 28th Sept 14
Obscure Maritime Law Practically “Guarantees” Profits for These Energy Companies - 28th Sept 14
Stock Market Primary IV Underway? - 27th Sept 14
Darwin And The Climate Apocalypse - 27th Sept 14
The Global Middle Class and Copper Consumption, A Stop Spike Event - 27th Sept 14
Can Money Save The Climate? - 27th Sept 14
Gold And Silver - PetroDollar On Its Deathbed? PMs About To Rally? No - 27th Sept 14
Debt and Inflation Consquences of American Fear - 27th Sept 14
U.S. and Global Confidence are in Divergence - So Are Stock Markets - 27th Sept 14
Are U.S. Cars About to Crash? - 27th Sept 14
Why the U.S. Created and Armed ISIS From Libya to Syria - 27th Sept 14
Stock Market vs the Developing Bear Market for Liberal Democracy? - 26th Sept 14
Stock Market Major Selloff Looms - 26th Sept 14
How My Charts Uncovered Two Big Stocks That Are Soaring Like Small Caps - 26th Sept 14
What Cycles Reveal About Stock Market Crash - 26th Sept 14
Gold Not A Safe Haven On Terrorism, Middle East Bombing, Russia ... Yet - 26th Sept 14
Valuing Gold and Turkey Farming - 26th Sept 14
Gold $1200 Underpinned by Physical Demand - 26th Sept 14
Inflate or Die! When Leverage Fails and Market Hope Turns to Fear - 26th Sept 14
Market Forecasts for Stocks, Gold, Silver, Commodities, Financials and Currencies - 26th Sept 14
Gold and Silver Bear Phase III Dead Ahead - 26th Sept 14
The Home Depot Breach Boils Our Blood – and It Should - 26th Sept 14
Why the Pundits are Wrong About Crude Oil Prices - 26th Sept 14
Where’s the Economic Growth? - 26th Sept 14
Stock Market Future Bull - 25th Sept 14
The Specter of Global Debt Default is Once Again Rearing its Head - 25th Sept 14
All Major Market Analysis and Forecasts Investor Open House has Started! - 25th Sept 14
Federal Reserve Policies Cause Booms and Busts - 25th Sept 14
Currency Wars Deepen - Russia, Kazakhstan Buy Very Large 30 Tons Of Gold In August - 25th Sept 14
Strong U.S. Dollar Pressures Gold - 25th Sept 14
10 Things That Affect Your Purchasing Power - 24th Sept 14
US Government - The World’s Largest Subprime Debtor - 24th Sept 14
Venezuela's Gold Appears To Be Still In Venezuela But For How Long? - 24th Sept 14
The Washington-Wall Street "Corruption Corridor" - 24th Sept 14
The Poison Eating at the Heart of Macroeconomics - 24th Sept 14
Gold And Silver Voodoo Analysis Price Forecasts - 24th Sept 14
Stock Market Decline Below Wave (iv) Low - 24th Sept 14
How Falling Oil Prices Could Trigger an "Unpredictable and Dangerous Mess" - 24th Sept 14
The Quick Slide From Hope to Despair As War Returns--If It Ever Went Away - 24th Sept 14
Hedge Funds Surpass 2007 Leverage; New Era of 'Permanent Investigations' Confirms Imminent Reversal - 23rd Sept 14
Home Healthcare Cuts Threaten 500,000 Jobs and Female-Owned Businesses - 23rd Sept 14
Silver, Gold, Debt and Taxes - 23rd Sept 14
A Post-Petrodollar Play for Triple-Digit Gains - 23rd Sept 14
Regime Uncertainty Weighs on U.S. Economic Growth - 23rd Sept 14
Bread, Circuses and Bombs - Decline of The American Empire - 23rd Sept 14
Has The Gold Price Drop Run Its Course? - 23rd Sept 14
Stocks Rally Following Janet Yellen's Conference and Scotland's Historic Referendum Result - 23rd Sept 14
Why Isn’t U.S. Housing Market A Bubble? - 23rd Sept 14
The Macro View and the Stock Market - 23rd Sept 14
Gold, the Fed and the Looming Stock Market Correction Q&A - 23rd Sept 14
Can Gold Act as a Safe Haven Again? - 23rd Sept 14
Tesco Super Market Giant Fast Disappearing Down a Financial Black Hole - 22nd Sept 14
Where China and Japan Are Investing Billions - 22nd Sept 14
Scotland YES 71% - Global Youth Intifada Moves On - 22nd Sept 14
U.S. Dollar: The Last Hurrah? - 22nd Sept 14
China Moves To Dominate Gold Market With Physical Exchange - 22nd Sept 14
One Giant Cluster Ponzi - 22nd Sept 14
The Millenial Cult Of Global Warming - 22nd Sept 14
Dubai Residential is NOT a Property Bubble But the Party’s Over - 22nd Sept 14
Stock Market Topping Process Update - 22nd Sept 14
Indian Stock Market BSE SENSEX The Encore Rally - 21st Sept 14
ISIS Fear-Mongering Ahead of Another US False Flag? - 21st Sept 14
Ecology Politics And Haeckel's Tree Of Meaning - 21st Sept 14
ASX200 Stock Market Index Set For New Highs - 21st Sept 14
Scottish Referendum Not Avoiding The Future - 21st Sept 14
Five Lessons Learned from the Scottish Referendum - 21st Sept 14
The Problem With UKIP And Other I I P's - 21st Sept 14

Free Instant Analysis

Free Instant Technical Analysis


Market Oracle FREE Newsletter

The Most Exciting Event in the History of Technical Analysis

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

© 2005-2014 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

Free Report - Financial Markets 2014