Special Attention: 7th of September will be the last chance to join TMS via our Special Rate Annual Membership offer after which annual subscriptions will be closed throughout 2010 & will reopen at some point in 2011 next year. Join us exclusively now at virtually less than $17 a month for full access to our private member content.
"Markets are constantly in a state of uncertainty and flux and money is made by discounting the obvious and betting on the unexpected." ~ George Soros
The reality within the markets is that if you don't respect the characteristics of the markets then chances are stacked against you to earn any consistency monetary value out of them. The real fact is that the markets don't know who you are and therefore when you place your trade just remember that the markets don't owe you anything! You owe it to yourself to carry out your actions in disciplined fashion but if you feel like trading carelessly then the chances are that the markets will treat you carelessly as well. With the markets be worth more than your pot it is fair to say that you can be taken out with absolute ease.
You should respect your account balance and furthermore respect your stakes for your next trade. A trade which puts your account balance in jeopardy should be rejected before triggered. It may pull off with pure fluke involved but next time it won't and it will take your account with it. Why risk what you have to create more as losing your own worth would throw you into a downward spiral in which you would find it harder to rise back to.
ATR or Average True Range
This is the measure of volatility within a financial instrument and the indicator itself was developed by J. Welles Wilder. It would be a wise to choice to acknowledge the level of volatility of a financial instrument in relation to your account size and your next trade. The higher volatility would require a stricter criterion as per your account risk.
Dow Jones Weekly Chart
It is no surprise to our clients that the market did virtually fall 800 points from the mentioned 10700 mark and this is before the level was even printed. Furthermore we informed all audiences that the yawning range activity is basically continuing ONCE AGAIN and no crash would emerge. Adding to this we also stated that 10000 is being breached but the market will not crash but will also move closer to the 11,000 mark then the 10,000!
The Dow Jones closed at the highs of the session on Friday and at the highs of the week in which we are virtually getting closer to 11000 then 10000!
August produced 886 points from five markets and on the first day of September the TMS system produced 704 points for its global cliental. Absolutely remarkable!
Where now for the Dow Jones?
At TMS we're not putting our speculation hats on but we do feel that the upside needs traders to look to the downside. However as we stated the tables turned last week; from traders looking near 2010 lows, we now have traders look upwards.
We feel differently once again. Although we support upward action and feel the market can move higher it is our experience that wants traders to look downwards whilst the markets move upwards.
The weekly chart above shows a fork which has the Dow Jones lofty 14000 levels to the Dow Jones lows of 6500! The weekly chart also shows that 10550 and 10700ish could prove testing once again and if reached it will not ignite 11000 again but risk will still be pointing downwards as it did at the start of August.
Next week is going to be very demanding from a technical chartist's point of view as we would like to see confirmation for the next conclusive move. Yes we were buyers at 10000 but are we buyers now? Upside follow through can be expected next week but the risk elements are changing and this is why we will be following our TMS system triggers for elimination of speculation as price will be detrimental in deciding the north or south route.
Crude OIL Four HOUR chart scenario 1
We have two scenarios for Crude Oil which will continue to move in line with stocks this year as majority of the global markets are moving in tandem with one another during this credit crunch crisis.
Firstly the chart above shows how September could have the price of Crude heading straight back up to August highs in which this week price has moved from $71 to $75.
Crude Oil Four Hour chart scenario 2
Unfortunately scenario number two is not so optimistic. Just as we expect stock markets to turnaround in u-turn fashion and head much lower, crude oil would have a similar outcome.
Should price fail from the red line shown on the chart above then this could well trigger the start of a big decline in which price would be set to hit $61 in September.
Once again at TMs we produce unbiased scenario's that actually occur BUT we take TMS system triggers that actually gain - August 886 points and 704 points already racked for September!
My name is Ajit Singh and my work with the financial markets started from the young age of 17. We are www.tradingmarketsignals.com and so far in August our TMS system has gained 886 points(Closed signals) from five major markets: Dow Jones, Euro, Sterling, FTSE100 & Crude Oil in addition to which some gaining signals are still open with more triggers taking place this week!
This is it: 7th of September will be the last chance to join TMS via our Special Rate Annual Membership offer after which annual subscriptions will be closed throughout 2010 & will reopen at some point in 2011 next year. Join us exclusively now at virtually less than $17 a month for full access to our private member content.
http://tradingmarketsignals.com/#/tms-annual-membership-offer/4542738012
