The Importance of the Money Flow Index (MFI)

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Technical Analysis: Copper Popped as Expected, But…

In late November 2016, we noted copper was overdue for a higher move, thanks in part to a pick up in global manufacturing and infrastructure spending in the U.S.

We were hopeful for a rebound from $2.43 support, retesting a prior high of $2.733.

And that’s exactly what happened. 

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A Technical Picture of Human Emotion

Traders are often told to ignore the art of technical analysis.

“Technical analysis is fundamentally flawed,” says Forbes.

“The poor reputation of technical analysis is well deserved, noted another analyst.

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Technical Education: The Rubber Band Theory

Pull out a rubber band.  Now pull it with all your might in one direction. 

What happens at the point where you can’t stretch it any more?  It snaps back, right?

That very same thing happens to most stocks, indexes and ETFs, too.

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Coffee Prices Oversold, Ready to Bounce

Americans still love their coffee.

But prices have soured as traders predict a surplus, instead of a deficit. 

That, coupled with a stronger US dollar has sent coffee prices from a November 2016 high of $1.76 to $1.42.  Despite rising consumption, favorable Brazilian weather conditions are pointing to a stronger than expected harvest for the New Year.

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Charting 101: The Omen You Cannot Ignore

The U.S. markets are in a super bubble.

But if the latest technical setup is right, the bubble could soon burst.

Known as the Hindenburg Omen, it typically warns of the possibility of stock market crashes.  The last time it appeared, investors foolishly ignored it in December 2015.

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EUR-USD Technical Analysis: Where can it go from Here?

Italy put on quite the show the other night.

Shortly after the country voted “no” on reforms that could have stripped the Senate of its powers, modernizing the legal framework, it was chaos.

Prime Minister Matteo Renzi resigned.

The euro would hit 1.0507 -- its lowest point against the US dollar since March 2015.

 

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Trading 101: Common Sense Technical Analysis

The idea that drawing lines on a chart can make you money has been a matter of contention for years.  In fact, nothing has generated more confusion and criticism in charts than that of technical analysis.

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Technical Analysis: Crude Oil Head and Shoulders Pattern

It looked as if an OPEC deal was nearing.

Iran’s oil minister said it was “highly probable that OPEC members will reach a consensus at the November meeting,” after news surfaced that OPEC would given Iran greater flexibility.

Now we’re not so sure.

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Technical Analysis: Copper Posts 16-Month High

Shortly after retracing from a one-year high of $2.733 per pound, copper is recovering after finding support at $2.43.  While trading volume is expected to be weak with the Thanksgiving holiday, copper investors should be mindful of support and resistance points to determine if copper is again picking up momentum for a retest of $2.733. 

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How to Maximize your Profits with Trailing Stops

When a stock starts falling out of the sky, most of us freeze.

We become nervous, emotional traders.

We get caught up in the portfolio killer known as herd mentality.  Instead of calmly assessing, we lose our minds.

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Charting 101: The Mistake We’ve All Made

Herd mentality is a portfolio killer.

Always has been… always will be.

The reason for that is unfortunately simple.  No one thinks as an individual.

Every day, one trader follows hundreds of other trades right off the cliff, and sells. No one stops to ask, “Why am I selling? What happened?”

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Billionaire Trading 101: An Education in Pessimism

Sir John Templeton wasn’t your typical Wall Street money manager.

His Templeton Growth Fund averaged a 14.5% return for 38 years, crushing the major indices. Every $10,000 invested in that fund in 1954 was worth well over $7 million by 2005.

What set him apart was the fact he never had a forecasting system, an ability to get out before a big market crash, or any other hard-to-replicate strategy.

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