Imagination will often carry us to worlds that never were. But without it we go nowhere.

- Carl Sagan

Current World Markets:

• World Markets
• Commodities
• Currencies
• Bonds

Trade safe and
have a great day!

Next Range Projections

will be on May 30 as we

will be away on vacation  

Here’s a look at the Morningstar Sector assignments, there change from the major average highs on April 2, 2012 and their respective changes year-to-date. While all the sectors are down the arrows point to where some of the major averages would lie in this small spreadsheet.

Members: Go to Morningstar Sector & Industry Group Analysis in the navigation bar to the left and drill down from Sector to Industry Group within, to component stocks. Or go directly to Search for and Compare Stocks within Sectors; Sub-Sectors; & Industry Groups.

Get inside information from the president and you will probably lose half your money. If you get it from the chairman of the board, you will lose all of your money.

- Jim Rogers

Current World Markets:

• World Markets
• Commodities
• Currencies
• Bonds

trade safe and
have a great day!

Mr. Appel’s advice is, “There is only one buy rule and only one sell rule: You buy when the Triple Momentum Level, the sum of the 5-, 15-, and 25-day rates of change, crosses from below to above 4%. You sell when the Triple Momentum Level, the sum of the 5-, 15-, and 25-day rates of change, crosses from above to below 4%.“

Back testing Appel’s system against QQQ since it’s inception returns some very nice results (long trades only). Notice however, that only 37% of the trades are winners, typical of a trend following system. Reminder; this test is only against QQQ not any other market or security.

A good objective of leadership is to help those who are doing poorly to do well and to help those who are doing well to do even better.

- Jim Rohn

Current World Markets:

• World Markets
• Commodities
• Currencies
• Bonds

trade safe and
have a great day!

Notice how going into the October 2011 lows on the NYSE Index, both the one and three month new lows shrank, a divergence so to speak and an indication of buying at the time. Now we have the divergence on the one month with the April new lows but not on the three month. Perhaps we have more work to do before a reasonable bottom.

A very similar situation looking within the S&P 500:

And similar again looking inside the NASDAQ 100:

Education is the investment our generation makes in the future.

- Mitt Romney

Current World Markets:

• World Markets
• Commodities
• Currencies
• Bonds

trade safe and
have a great day!

The Impulse System is based on two indicators, a 13-day exponential moving average and the MACD-Histogram. The moving average identifies the trend, while the MACD-Histogram measures momentum. As a result, the Impulse System combines trend following and momentum to identify tradable impulses.

Utilizing the ETFs we analyze in our Market Laboratory report (xlsx format):

]]> http://prudenttrader.com/2012/05/elders-impulse-on-etfs-by-asset-allocation/feed/ 0 http://prudenttrader.com/2012/05/etf-range-projections-for-5-14-12/ http://prudenttrader.com/2012/05/etf-range-projections-for-5-14-12/#comments Sun, 13 May 2012 20:59:14 +0000 Bill Zimmer http://prudenttrader.com/?p=29070

In these times of the ‘Great Recession’, we shouldn’t be trying to shift the benefits of wealth behind some curtain. We should be celebrating and encouraging people to make as much money as they can. Profits equal tax money. While some people might find it distasteful to pay taxes, I don’t. I find it patriotic.

- Mark Cuban

Current World Markets:

• World Markets
• Commodities
• Currencies
• Bonds

Trade Safe and
have a great day!

Some traders personalize the markets. Rather than see the markets abstractly, they unconsciously view the markets as a person. They start to think they have a personal relationship with the markets.  Since the markets are usually uncooperative with their trading plans, they frequently believe that they have a hostile relationship. Some people are particularly prone to frustration in that they have a frustration bias. In actual personal relationships, people with a frustration bias tend to view people as out to get them. As if they are in a fit of paranoia, they jump to the conclusion that people are out to wrong them. They extend this bias toward the markets. When anything goes wrong, they jump to the conclusion that people are out to get them. They imbue significance onto the markets that just isn’t really there.

If you have frustration bias, it’s important to neutralize it. The first step is to acknowledge the fact that you tend to see personal slights where they just don’t exist. The markets may be comprised of groups of people, but the people don’t know you. When they fail to buy when you want them to, for example, they aren’t engaging in behavior to purposely harm you. It’s important to remember that it isn’t personal. The second important step to take is to anticipate adverse events and setbacks. People become especially upset when they are caught off guard. Do you become particularly upset because you don’t expect a stock price to increase the day after you sell? Do you fully consider all possibilities and expect that the unthinkable may actually happen? Another strategy is to allow yourself to make mistakes. Do not put pressure on yourself to trade with perfection. Accept the fact that you, and everyone else, makes mistakes. It’s the difference between thinking, “I was stupid to sell too early” and thinking, “I sold too early but I reasonably decided that I had waited long enough. Sometimes you’re right. Sometimes you’re wrong. I was wrong. It wasn’t the first time and it won’t be the last. I’m just going to forget it and move on.”

You are human. The markets aren’t. Don’t personalize the markets. Look at them objectively. The market action won’t always match your expectations. That’s all right. Take setbacks in stride. If you dwell on them, view them as mistakes, and mull them over, you’ll feel frustrated. But if you expect them, and accept that no one is perfect, you’ll feel relaxed, free and creative. And trading in a cool and logical state of mind will help you trade profitably.

Enjoy a wonderful weekend – hopefully you’ve earned it!