Patience … Discipline … Discipline … Discipline … Patience

March 9, 2016/by Peter Brandt

I know my sweet spot. Every trader should strive to know his or her sweet spot. We should strive to only take a trade when the market set up is in our sweet spot. We should strive to avoid trades out of our sweet spot. If you, as a trader, do not know your trade set up with great intimacy, then how in the world will you know if you are exercising patience and discipline? Once you know exactly what your sweet spot is and is not, then the real challenges begin. The real challenges for me (and it could be different for you) are different nuances of patience and discipline.

Patience to wait for just the right set up
Discipline to sit on the sidelines and not getting pulled into a trade that does not fully satisfy my requirements
Discipline to pull the trigger when the right trade comes along
Discipline to remain detached from open positions and properly manage each trade according to trade management guidelines developed over decades of market speculation
Patience to allow a position with a substantial profit potential the room and time to bear full fruit

Factor Trading – March 6th Report

March 6, 2016/by Peter Brandt

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Market Review

Factor Moves are currently ongoing in:

Gold
Japanese Yen
USD/NOK
Copper
GBP/CAD

A Factor Move is developing in AUD/NZD. This issue of the Factor also comments on Canadian Dollar, New Zealand Dollar, Australian Dollar and U.S. stock indexes.

Factor Moves in Progress

Copper (daily chart) There are several observations worthy of note on the daily Copper chart. First, note the premature breakout on Friday, Feb 26. The market broke out of the H&S bottom, but the rally could not hold. Following a premature breakout traders should be on extra alert and jump on a subsequent closing price breakout. Second, the advance and close on Monday, Feb 29 and especially on Tuesday, Mar 1, confirmed the H&S bottom. Both days served as buying opportunities. Third, for all practical purposes the target was met by Friday’s advance. I typically am conservative on determining “measured moves.” Factor is flat, having taken a crazy ride on the long side this past week.

Gold – The Ultimate Charting Market – Report

March 1, 2016/by Peter Brandt

Gold bars on nugget grains background, close-up

Gold Report – The Ultimate Charting Market

A History of Gold Charts

Free 47-Page Gold Report

AUD/CAD – Chart Developing

February 29, 2016/by Peter Brandt

AUD/CAD - This cross flashed a significant sell signal on Friday. I view short AUD/CAD as a potentially rewarding cross in the weeks and months ahead. This is a cross that can be traded in the spot forex market or using futures contract on a one-to-one basis, although such a trade would be over-weighted to CAD.

The longest-term charts show that AUD/CAD have remained in a broad trading range for many years.

The weekly chart displays several patterns worthy of note. The decline in June 2013 completed a 24-month H&S top pattern. The decline from this H&S has queickly turned into a 41-month descending triangle pattern. This is this pattern that most has my attention. I believe that the completion of this descending triangle would result in a decline in AUD/CAD to the low end of the historical price range at .7600.

Is the present decline in the S&Ps a déjà vu of 2011?

February 24, 2016/by Peter Brandt

Examining the chart structures of 2011/2012 with the present period

Classical charting principles at the core represent analog analyses -- that certain price patterns tend to repeat over time with slightly different variations.

An interesting analog situation has developed in the S&Ps. Some technical analysts have declared that the current market construction is analogous to 2011/2012 and will be similarly resolved by a continuation of the dominant bull trend. I completely disagree. Let’s examine the construction components of each period. The top chart is the S&Ps during the 2011/2112 period. The bottom chart is the current market.

Both periods had a textbook H&S top and, coincidentally, each top was completed in the month of August -- both marked as Stage 1
Both periods quickly met the target of their respective H&S top patterns only to develop a period of extreme volatility -- both marked as Stage 2
Both periods then rallied sharply back into the price zone of the initial H&S top pattern only to develop an other range of volatility -- both marked as Stage 3