Sunday, February 07, 2010

A wonder to behold

Through February 10, EWI is offering free access to their Forex and Currency forecasts.  Although I am fairly new to currency trading, I am familiar with the work of Jim Martens, Senior Currency Analyst at EWI and believe he is one of the most skilled and effective analysts at EWI, second only to Robert Prechter himself.  His educational videos available at EWI are some of the very best tutorials on Elliott Wave I have ever seen.   In other words, whether you trade currencies or not, Martens' work is well worth the time and/or commitment needed to better understand EW analysis and in particular the opportunities that are being presented this year across global financial markets.

The chart below is from Martens' end of day analysis this past Friday. Accompanying the chart within the service is a video by Martens in which he discusses the pattern of a third wave appearing in both the Euro and US Dollar (opposite third waves, Euro-Down and US Dollar-Up). Although the video covers current patterns in the currencies, perhaps more on point it is a description of the mindset needed to exploit the opportunities presented by imminent third waves.  That is exactly what Robert Prechter is suggesting (more like banging the table) is happening right here, right now in global stock markets.  As evidence mounts that he is correct in this assessment, this video hammers home how investors and traders can and should take advantage of a rare and wonderful wonder to behold.

It is an important video, but the only way to see it is to log into the week of free access being offered by EWI.

When logged in, look for:

Dear Subscribers, let's talk some simple concepts: Third waves. Did we just see one in the EUR/USD? Watch my weekly video for details (Feb. 05, 2010). -- Jim Martens, Senior Currency Strategist.

Simple Concepts: Third Waves (Feb. 05, 2010)



Anonymous said...

Saints are NFC team. So the "superbowl indicator" says that US SMkt will finish the year higher.

the rally should come, then, in the second half of the year. This will likely be about the time the Treasury market is coming unglued.

Tom Petty

"I found there was only one way to look thin, hang out with fat people." ~ Rodney Dangerfield

Anonymous said...

Thanks Allan,for that link to the EWI.
First thought,before I get to doing diligence in the study of it all,wanted to note that something has changed in the old correlation, between the stock market and the EUR/USD as it was last year,a good correlation to watch...appears to have 'stopped working that way' now.
As goes the EUR so goes the stock market ? not any longer.
maybe has to do with the weakened economic conditions in the Euro zone, with the PIGS countries,and its impact on the weakness of the Euro.

You can see the impact of it by also looking at the $usd and how it reached maximum weakness up to november bottom, which corresponded to a top in the EUR/USD at 1.51 44

ok? when previous top in july 2008 was a whopping 1.60 and change.

Its the impact of a much weaker euro zone economy.

So,also see that the stock market correction thus far has brought S+P down to the october and september lows of last year BUT the Eur/USD at this moment is all the way down to and looking thru the July low of last year, and this chart suggesting a further drop to the 1.24 area ,corresponding to a march 2009 bottom (double bottom) ....while That may take place....shouldnt at this moment pre suppose and imply that the stock market will also hit the march bottom.

these two indexes were in lock step for the last year ....until now.

There are some changes happening in all these correlations. I think oil and gold are also involved in the alterations and changes.

So, for what thats worth...should be considered in the analysis.

Its no longer wise to make the correlation assumption.
I still maintain the frame of mind that the only way a crashing catastrophic wave 3 of greater depression proportions can happen is if WAR is waged against Iran. Then it would happen.

So yes, it looks like the EUR/USD could very well become a 5 wave down to 1.24.....but the market could hold at July bottom. not march .

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