Key Equity Market Indicators




Symbol $ Chg. YTD % Chg. YTD $ Chg. 3rd qtr. $ Chg. MOM July $ Chg. WOW

DIA $1.85 1.80% $6.97 $6.97 $0.43

SPY ($0.19) (0.17%) $7.05 $7.05 ($0.14)

QQQQ $0.20 0.44% $3.10 $3.10 ($0.25)

VXX ($11.50) (33.75%) ($8.63) ($11.50) ($1.08)


The above are some of the key indicators that I closely monitor to gauge the breath of the market. As you can see from the chart above, the bulls made an impressive bullish move in the month of July 2010 given higher than expected 2Q earnings announcements. Consequently, the DIA and the Q’s are up for the year while the S&P 500 is close to flat. I have also noticed that copper prices, especially buyers in the three month contracts have increased within the last two weeks and there is a positive correlation so far between copper prices and the S&P 500. Notwithstanding, the currency pair USD/JPY is trading near an all time low and yields on US debt obligations, especially within the front end of the curve have appreciated within the last few weeks. Thus, indicating a slowdown in economic growth and potentially further declines in the equity markets. Furthermore, the traders took some profits off the table at the end of the month even though the bulls fought strongly in last two days of trading in July.

Normally July is the best performing Dow and S&P month for the 3rd quarter and the summer rally is the weakest of all quarters. Consequently, I anticipated that the month of July 2010 will be a strong month given the noted favorable earnings announcements while a wave of negative economic reports was being released (i.e., lower US and global GDP figures, July’s Beige Book minutes, and etc). I anticipate that both August and September months will be down months and bearish given the latest economic reports, lack of buying power of the consumer, it’s a midyear election year, and it’s a double zero year.

Introduction

Hello,




I have over twenty years of trading experience under my belt and I am very fortunate to have been able to leave the executive corporate world at the tender age of 37 eight years ago to follow my dream of making money for myself by trading.

I would like to share my trading advice as well as the breath of the market so that my followers could also make money and not get burnt based on Wall Street’s manipulations of the markets. My personal goal is to eventually start my own paid subscription service in the near term future. I would recommend that you follow my advice for at least a week before you actually start investing so that you can feel comfortable with my recommendations. I base my investment decisions on all my years of studying eastern and western technical analysis and keeping very abreast of global economic data and the actions of the Federal Open Market Committee and leading economic countries as over 30 percent of S&P 500 sales are derived from abroad.



Swing trading provides investors a huge opportunity to make profits. As the market sentiments evolve, long term investing becomes less of a dominant form of investing. Swing trading has many advantages over long term investing, especially when implementing with a timing techniques of both eastern and western studies.


I will provide you tomorrow with my market advice and the securities that I personally trade. The bulls dominated the global equity market this month (i.e., July 2010). Are you well position for August 2010 and for the rest of the year? Are you diversified in different investment vehicles (equities, currencies, commodities, and etc.)?


Ralph