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Sunday, August 16, 2009

Week in Review: Market Relationships (PODCAST)

"Developing the plan is actually laying out the sequence of events that have to occur for you to achieve your goal." - George L. Morrisey

Welcome to the Week in Review!

For the last few weeks, I've been discussing the economy. The current state of the economy, as well as possible scenarios that I see developing within the economy. I've discussed what I believe an actual 'recovery scenario' would look like (as opposed to what the mainstream financial media would like to feed people that a recovery scenario looks like). I've discussed what I believe deflation in asset prices would look like, in a 'round 2' of deflation. In the future I will discuss a "credit default" scenario, and what I believe it would look like.

It's all well and good to talk about various 'scenarios'. But when and how will I make the decision to "go with" a certain bias?

I'll let the market tell me which bias is the correct bias out of the current developing scenarios.

Ok, that sounds all well and good Dan. But what does that mean? How does one go about doing that?

After our 'market review', I'll discuss that in this weeks "Week in Review Podcast". Just click play !

(Podcast Included. If you're seeing this entry elsewhere and cannot play the podcast? Click this link to go to the exact podcast entry ...)

Click here to download this podcast.

Here is a picture of the current Bond Curve

(Click to Enlarge)

Here is a picture of the stock markets action on Friday, as reflected by the DOW Jones Industrial Average

(Click to Enlarge)

Here is a picture of the U.S. Dollar Index on Friday ...

(Click to Enlarge)

Here is a picture of the Crude Oil as a Commodity on Friday ...

(Click to Enlarge)

Here is a picture of the 10 year Note in the Credit Markets for Friday ...

(Click to Enlarge)

Here is a picture of some rules that Larry Williams came up with when it comes to Bonds, Gold, and the Stock Market ...

(Click to Enlarge)

B = Bonds, G= Gold, S= Stocks.

Remember. Money flows. The trick, is to figure out when a 'key moment is upon us', and then look and see where the money starts flowing.

Incidentally? The song I mentioned in the beginning of the podcast? Here's the link to the video for "Don't Take me for Granted!" by Social Distortion

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Note: This is not an investment or trading recommendation. The losses in trading can be very real, and depending on the investment vehicle, can exceed your initial investment. I am not a licensed trading or investment adviser, or financial planner. But I do have 13 years of experience in trading and investing in these markets. The Challenge accounts are run for the education of other traders who should make their own decisions based off their own research, and tolerance for risk.

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