by Don Vialoux, Timing the Market
Interesting Charts
Extraordinary volatility in world equity markets! The NASDAQ Composite Index recorded a range of 108 points yesterday, but bounced nicely from near its 200 day moving average to record a gain on the day. Nice bullish key outside reversal day!
Volatility was triggered mainly by uncertainties related to political developments in Ukraine. Russian equities were particularly hard hit.
European equity markets led by Greece also had a rough day.
Concerns about Ukraine triggered a flight to quality including U.S. Treasury bonds and the U.S. Dollar.
Strength in the U.S. Dollar triggered weakness in precious metal prices and precious metal stock prices.
An Update on the Technology Sector
First quarter reports by major Technology companies are off to a good start. Background on the sector written by Don and Jon Vialoux was published on Monday in the Globe and Mail. Following is a link:
After the close yesterday, Intel and Yahoo reported higher than expected first quarter earnings. Both stocks responded on the upside. Intel is expected to open today near a 12 year high. Watch for news from IBM, Google and Sandisk today.
FP Trading Desk Headlines
FP Trading Desk headline reads, āDavid Rosenberg: Correction is long overdue, but no bear market comingā. Following is a link:
FP Trading Desk headline reads,ā Target low P/E sectors like Tech and Financials: Deutsche Bankā. Following is a link:
Technical Action by Individual Equities
Technical action by S&P 500 stocks was bearish yesterday. Fifteen S&P 500 stocks broke support and four stocks broke resistance. Stocks breaking support were dominated by Consumer Discretionary stocks. Notable among stocks breaking resistance were utility stocks: Consolidated Edison and Duke Energy. Following are representative stocks:
Pulte was not the only home builder stock to come under pressure. The ETF for the sector also broke key support.
Special Free Services available through www.equityclock.com
Equityclock.com is offering free access to a data base showing seasonal studies on individual stocks and sectors. The data base holds seasonality studies on over 1000 big and moderate cap securities and indices. To login, simply go to http://www.equityclock.com/charts/
Following is an example:
TECHNOLOGY Relative to the S&P 500 |
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
|
Imagining the Impossible for Traders
By Adrienne Toghraie, Traderās Success Coach
Before you can achieve the impossible, you will have to imagine it first. That is the message that Wharton School of Business professor of Marketing, Yorum Jerry Wind, passes along in his excellent book, The Power of Impossible Thinking. Every successful trader with whom I have ever worked has understood this principle on some level.
Professor Wind suggests that you become aware of the models you have in your own mind of what is possible and then challenge them and test them against reality. To this list of strategies, I would like to add my own caveat:
Get in touch with the things that you dream of and truly want for your lifeā¦and do so without censoring.
There is no point in imagining the impossible that you do not really want to happen or to have. So many traders do not want to take the time and effort required to find out what it is that they really want. The reluctance to do so often comes from fear. This fear can be a very complicated issue. For example, it can be a fear of failure, but it can also be a fear of discovering something you do not want to know. I have counseled traders who were afraid to discover the truth that they did not actually want be traders, or they did not want to have all the things they said they did or the level of success they claimed they wanted. In fact, they really wanted something quite different.
In my experience and training as a Neuro-Linguistic Programmer, transformational models do not work unless they are accompanied by the emotional energy of passion. It is just as true that you cannot achieve it without imagining it first as it is that you must really want something to happen before it can happen. The vision of the impossible has no power by itself until it is backed up with the force of passion and desire.
Then, in imagining the impossible, there is the great problem of censoring to consider. Even before a dream is verbalized, the censoring mechanism in most people renders it stillborn. Traders who want to forge dreams into reality must come to terms with their internal censoring mechanisms. Most of the voices that we hear when we censor are the internalized voices of someone else: a parent, teacher, friend, or those people who influence the way we feel about life and about ourselves. If you have lived around cynical people, you have taken in a toxic load that needs to be reduced. But how? Here is one strategy for detoxifying yourself of cynicism and āyou canāt do it and you canāt have itā thinking: Surround yourself with dreamers, creative people, ānothing is impossibleā thinkers, and people who can imagine things that have never been or the way they could be. For example:
Ā· Spending time around little children who have not yet started public school is a way of getting back to the dreamer in you. Little children are not cynical and they are not wedded to the notion of āimpossible.ā They still use their imaginations and they still believe that anything can happen.
Ā· Artists of all kinds are people who believe in the impossible. They live in their imaginations and spend their careers looking for the next truly original idea. Go to art shows, museums, and street fairs. Make friends with some artists. Get away from the same old people with whom you always spend time.
Ā· Read science fiction. Science fiction writers imagined nearly all of the most extraordinary developments in the last one hundred and fifty years long before their development, starting with Jules Verne who wrote about space and underwater travel many decades before they were possible.
Ā· Read some of the most creative modern comic books, which have been renamed graphic novels. The great writers of graphic novels, from Jeff Smithās Bone collection to Frank Millerās Dark Knight Returns and Alan Mooreās Watchmen, excel in envisioning things of which no one else has ever conceived. Find the store in your city that sells comic books and graphic novels. Ask the fellow behind the counter for the best creative writers/artists. He will talk your ears off and show you enough amazing work to stimulate your senses and your imagination.
So, now that you have begun to clear out the dust in your imagination. Begin to ask yourself what it is that you really want out of trading and what you want out of your life. Each time you have a thought, write it down. Wait a few days and read it to yourself, and when you do, do not ask yourself if you can believe in the possibility of its existence. Instead, set yourself the challenge of imagining what it would look like.
To do this, you will have to sit quietly and allow yourself to become very relaxed. Once you have closed your eyes and started to put detail into the picture you must now turn up the volume on your feelings. You can do this by telling yourself how excited and happy this vision makes you. You can also increase your passion for the dream by adding more and more detail. Remember that you cannot bring the impossible into reality if you place it in the future. It has to be imagined as happening in real time. Get your heart thumping. Smile as you picture your dream a reality. These steps may appear foolish to you, but they work!
In The Crack in the Cosmic Egg, by Joseph Chilton Pearce and Thom Hartmann, the authors write about the concept of a metanoia, a process of focusing like minds on the creation of an impossible dream and how seemingly impossible things have come into being in this way. The last step in the imagining of the impossible is the act of finding others who will support your vision by imagining it as reality along with you. The more passion you put into your imaging, the more support you will attract from like minds. Before you know it, you will have created your own metanoia, and your impossible dream will be on its way to reality.
= = = = = = = = = = = = = = = = = = = = = = = = = = = = = = =
Disclaimer: Comments, charts and opinions offered in this report by www.timingthemarket.caĀ and www.equityclock.com are for information only. They should not be considered as advice to purchase or to sell mentioned securities. Data offered in this report is believed to be accurate, but is not guaranteed. Don and Jon Vialoux are Research Analysts with Horizons ETFs Management (Canada) Inc.Ā All of the views expressed herein are the personal views of the authors and are not necessarily the views of Horizons ETFs Investment Management (Canada) Inc., although any of the recommendations found herein may be reflected in positions or transactions in the various client portfolios managed by Horizons ETFs Investment Management (Canada) Inc.
Horizons Seasonal Rotation ETF HAC April 15th 2014
Copyright Ā© Don Vialoux, Jon Vialoux, Brooke Thackray
