We sold BP at 335p

We sold BP because the stock is falling in five waves (impulse wave) and the bounce at the beginning of April is wave (4). The decline is wave (5) and it will be in five waves. When you see the collapse in the oil price, oil companies will suffer. Today oil dropped to a 21-year … Continue Reading

A low risk strategy on UK equities

The long/short strategy on UK shares was launched in May this year and after six months the results are impressive. 76% of trades are successful and the return is 13% in six months. This is equivalent to 26% per year. Here are the results Rules: When we buy shares we invest 20% of the account … Continue Reading

A safe strategy

Last week I talked about the UK shares strategy with a 85% success rate, today I would like to give you more information on the strategy. In these volatile markets you need to trade safely in order to survive. As you know when volatility is high the stop loss is at risk. A tight stop … Continue Reading

The day of reckoning

Over the years and in particular since the last financial crisis, I have always maintained that the crisis would return and the stock market would collapse. The natural progression of the stock market is a reflection of social mood and it follows an Elliott wave pattern. This pattern is terminal which is telling us the … Continue Reading

Upside in the stock market is limited

The stock market has entered a new phase, one which can be described as sideways. I have talked about this pattern many times, when the upside is limited and the stock market makes new highs, there will be an increasing number of sellers. This means the rally will fail to extend and profit taking will … Continue Reading

Prepare for deflation, act now

The stock market rally extended this week following last week very weak nonfarm payrolls. The message from the job report was similar to that from the ADP employment report, employment in the US is falling sharply. We already knew that many sectors of the economy were slowing but this was not reflected in the job … Continue Reading

Stock markets turned down as I predicted

You will recall the extreme optimism about many things from a US-China trade deal to the dovish Fed at the end of April. This extreme in bullish sentiment was a warning the trend would turn down (as recorded by my trend reversal indicator), that is why I expected a stock market decline. The S&P 500 … Continue Reading

When sentiment is extremely bullish

Bullish sentiment is associated with rising stock market. However after a long period of bullish sentiment, the mood will be too bullish i.e. extremely bullish, it’s like euphoria. At that moment the risk of a trend reversal is high. see http://www.e-yield.com/ftse-100-forecast/