FNArena has added another video to its Investors Education section on the website.

ATW's Jerry Simmons gives a rare insight into his weekly wrap sessions for market traders. Underlying theme is the USD should be closely watched for financial markets' direction, while the underlying trend for US equities appears to be down (short and medium term). Total duration of this educational broadcast is 53 minutes.

Summary

This is not a recording of the customary Monday Strategic Prep; rather, it is a recording of the Friday Weekly Market Review. In those Friday weekly market reviews, we look at the key market events of the week, comment on why they happened, how we were able to foresee them – as in most cases we do - and what scenarios we can expect to develop from that market action. In particular, Jerry Simmons looks at the S&P500 equity index in this review, and the 30 year bond market.

Comments

This video has interesting educational content; Jerry comments on why gaps often occur in waves 3 of 5-wave-Elliott waves; in fact, they are a “tell-tale” sign of waves 3. He defines “gap” as a move in the overnight Globex market of more than 5 S&P500 points. He goes on to comment how to construct the initial target and then the ideal target of 5-wave moves using DF51, Exhaustion Fib as well as 786-DF51 tools.

Further, pointing out that the US-Dollar did not move during the current Middle East crisis, he comments on whether news moves the market and if so, in what conditions: he concludes that news normally only acts as a catalyst to spark a move that the market had been priming itself for anyway based on technical and structural grounds, explaining why bad news gets largely ignored in bull markets and good news gets largely ignored in bear markets. He points out that the fact that the US-Dollar did not assume its customary safe-haven role during the recent crisis and did not rise in response to the crisis, is telling us volumes about a possible big story hiding about the US-Dollar. Jerry calls on all traders to closely monitor the US-Dollar.

He explains, going back to the 1990s, the role of different moving averages in technical analysis, especially the ones he personally favours, which are the 8, 17, 50 and 200 period EMAs (exponential moving averages) and how, just by trading the 50 EMA, one could have stayed on the correct side of the market for years and years, especially if using the 8 and 17 EMAs as early warning signals for the 15 EMA.

Finally, the 30-year bonds are looked at; the conclusion is that the short & medium term trend is up; but the long term trend still remains down. Given the traditional negative correlation between the 30-year bonds and the equities, this leads him to conclude that if the short & medium term trend for the bonds is up, the short & medium term trend for equities is down.

To view the ATW Strategic Prep Video (originally from November 29, 2010) titled "ES Wedges_n_5Wave_US" click HERE or visit the FNArena Investors Education section of the website.

Here's the direct link: http://www.fnarena.com/index2.cfm?type=dsp_front_videos

All views expressed are Jerry Simmons's, not FNArena's (see our disclaimer).

Jerry Simmons has over 25 years of full-time trading experience. He is the senior partner and head mentor for the “Masters” Programme within the education system at New York based Advanced Trading Workshop (ATW). ATW recently set up shop in Australia through the establishment of ATW Australia (since mid-2010).

FNArena is pleased to have Jerry Simmons as a highly valued contributor to its service which aims at both educating investors and assisting them with their own market analyses.

About ATW Australia Founded in June 2010, ATW Australia is a “one-stop-shop for all a trader needs to succeed”: quality education for new traders, superb advanced trading education, fast unfiltered data, a world-leading trading platform, customer oriented competitive brokerage, quality ‘Made in the USA’ specialized trading computers, trading magazines, and the all-important psychological mentoring and coaching for traders. The trading educational products are provided by the Advanced Trading Workshop, Inc. in New York, all other services are provided by a network of partners that were chosen based on their superior products and services in their specific field of expertise. FNArena is one such partner.

To learn more visit www.advancedtradingworkshop.com.au.

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