Emini Trading Update – Wednesday 6 Apr 2011 (14:14)
I’m still out of sync with posting updates to the website. I’ll get back on track after the weekend. So from next week the daily video should come out 2 hours after the close.
Being back in Sydney reminds me how awkward this time zone is to trade – because I want to get back to bed I end up rushing (subconsciously) trades and missing late-morning setups. Makes me miss Hawaii even more – plus not surfed once since we’ve been back 🙁
Question of the day …
From fellow-surfer, Jason S.
“I was going to buy a book from one of your recommendations. If I had to pick one to start with that would be the most helpful in trading the Emini using your indicators, which one would you recommend?”
Well, to be perfectly honest, I haven’t read a good trading book in about 2 years. As for reading anything about the “Better” indicators – other than the website, there’s nothing out there. However, Master the Markets by Tom Williams is still a classic and in the Wyckoff tradition, from which I draw heavily.
These days I’m more concerned (and reading) about the big, big picture and what seismic shifts are underway. It’s very easy to be focused on the day-to-day and making my 4 points – meanwhile the US Dollar goes to near-zero, taxes go exponential and capital controls mean you can’t get your money out. I’m not suggesting that scenario will pan out, but you see what I mean? We’re picking up nickels on the road while the steamroller is bearing down on us.
For me, the big picture is we’re at the end of a debt super-cycle. The first debt explosion was housing (with the exception of Australia and Canada) and banking. We’ve now transferred those losses to the general public via Government. They in turn have blown their own debt bubble even larger and … Well I don’t know – what happens now?
When we’re in uncharted territory – not just the repeat of a “normal” 4-5 year cyclical recession – we have to look back in history. What happened in the 70s – how do you profit from stagflation? What happened in the 30s – how do you profit from deflation and depression? What happened in Japan – how do you profit from QE and ZIRP? I don’t have the answer but “Devil Take the Hindmost” by Edward Chancellor has the best historic perspective.
For more book suggestions check out my all time list of Best Trading Books.
Quotes of the day …
From Scott D.
“Just a quick note to say thanks for Tuesday’s video. Outstanding instruction and it is really helping me to better understand market action … I’m up 4.25 points this Wednesday morning by 11:10 EDT. I’m getting there, and you’re helping!”
From Alex D.
“Great video Barry both Monday and Tuesday very helpful, like you said trend direction is critical but not always easy to read. Thank you so much for the indicators and the education … I just want you to know you have made a massive difference in my life, and I thank you from the bottom of my heart. I hope you are running Emini-Watch for years to come.”
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