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I just got my hands on something
juicy...
We've been talking about technical analysis and being able to
read charts here at Smart Investing Daily for the past
couple of weeks.
One of the easiest ways of
looking at a chart is to identify a trend. Is the stock rising?
Or is the stock falling?
The next easiest way of looking
at charts is through cyclical movements.
For example, people use more
natural gas in the winter and summer to heat and cool their homes. We should
see prices follow that cycle of demand.
You can see prices rise in
winter and summer, and dip in spring and fall.
One thing that cyclical charts
have in common is yearly correlation. What I mean is that this pattern is
repeated year after year.
Here's where things get juicy.
Predicting
the Markets through Technical Analysis
You may have heard of a man
named Paul Tudor Jones. He's the guy who
predicted the stock market crash of 1987. He did it armed only with one
chart.
In fact, this chart was so
successful in predicting the crash that PBS made a documentary showing the
technique that made Jones a millionaire. It's called TRADER: The
Documentary... and there aren't that many copies in existence
anymore. Jones realized he gave his charting secret away, and asked that the
film be destroyed.
But his technique is still out
there, and our own Andy Snyder is now predicting a major market rally by the
end of the year using this same analysis.
With all the doom and gloom --
high unemployment, sour housing market, low consumer
confidence -- you have every right to be skeptical.
In fact, I encourage you to be. If anything good has come out of all this bad
news and even worse economic policy, it's forced investors to question
everything that comes out of Wall Street's and the government's mouth.
But it's hard to argue with what
a chart says.
Andy, who writes for our Insider
newsletter (which you have access to if you subscribe to one of our
services), slipped me a note last week asking me to share his latest research
with you. Here's what he told his readers:
We are in the midst of a very
profitable opportunity. To help prove it, I want to show you something we
published on Aug. 23.
It is part of a letter I sent to
subscibers who will join us at our annual enclave
in Las Vegas in a few weeks.
I hope you already read it:
Times are tough. Stocks are
falling. Risk is rising. And the future is more uncertain than ever. But I
have something you will like. I recently did some research and I realized
things may not be all that bad. The pain we are experiencing right now may
soon lead to a meteoric rise in stock prices. In fact, using a little
historical perspective, from now through the end of the year may be one of
the most lucrative periods in more than a decade.
When I wrote that, the S&P
500 was at 1,123 -- just 4 points above its lowest closing point for the
year.
In the days since, the market has gone up... and up... and
up.
The S&P 500 closed yesterday
up 2.86%. It's now putting in higher lows and establishing a new uptrend.
This is the index over the past month...
I've added Wednesday's price
movement to the chart. Remember, Andy told his readers that the S&P 500
was in for a rally on Aug. 23, just as the index was bouncing off its low.
That's great timing... And
Wednesday's run helped establish the uptrend in the chart.
But this little nip higher could
be just the beginning of a monster rally. Andy
has published a video showing you the spot-on
charting technique pioneered by Paul Tudor Jones. It clearly shows the market
could boom, and that now is the best time to get positioned.
This chart has shown some
serious accuracy over the past year... It's something you definitely need to
see. Access this video here, and get prepared.
Sara Nunnally
Taipan Publishing Group
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Article
originally published here
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