The Macro Market Monitor

Explores resource, commodity and currency market influences on stocks and the economy. Each month we separate leaders from laggards, explore how the relationships between various markets are changing and how to profit from it.

  • In search of the magic market mix

    In This Issue:

    In search of the magic market mix
    Cup of chart patterns with an ounce fundamentals?
    Not being late for the gravy train
    Exit signs – Knowing what to look for and when...
    Get Zanger's list of Ten Key Stock Considerations free.
    Suggested Reading – Useful Resources

    To stay tuned to the latest chart and market updates, please check our website version of this newsletter at http://tradesystemguru.com/content/blogcategory/54/88/

    Quote of the Month:

    'Economic history is a never-ending series of episodes based on falsehoods and lies, not truths. It represents the path to big money. The object is to recognize the trend whose premise is false, ride that trend, and step off before it is discredited.' - George Soros

    (Readers may recognize that this quote is not new - it's is one of my favorites and one that I repeat to myself before trading.) In search of the magic market recipe

    When stock prices have been rising and the economy is healthy, it is easy to become complacent. In a strong bull market, all you really have to do is buy to make money. Traders hunt for stocks that have the best momentum plays. Fundamental investors look for stocks that represent the best value based on the assumption that the market is rational and that money gravitates to stocks that have the best revenues and earnings.

    ...
  • Interview with top stock trader Dan Zanger (continued)

    In This Issue:

    Interview with top stock trader Dan Zanger (continued)
    Bull and bear anatomies revealed
    Profiting from the money wave
    Hunting for the new cycle leaders
    Getting real on stock values
    Sovereign debt fear and loathing returns...
    Annual ChartPattern Seminar in Miami
    Riding the Great Reflation rollercoaster


    Dan Zanger interview (part 2)

    In part 1 of our interview with record-holding stock trader Dan Zanger last month, we discussed the period from 2000-2010 which marked the worst decade in history for stock market performance. He also began outlining when chart patterns work best and when they don't.

    In part 2 of our interview, we continue our discussion and learn what Dan is seeing in markets and what signals he is looking for to identify the next big top and bottom.

    ...
  • Special Issue This Month!

    In This Issue:

    Special Issue This Month!
    Interview with world record stock trader Dan Zanger
    Trading chart patterns and the market - What does he see?
    Market leaders on the move
    Fertilizer plays
    Rhyming rallies
    Déjà vu 2004
    Do chart patterns still work?
    Have a stock trading question for Dan?

    An interview with top stock trader Dan Zanger

    Like many of you, I first read about Dan Zanger in a December 2000 Fortune article entitled My Stocks are Up 10,000! describing how former contractor Zanger had parlayed $10,775 from the sale of his Porsche into stock market winnings of $18 million in about as many months. His approach may be simple but it is anything but easy. He uses chart patterns and volume with the occasional indicator to anticipate price movement. Dan continued to build this stock bounty into an incredible $42 million in a 2 year period during the Internet bubble and bear market that followed.

    My first article about Dan was an interview published in Technical Analysis of Stocks and Commodities magazine (April 2003 - see link at the end of the interview) in which he explained that even though he'd been out of the media spotlight since 2000, he was still very much alive and on target. I have since written about him a number of times and he continues to amaze his audience of newsletter subscribers, seminar attendees and traders who avidly follow in his ‘balls to the wall' approach to trading stocks.

    ...
  • A winter for sports fans... our report from the Olympics

    In This Issue:

    Equities after the trend break... what next?
    Transport indicators still pointing down
    Employment MIA...
    Carry trade weakens further
    Chinese stocks continue to struggle
    Commodity overview
    A winter for sports fans... our report from the Olympics
    Interesting links

    Equities after the trend break... what's next?

    Last month we discussed the January Barometer that says as goes January so goes the rest of the year for the S&P500. After an early burst, the S&P500 lost momentum and ended the first month of the year down 6.5% from its December close. Since 1950, a negative January has correctly forecasted a down year 100% of the time for the index according to The Stock Traders' Almanac 2010. As any trader worth his or her salt knows, one indicator does not a trading system make but this is not a positive omen for markets going forward.

    ...
  • Are equities getting long in the tooth?

    In This Issue:

    Are equities getting long in the tooth?
    The pros and cons of owning gold
    Bulk dry shipments and rail traffic trending lower but...
    Economic charts show improvement... that is except employment
    Carry trade update
    Chinese stocks still weak
    Market overview
    Interesting Stories...

    Last month, we discussed the importance of the Santa Claus rally in the last five trading days of the year and first two of the New Year. Although the last five days of 2009 were negative for the S&P500, the rally was saved thanks to strong performance in the first two trading days of 2010 helping the index post a net gain of 1.4% over the seven-day period. As we mentioned, a positive Santa rally bodes well for a positive close in 2010.

    ...
  • Trading places - Gold and the dollar make the switch

    In This Issue:
    Trading places - Gold and the dollar make the switch
    Carry trades in trouble?
    Baltic Dry Index showing weakness
    Global Stock Markets Challenged

    This month's newsletter will be shorter than usual as it is a time of the year that many traders take holidays and volumes are lower than usual.

    However, there is one annual event worth mentioning. It's coming on Christmas and the much hoped for Santa Claus rally is due - one that has been good for an average 1.4% gain during the period of the last five days of the year and first two of the New Year since 1969 according to the Stock Trader's Almanac. But if it fails to appear, watch out. History has not been kind to stocks in the years following a Santa Claus rally miss.

    ...
  • Buffett’s 'Desert-Island Indicator' Update

    In This Issue:

    Buffett’s Desert-Island Indicator Update
    Rail traffic – Resurging product demand?
    Baltic Dry Index on the move…
    One “mother” of a trade
    Carry trade elephant in the room?
    Chart updates

    Last month we took a look at the indicator Warren Buffett would use if he could only pick one. This month we take a look at slightly different perspective with monthly data from the Association of American Railroads (AAR).

     

    ...
  • Warren Buffett’s “Desert-Island Indicator”

    In This Issue:

    Warren Buffett's 'Desert-Island Indicator'
    So what's the WBDII saying?
    Doing the stock-crude-trade polka
    Of bonds, stocks, commodities and the buck
    What does it all mean for markets ahead?

    Last month, we examined the four major global stock indexes with specific focus on the Chinese Shanghai Composite Index (SSE) to see what they might tell us about where U.S. stocks were headed. The SSE has just come off a 20+% correction and is again moving higher. We also explored the relationship between the carry trade and stocks with specific focus on the New Zealand dollar/Japanese yen cross (NZD-JPY) which led the SPX at the 2007 peak and off the March 2009 lows.

    ...
  • Inaugural Issue - Markets on the move…

    Our goal with the Macro Market Monitor is to keep you posted on key global market changes as they unfold that have the potential to impact your portfolios. If we’ve learned anything in the last two years it’s that when trouble strikes, all...
  • Disclaimer

    The Macro Market Monitor obtains information from sources deemed to be reliable; however, The Macro Market Monitor does not guarantee the accuracy of any of the information provided. The Macro Market Monitor makes no warranties, expressed or implied,...