Jordan Craw

Trading a break of a trend line is one of the oldest technical trading methods around.

Most of us who have researched or applied Elliott Wave Theory will be familiar with the concept of ‘Waves within Waves’ or ‘Cycles within Cycles’.

Currency futures are traded in massive volumes by participants all around the world for a variety of reasons.

This week I want to review a trade on the SPX (S&P 500) that has some properties common to many strong Elliott Wave 4 Buy trades.

In some of my recent articles we have looked at the additional set-up criteria or filters that can be applied to Wave 4 Buy trades.

Bollinger Bands are an indicator that I have discussed in previous articles in Trading Tutors, such as Trading Tutors Issue #76: 24 Sept 2004.

Many of the complex techniques, used in Today’s market analysis, have been practiced since the early part of last century and beyond - well before the advent of computers and trading software.

Following on from last week’s article on XJO options, let’s have a look at some real trades.

You don’t have to travel far into the option world to hear statistics like “70% of all options expire worthless” bounced around. Does this mean every option that expires worthless is a losing position? Of course not! Having said that, we can use this statistic to our advantage.

Now we all know that selling uncovered options can be very dangerous, especially for beginners. The argument for using naked option strategies is that when using options close to expiry, the premium received coupled with time decay will more than cover for any large movements against the position. While this is true, it is not a trading method for the faint hearted.

Recently I haven’t had to go far to hear or see suggestions that the next bull market is already under way. It seems the concerns and pessimism relating to the capitalist world has fallen by the way side in the wake of the Iraq War. One thing the world learnt earlier this century was that war is good for economies. It generates spending across many areas in industry and in turn creates jobs. With the focus shifted back to general affairs now the war is over, corporate America especially needs to ask itself if the reasons for its previous market downturn have actually been alleviated.