David Buffalo returns to explain advanced trading techniques and analysis. Lots of volatility on low volume. Something magic about Dow 10000? David is seeing approaching divergence in momentum indicators. No real trend until traders back after Labor Day. David discusses FDX as a proxy for good news in the transport sector. Next up is XLF as an example of how to analyze price action to forecast future prices. Price is always your primary indicator. Anything else is a derivative of price. Do we fill the gap in SP500 from May? What is the macro trend you use here to trade? China and the impact from lack of US demand is discussed. Deflationary trigger? What happens with the euro and US exports will ripple back to China.
Vince explores past daily crashes. Can we have another day like that? David explains why. Multi day curbs to extinguish fears? Absolutes are unreal because never is a long time. Could change in capital gains rates cause people to take profits this fall? Vince mentions that Roth conversion may be appropriate for some investors because tax rates may increase. What about real estate here? As an inflation hedge? WWII generation liquidating assets which creates long term opportunity if bought at right price. Gold is demand story now that inflation not on horizon here. David not bearish yet. No major news from neural nets. Drug sector had a few hits. Market action causing David to utilize other time frames and asset classes to generate profits. FOREX is reviewed as a platform for trading profits.
