| The Penny Sleuth Features: Penny Stocks, Options and High-Growth Opportunities! |  |      | A New Way of Predicting Price Movements
By Abe Cofnas
November 9, 2010
Today I’d like to give you a peek into a new type of analysis I am pioneering.
As a trader, sometimes a string of success can lead to doubts… did we earn these gains, or were they just luck? It’s a fair question, so let’s take a look.
My theory of how to trade currency markets, and binaries in particular, is based on the fact that the markets are not random walks, and they do not move a linear fashion. They behave more like a chemical reaction-diffusion script, a system where the actions of one thing changes under the influence of several others.
Check Out This Canadian Penny Stock! This Canadian penny stock play just won the rights to an estimated $172.5 billion oil bonanza... The profit potential could be enormous for investors who get in early. Resident geologist Byron King has all of the details in this exclusive video presentation. There’s still time to get in...
The biggest mover of the currency market, therefore, is the reaction to economic data releases. This is because the “big money” wants to avoid being on the wrong side of event releases. Instead of acting, they wait. So a lot built-up energy is released as soon as the data comes out.
Lately, the markets have followed this script perfectly. The U.S. elections and then the Federal Open Market Committee’s (FOMC) announcement of a new round of quantitative easing (QE2) combined to be a high-impact event releasing a sort of “sentiment tsunami.”
That’s what’s been spiking the volatility on a number of markets – from stocks to currencies to commodities – and providing ample opportunities for traders.
So how can you get an edge?
As promised, here’s a brief peek into a new type of analysis I’m exploring.
Just like a technical analyst closely examines price movement to detect patterns, I believe we can detect patterns by closely examining word choice.
Consider the FOMC statement that accompanied the QE2 $600 billion asset purchasing decision. I have called these statements, “Drops of Bernanke in a lake of hesitation.” The mental picture turns Ben Bernanke’s words into stones that cause ripples in the market. Since investors pay close attention to these statements, they are very carefully drafted. Every word counts — literally.
Breaking it down, we can see that inflation is used the most frequently (excluding the word “committee,” which is simply a reference to themselves, and articles like “the” and “a”). The words economic and pace are the next most frequent words. The words investment and rates receive only one mention each.
6 Penny Stocks to Own Right Now… Penny Stock Fortunes is giving away SIX penny stock recommendations to all new subscribers! But you must hurry because these plays could explode at any time.
See for yourself. Here is the FOMC word frequency count:
By analyzing the word content, we can detect sentiment in ways not obvious. The actions of the Federal Reserve have inflation as a major parameter that can trigger a change in their position. The economic pace of U.S. growth is a major concern.
The coming era will be a battle of expectations of whether the Federal Reserve can have its cake and eat it, too. Can they trigger just enough inflation (2% target) and stop there? Will QE2 simulate employment growth with an acceptable pace? Stay tuned!
Sincerely,
Abe Cofnas
Gains of 7,500% from This Tiny Research Company? Shocking new presentation reveals urgent wealth build-up. For the chance at the absolute biggest gains, you must act by Midnight Thursday, November 11.
A New Way of Predicting Price Movements is featured at Penny Sleuth.
|
| |  | | |  The Penny Sleuth, a free e-letter, offers independent news and commentary on small cap stocks, options and high growth opportunities. We sent this e-mail to KNUMASSCN@gmail.com because you or someone using your e-mail address subscribed to this service.
Are you having trouble receiving your Penny Sleuth? You can ensure its arrival in your mailbox by: Whitelisting Penny Sleuth.
To end your Penny Sleuth e-mail subscription, click: Unsubscribe.
The Penny Sleuth is your free and independent source for analysis, commentary and news on small cap stocks, options and high growth opportunities. At the Penny Sleuth, we give your our 100% independence pledge. That means that we never receive compensation to talk about any stocks we feature. Our editorial staff never owns a position in any of the stocks we mention at the time of publication. And we only recommend stocks that we come across in our own original research. Our pledge also means that we won't collaborate with companies who don't live up to our independence requirements. Nothing in this e-mail should be considered personalized investment advice. Although our employees may answer your general customer service questions, they are not licensed under securities laws to address your particular investment situation. No communication by our employees to you should be deemed as personalized investment advice. We expressly forbid our writers from having a financial interest in any security recommended to our readers. All of our employees and agents must wait 24 hours after on-line publication or 72 hours after the mailing of a printed-only publication prior to following an initial recommendation. Any investments recommended in this letter should be made only after consulting with your investment advisor and only after reviewing the prospectus or financial statements of the company. © 2010 Agora Financ ial, LLC. All Rights Reserved. Protected by copyright laws of the United States and international treaties. This newsletter may only be used pursuant to the subscription agreement and any reproduction, copying, or redistribution (electronic or otherwise, including on the World Wide Web), in whole or in part, is strictly prohibited without the express written permission of Agora Financial, LLC. 808 Saint Paul Street, Baltimore MD 21202.
| |
No comments:
Post a Comment