TRENDS

Primary, Intermediate, Short Term

The Global Economic Cycle

Online Trading Academy

2006
The 4 Stages of the Market

Online Trading Academy

2006
4 Stages - Multiple Assets
US Treasuries

1. Huge leverage.

2) 24 hour trading.
“RISK
“RISK APPETITE”
3) Very liquid markets.
ADVERSE”

4) Big trends daily

5) You are trading

GREED economies
= STOCKS UP -
FEAR = BONDS UP - COMMODITIES UP
US DOLLAR UP - BONDS DOWN –
STOCKS DOWN US DOLLAR DOWN
COMMODITIES DOWN
BONDS RISE DURING PERIODS OF FEAR
Online Trading Academy
2006
US Real Estate Cycle
1-1-11
The Cycle Of Market
The Cycle Of Market
Emotions
Emotions

T
The Cycle Of Market
Emotions
Trends
Reviewed 1. Consolidation (supply/demand in balance)
Stages of
2. Up Trend (supply/demand out of balance)
the
3. Consolidation (supply/demand in balance)
Market
4. Down Trend (supply/demand out of balance)
3

2 4

1 1
Trends
Reviewed 1. Consolidation (supply/demand in balance)
4 Stages 2. Up Trend (supply/demand out of balance)
of the 3. Consolidation (supply/demand in balance)
4. Down Trend (supply/demand out of balance)
Market
3 Intermediate Primary
Trend Trend -
Intermediate Trend Down

2 Novice -
Overconfidence
4
Pro – Sell high
Primary News - Good
Trend - Up Greed Hope

1 Hope 1
Fear
Panic
Novice - Pessimism
Pro – Buy Low
News - Negative