Market Snapshot - Nov/Dec 2011

Lachlan McPherson provides up-to-date market analysis: a short delight.

Any trader who has analysed global markets over the last few months will be well aware of short-selling opportunities surrounding cyclical equity performance. In fact, even the eternal bulls would have been tempted to convert to the dark side for a short time, particularly as there have been virtually no bullish signs to indicate ways to achieve trading profits from an all-long strategy. Even gold has been reaching much-discussed technical barriers. So where were the best places to put your hard-working trading dollars in September? More importantly, what can we expect for the remainder of 2011 and into 2012?
Elliott Wave traders are aware of converging signals across a number of major US and Australian companies. An integrated approach to trading outlines several interesting shorting opportunities.
Whether it’s through basic technical analysis of support and resistance levels and short-term trend analysis, or more complex measures combining advanced trading methods, traders are aware of immediate market direction and the global headwinds affecting today’s economic environment. An increase in bearish sentiment has brought about cyclical opportunities that are not new to today’s breed of ‘recession savvy’ investors. Whether you’re trading CFDs, options or currencies, the hardest part has been pulling the trigger. Coming to terms with the fact that markets will head lower can be one of the greatest difficulties to embracing a short-selling strategy. We can either profit from the slide, or not...

Excerpted from an article originally published in the Nov/Dec 2011 issue of YourTradingEdge magazine. All rights reserved. © Copyright 2011, Your Media Edge Pty Ltd.
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