Posted By: TradersLog

Often times I’m asked what is this thing you call market correlation? People are often confused by new terms as it’s confusing to them and anything that’s confusing will be avoided. Unfortunately it also seems that many traders don’t want to spend the time and effort to learn new techniques, strategies, etc. to bring them up to speed. Their attitude seems to be “just show me where to place the trade and when to exit.” This is the proverbial search for the “Holy Grail” or the “Magic Indicator” that’s never wrong and always works. This is the reason why technical newsletters are always viewed more often that fundamental ones. It’s easier. The attitude seems to be “if I pay you money for your newsletter, then you should tell me where to get in and where to get out.”

I’ve been trading for over 20 years and I can save you a bit of time in this regard.  There is no such reality as a “silver bullet” or “magic indicator”. It just doesn’t exist. There is also no such reality as “easy trading”. In the 1990’s the mindset was you could blow out your account and a Monday but get it back by Wednesday. Whereas there was some measure of truth to this, that is not the case today. Trading is a business pure and simple. It requires time, dedication and hard work. The markets are not forgiving to novice traders and the Smart Money aka institutionals will have no problem taking your money if you’re foolish enough to blindly follow well-meaning advice.

As I mentioned earlier technical newsletters are more in vogue today. Heck, it ’s  easy. All I have to do is read so and so ’s  newsletter, he or she will tell me what to buy, when to buy and at what price to buy it and at the end of the day I’ll make a boatload of money. Whereas most technical newsletters are well meaning, the problem is at t he time that they make the call  they don’t have all the information available. In other words they ignore fundamental analysis. They don’t look at things like economic news, global geopolitical events that could drive the market in either direction. Even the services that offer a call to your iPhone can’t time the market properly  as by the time you get the call and react to it the market has already moved against you. Auto Trading services? Very expensive and not economically feasible.

In my own newsletter Market Tea Leaves I endeavor to make the trader as self-sufficient as possible by teaching them a strategy called Market Correlation. Let me make this very clear to the reader: Market Correlation is Market Direction. It endeavors to teach the trader as to where the overall direction can go for the trading day ahead. It is issued daily as the markets change daily. Is it infallible? Nothing is infallible and anyone who says otherwise isn’t being truthful with you and it doesn’t matter if you trade stocks, bonds, options or forex. Anything but anything can happen in the course of a trading day. We  do not make calls on individual stocks, bonds, futures, etc.  We give a call on overall market direction for that day via a bias. That bias will be one of three: Upside, Downside or Neutral. A neutral bias means the markets could go in any direction on that day. We also provide the trader on what to look for on that trading day and we do this 3 hours before the US markets open. We start our analysis the night before but don’t publish until the following day. We view the overseas markets, the key futures instruments that will drive the markets: US Dollar, Crude, Bonds, Indices and Gold and any news items to make a determination and we do this starting at 4 AM EST.  We also provide a Market Bias video that explains why we came up with the bias given for that day. This is only available to subscribers.

There is an old saying: no one looks after your money better than you do and in this market that saying is never truer. The markets have become increasingly vicious in recent times. So the choice is yours. You can rely  on technical advice and follow it blindly or be proactive and take command of your financial  future.