The signs have already formed that a major stock market crash possibly already started now in 2011 is very likely. Whenever a stock market crash occurs it is always perceived as a negative event. Recently in the May 2010 stock market crash it was reported that the entire crash was caused by human error when in fact the so called “crash” happened precisely on target at the top of a perfect Elliott Wave pattern when natural forces across financial markets were already poised for a sudden fall in price.
Is it possible for any financial market to go straight up forever without corrections? According to the history of all markets that have been charted there has always been a pattern and cycle of trends followed by corrections on all time frames long and short.
In Forex trading every movement in either direction of any currency pair is a profit opportunity and it makes no difference which direction the market is moving. However, in the stock market the emotional bias is always toward buying and when the price falls it is perceived as a tragedy rather than a part of natural cycles.
Fortunately, when the stock market goes down the value of the U.S. dollar tends to go up in inverse correlation. Right now there is a lot of evidence that the U.S. dollar could strengthen against other currencies. And ironically some currency analysts are predicting another big drop for the Euro over the next year. Therefore the Euro vs. the dollar (EUR/USD) could produce an extremely lucrative shorting opportunity for long term trading.
The Australian dollar also somewhat follows the U.S. stock market in direct correlation and Forex traders now see the possibility of a long term downtrend starting now for the Aussie. Yen pairs somewhat follow the value of the dollar so that if the USD/JPY is going up other Yen pairs may also be going up.
What is most important about this video is the suggestion that there is a missing piece of the picture not totally revealed by mainstream technical analysis and Elliott Wave Theory analysis that can enable traders of stocks, commodities, futures and Forex to develop a powerful and lucrative skill of entering and exiting trades on all time frames long and short with a high probability of winning consistently over time and maintaining consistent increase in capital.
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