Chief Editor

Uncertainty is a great environment for traders who have done their homework and are ready to stalk. Unfortunately for the novice investor and under performing fund managers it may not be so easy to get it right in such times.

Indecision will be more apparent in the markets over coming weeks as the signals of world economic recovery continue to be unclear. That is the way it is with the economic cycles, even though we have become a little better at fine tuning economies and smoothing out the economic peaks and troughs.

This ambiguity will be borne out in the tug of war between bonds and interest rates as I discuss below and we will see short term volatility until that war is won.

Such markets are excellent for futures and options traders and I would highly recommend you to broaden your trading arsenal by developing skills that will enable you to leverage this uncertainty into successful trading. Watch closely the techniques outlined by Wayne in his options articles – techniques that will enable you to manage risk in a very clever way. Noel is focussing on futures this week – yet another avenue for leveraging movements in the markets.

In his article this week, Aaron develops further on his explanation of Elliot Wave. He does this at a relevant time as a number of stocks have moved well over the last few weeks and are now showing some signs of Wave 4 retracement. His treatment of the subject will help you avoid not only following Wave 4 down, but also help you identify when the retracement is complete and the stock is ready to move to a new high.