Forex: Online Forex Trading News, Tips, Signals

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For the last trading week of July 2011:

Market Direction

The last trading week of July has ended, and it proved to be a very tricky week.

First of all, I would recommend this Daily Wrap video from IBD that they did for Thursday, in which they not only changed their market outlook from “uptrend” to “correction”, but also offered some very helpful advice in how to handle a tricky market like this.

Stocks fell Friday for a fifth straight day on the S&P 500 and a sixth decline in a row on the NYSE composite, and the Nasdaq is the only major index that delivered an up day last week, and that was a lackluster 0.1% gain. For the week, the S&P 500 and the NYSE composite each fell 3.9%, while the Nasdaq dropped 3.6%. The average move on the IBD 50 was a 6% loss.

Economic data Friday fed the gloomy mood. Moody’s said it was reviewing Spain’s debt for a possible downgrade. Second-quarter GDP growth in the U.S. fell short of views. The Reuters-University of Michigan consumer sentiment index also missed estimates. The Chicago Purchasing Managers Index, though, came in better than expected.

Meanwhile, the debt-ceiling standoff persisted in Washington. While the media are spotlighting the issue, a compromise may or may not solve the market’s problems. It could open the door to a rally, or it could be judged an irrelevant kicking of the can down the road. There is no way to know in advance.

The week’s action did not inspire confidence. Gold was one of the better performers last week, yet although gold shot to a new high for the week, gold and silver mining stocks provided no better shelter than other stocks. The gold mining industry group in the US skidded 6.3% for the week.

This kind of violent action makes this correction an especially dangerous animal. An investor who gets caught in a big gap-down move is faced with a painful giveback or outright loss.

Patience and cash constitute the best combination right now. Historically, August has been one of the better months for successful follow-through days.

Stock Picks

Due to the horrible market conditions right now, most of the stocks I have mentioned fell horribly, but perhaps one that is still worth mentioning is the Chinese giant Baidu (BIDU).

Baidu also fell for three straight days, but it still holds above the former buying level. Moreover, selling volume in these days is not as heavy as in other stocks. These technical signs show that Baidu still have some strength to show in the future.

Another stock that is holding up quite well is Perrigo (PRGO).

The generic drugs leader benefits from the industry group strength as well as its leadership in the group that, despite of the heavy selling this week, it has resisted quite successfully, so it’s worth to keep an eye on. Perrigo will report results on 8th August soon.

Despite of the horrible market correction right now, I guess this other medical stock should be brought to your attention.

Catalyst Health Solutions (CHSI) is another stock that stands firm in the unfavourable market condition. Moreover, it is now forming a Cup with Handle pattern, which means that buying opportunity could be near. However, it will report result on 2nd August, and you shall never buy right before an earning release, because a disappointment could cause a lot of trouble.

And here is another medical stock below:

In addition to being another leader in the medical industry, Alexion Pharmaceuticals (ALXN) is in the unusual position of being poised to get a new drug approval based on phase two test results, not the typical three. Phase two trials commonly test a drug on just a small group of patients, but Alexion expects the FDA will approve a new use for its only drug, Soliris, on the basis of positive phase two results.

BUT REMEMBER: it is always dangerous to enter the market in a correction, so patience is worth having in the game of investing.

The strategy tester freezes after I test an ea a certain amount of time. What could be the cause of this? I was just getting used to one of my ea’s and it was becomming profitable and then strategy tester started freezing on this ea. However it works normal on other ea.

Does anyone in this forum can replace the oscillator’s cycle identifier.mq4 to mt5?

Recently I noticed that a number of significant benefits & Advantages

to the mt5 Even better than mt4.

The problem is I cant combine the oscillator in my method,

Because different programming language.

Can anyone help me with this problem please