Someone with neurosis typically shows excessive anxiety and/or
exhibits indecision with no real objective or identifiable
reasons. Symptoms associated with Neurosis include
insecurity, depression or irrationality.
The media seems to be the perfect example of neurosis
continuously showing anxiety, indecision, and lack of evidence in
their reporting. Check out these headlines from the same
trusted source over the past few days:
- Optimism Drives Euro Higher - 8/6
- ECB President May Need to Apply Unusual, Even Emergency,
Measures - 8/9
- Draghi Lays out Toolkit to Save Eurozone - 8/9
- The Euro Still has a Mountain to Climb - 8/9
First, it is optimism driving the Euro higher, and now it is
time for emergency measures. Then on the same day we
have a report that Draghi has laid out a toolkit to save the
Eurozone, but yet there is also a mountain to climb. Talk
about neurosis, indecision, and irrationality!
There is no way to make rational investment decisions using
these news reports. Even if you tried you would be whipsawed
daily buying and selling as the media repeatedly changed its mind
about the future of the Euro.
One of the problems with the news is it often relies on opinions
and rhetoric that is rife with conflicts of interest and statements
made more for positioning and jawboning than for fact. We
prefer to ignore the neurosis, and use factual and objective
evidence to make trading decisions on the Euro (NYSEArca: FXE) and
other investable assets such as the S&P 500 (NYSEArca: IVV),
long term bonds (NYSEArca: TLT), and commodities (NYSEArca:
SLV).
On 7/1 with the FXE at 125.88, in the ETF Profit Strategy Update
we alerted subscribers that a wonderful short setup in the
Euro was here: "First target for shorts is the red support line
currently around $123.75. Traders can look at buying the EUO
(NYSEArca: EUO) or the newly created EUFX (NYSEArca: EUFX)
ETFs
to short. Once again the risk is small, but reward
potential is large. The mid and long term trends in the Euro
remain bearish." The $123.75 target was exceeded later that
week.
In the chart below, published more recently on 8/5, the Euro
(shown through FXE, its tradable ETF) is in a clearly defined
downtrend and there is no reason at this point to think that
downtrend has ended. On 8/5 with the FXE at 123.05 we posted
an update for our subscribers that a good short opportunity on the
Euro was present. Today the FXE is down to 122.24 and remains
firmly in that downtrend. We also have identified price
levels for our subscribers to place their stops as well as prices
that would identify a more bullish trend change in the Euro.
The
ETF
Profit Strategy Newsletter
filters through the overabundant, unhelpful, and neurotic
media by using comprehensive technical analysis and data based
decision-making techniques to keep us on the right side of the
markets. A few times each week we update our subscribers on
actionable high probability trading setups that also identify risks
and profit targets like those of the Euro and its tradable
ETFs.