Well I am back from vacation, after a tour of Europe covering Switzerland, Austria and Hungary. For anyone visiting Europe, especially Austria I would highly recommend visiting Krems an Der Donau (Krems on the Danube) especially the beautiful village of Dürnstein, which is overlooked by a castle where King Richard the 1st of England was held prisoner for a ransom of 35,000 kilos of silver by the daring Austrians.

Rested and eager to catch up with the latest developments in the Stock Market I was relieved to see that my last market update on the 5th of August was indeed very timely.
I suggested that the market was showing signs of slowing and that you would need to have a contingency plan ready.
- If price breaks below the 200 day MA – move to cash or go short (two days after my report price broke temporarily below the 200 day MA & 3 days later we saw a huge 2.82% plunge through the 200 day MA)
- If price rests on the 200 day MA and pauses for breath, then starts to advance, go long and look for higher volume. (for 4 days the price did pause for breath, before plunging downwards)
- We may see some sideways movement over the next few weeks, so maybe a good time to take a break. (the sideways consolidation lasted 4 days before the move down)
Since my last note the SP-500 is down over 5.3% and has resumed a short term down-trend, which adds to it’s medium term and long term down-trends. Down is the direction of the bear.
How can I predict the stock market direction?
It is not rocket science! You can do it too!
However, it does require learning technical analysis. The key is to use the right mix of time frames, indicators and combine this with the techniques of spotting early divergences in key Price & Price Volume Indicators.
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What a day!
June 15th 2010 was a big day in the US Markets, with the Dow Jones Industrials (DJ-30), Standard & Poors 500 (SP-500) and the Russell 3000 (RUA-X) registering an average a 2.27% gain.
I mentioned in a previous market update, that we needed to look out for a change in the market signals to tell us if the downtrend was about to end. Especially we needed to look for:
- Price breaking through the 200 day moving average
- Positive divergences in the indicators
- Be careful if the S&P breaks below 1044
Well how good was the advice?
Here is an updated chart to show you the current situation. Here we will focus on the Russell 3000.

Positive Notes on the Russell 3000 chart.
- Price broke out above the 200 day moving average yesterday (dashed line)
- Price also broke out above the horizontal resistance line. The price may yet fall back to rest around this mark but not fall through it. Breaking back down below it would indicate a resumption of the downtrend, or at least a continuation of the sideways consolidation pattern.
- MACD is moving strongly positive with another new peak.
- RSI is crossing over the 14 day MA of the RSI, strongly.
Negatives Notes on the Russell 3000 chart.
- If we look at the chart on a longer term view we can see that there is the possibility of a Head and Shoulders Top forming. Be careful here! A move up to the 680 mark with a failure to break through it could constitute the final shoulder in the head and shoulder pattern. However do not forget that Volume has an important part to play in a Head and Shoulders Pattern.
- Beware the market is very volatile at the moment, it is also very sensitive to news, especially bad news. Take this into consideration when trading.
Conclusion.
This could be the start of a new short term uptrend, leading to another leg up if the 680 mark or the January 2010 high is surpassed. Now may be a good time to start buying, but be wary of a break down of price through the most recent horizontal resistance line (now a support line) at 654.
Happy trading!
To your success.
I received a question from a new member today after he read the post about Volume and Supply & Demand.
I was so touched with the question I decided to write a post to try and answer his question.
So firstly I would like to welcome Deepak to the club. Here is his question.
“sir,
i have read about volume and other tools , which u mentioned above. but fact is that , in share market i can not believe any single tool. bcoz i learnt this course last year . since then i have been trying and hard working to learn technical course , i checked many tools of it but not useful till now. so sir my request to u that u may provide any one techniq or tools by which i can earn some mony . bcoz i lost much money in share market and so on. i m waiting ur rply sir” Deepak.
So what is the single way to make money in the stock market?
Dear Deepak,
I completely understand where you are coming from. I too have lost a lot of money in the stock market, back in 2000 when I was younger, fresher and more eager to gamble. I also attended a Stock Market Training Seminar in 2000, it cost me nearly $3000 (actually British Pounds as I am English), and I really thought I was a hot shot. In the seminar it was only me and 2000 other people. You can imagine how much the famous trader made out of teaching his skills.
Anyway, I took notes, revised and started to trade, heavily, every day multiple trades. I saw big winners, but I also many many losers. The only thing that stopped me completely wiping out my remaining portfolio was my ability to say “enough is enough” and pull out with the remaining cash I had.
I then took a trajectory of deep knowledge acquisition. I studied and experimented more intensely with the stock market than with anything else I have ever done, including my degree in business and all my schooling rolled up into one. After 10 years, hundreds of books, heaven knows how many trades, I finally get it. To prove it I took the IFTA Technical Analyst exam. This required some heavy duty reading and deep contemplation before it was all absorbed. But I passed first time.
I now trade quite well, I like to think. I can assess the direction of the overall market and really understand what makes the market move like it does.
You asked me for a single strategy so you can start making money. You asked me for a single tool to use to enable you to recoup your losses.
The single strategy to make money on the stock market.
No matter what the con-men, penny stock newsletter writers or gurus tell you, I can really tell you this. There is only one way to make money in the “share market / stock market”. Education!
I believe that the future of the individual is in their hands not mine. This is why I have written over a number of years the Liberated Stock Trader Academy FREE training course. It is a great starting point to learn about what matters. Not just Technical Analysis, but Fundamental Analysis also.
But there are so many things that they never teach you in a Stock Trading seminar. They like to focus on chart patterns and indicators, like they are the holy grail. But if you really want to make money in the stock market and understand why and how the market moves the way it does, you need to understand the Fundamentals. By that I mean:
- the business climate
- market cycles
- economics
- monetary and fiscal policy
- the role of the government and central banks in the fate of the stock market
Combining a solid knowledge of the fundamentals of business economics with technical analysis is the key. Only then can you understand if the business climate is worsening what affect will it have on the stock market.
The single tool to make money in the stock market.
As you are probably aware, I am also a fan of Technical Analysis, the use of charts. But I am not a purist. I really understand that the greatest appreciation of a chart only comes in combination with a solid understanding of Fundamentals also.
The single tool is non-existent.
However, there is a combination of tools that works. Once you have a grasp of why the market moves in a certain direction (Economics and Governments), and an understanding of the way it moves (Cycles & Waves), then you can interpret charts (Technical Analysis) in a whole new way. Understanding “Supply and Demand” within a given economic climate is critical.
Then we can combine Price, Trends, Volume and the Price Volume relationship to give us something akin to a true visualization of what may happen. This will put you in the top 5% of stock market investors.
The single tool is the combination of Fundamentals and Technical Analysis.
This probably sounds like a monstrous amount of information.
This is why I created the Liberated Stock Trader PRO Training. It is absolutely unique. With 16 hours of intensive video, and a full book to back up the learning experience. You will have an absolutely solid grasp of everything I have discussed here.
What is also worth noting is that it is selling at less that 1/10th of the cost of a weekend seminar, and at less than a single losing trade. If you avoid a single losing trading in the market because of my training, you have made a profit.
Why is it so inexpensive? Because I am using the power of the internet to deliver it. I do not need to hire seminar venues, print DVD’s, publish a book on paper, or fly to exotic venues. You simply get a intensive training course direct on your PC, Mac or iPhone.
After this training course you will understand. Even if you need to repeat it many times. You can. I know how it is, I have re-read so many books and experimented so many times before it all sank in. What I can guarantee is that I only provide you the most important knowledge in my training, so in 16 hours your will have an excellent understanding of everything you will need to know.
So my advice is education. If not with me with someone else. But trust me, you will not get better value training than at Liberated Stock Trader.
Deepak, I am completely with you. Your question reminded me of why I have dedicated years of my life to this cause.
My mission states, “your future in your hands” and “take control of your destiny” for a reason.
I am on your side. Do not believe the big Wall Street propaganda merchants, do not believe the news, do not follow gurus or penny stocks newsletters. Believe in yourself. Take a time out, learn, and then conquer the market.
Take the Liberated Stock Trader PRO Course you will not be disappointed.
Thanks you for your question, it reminded me of why I spend so many hours doing what I do.
Barry

Name: Barry D. Moore
Bio: Certified Technical Analyst (Stock Market Technical Analyst), Full Member of Society of Technical Analysts (STA) Level II CFTe (Certified Financial Technician), independent trader, author, trainer & blogger.