THE MVET WAY CEMN NEWSLETTER_APR_MAY_JUNE_2017

Newsletter Title

Business Name Investing In the

Financial Markets

Volume 1, Issue 1

By: Jennifer Glick

Newsletter Date

Part I

The financial markets appear to be complicated, in fact too complicated for most individuals to participate in without a sound financial advi- sor. However, many people are taking their fi- nancial future into their hands by learning a few things that help them make better decisions re- garding their investments. Good financial advisors have their value, estate planning, planning for college for your children, retirement plans and more. However, most are not traders. Many have been taught to use mod- els to project investment outcomes in the finan- cial markets, and for years they have worked for the long term time frame. Not so much in mod- ern times, say for the past 17 years since 2000 stock market correction better known as the dot- com crash 17 years ago. In the 80’s and 90”s baby boomers were raising their children, putting them through school, spending money on housing, cars, toys, clothes, etc. driving the economy higher which in turn drove the banking system, business start-ups and real estate higher. Economist refers to the 90’s as the roaring 90’s markets seem to go straight up until bubbles began popping hitting the tech sector hard. The year 2000 began the 17-year long sideways market. In fact, only re- cently has the NASDAQ broke above 2000 high. It has given many market professionals hope that the 17-year long sideways market is over; but, only time will tell. We can expect extreme bullishness is moving forward if this sideways market is proven fin- ished. Bullishness means a new bull market, great opportunities for business start-ups and economic growth. Even traditional investment vehicles will work again for the long term time frame. However, now is not the time to take a chance investing in traditional slow retail invest- ment vehicles. The financial markets need to prove to us they will hold this breakout first. Technical analyst like myself, are trained to read charts of individual companies as well as major market indices. There are specific trading and investing rules that must to followed. At this very moment in time,

analysts are waiting to get confirmation of this bullish breakout in the major markets and indi- vidual stocks. If markets confirm, analysts will then get aggressive in the stock market putting on new investments in specific sectors ready for long term growth. It would be a thrilling time to participate in the financial markets. However, what if the major markets fail to give technical breakout signals? Markets could do this by moving lower back down into the 17-year long sideways market range. Then we have to be cautious and keep our investing short term. If technical levels break to the upside or downside, it is because we may see more erosion in the markets, and we will swing trade, invest in posi- tions for shorter time frames, no long term posi- tions. Once a major support level is considered broken, stocks will tend to get volatile and sell off in big moves down. We do not panic here, no not at all. Instead, we get aggressively trading the downside as these are rare opportunities to grow our portfolio investing funds in ways that allow us to make gains from the downside moves. In fact, since markets fall faster than they tend to move higher, we can make great returns quicker which investing in the downside. As a Retail Investor, your funds may be tied up into an investment vehicle that does not allow you to participate in downside investing. In other words, you may only be able to make money as markets move higher. Some investment vehi- cles for retail clients do not allow participating with options using them as protection for your stock and leverage. Many financial advisors do not understand the intricacy of using op- tions. Asking them too many questions about options can lead to them giving answers like “options are too risky” we do not use them. It is true, there is risk involved, but it is also true that retail clients have been left in the dark for years from participating in stock options. Options have been a nice little secret the wealthy have been using for years. Wouldn’t you like to have the ability to make money when stocks move up and down?

Don’t just Trade….

Trade to Win

The MVET Way

In Part 2 we will continue to discuss the fi- nancial markets.