Murray Dawes

Murray Dawes is the Editor of Alpha Wave Trader and contributing Editor at Money Morning. He was one of five, from 5,000 applicants, chosen for a graduate position with the Swiss Banking Corporation — now part of banking giant UBS. The bosses quickly cottoned on to his potential and pushed him up the ranks as a futures broker on the floors of the Sydney Futures Exchange. Murray later broke out on his own, and developed custom trading systems to trade leveraged financial instruments like futures. Due to his success, Murray became the ‘hired gun’ trader for Australia’s rich and famous. Today, Murray runs a trading service through Port Phillip Publishing to help everyday Aussie investors use his advanced trading methods.

Rare Earth Comeback?

Rare earths went through the roof in 2011, creating a short-lived spike in a lot of rare earth related stocks. That rally fell back to Earth with a thud, and rare earth stocks have all suffered a huge correction in their prices over the last few years with a few false starts all being snuffed out.

How to Avoid Being Burned by the Stock Market

Fundamental analysis is incredibly important. I am not one of those purists who think that charts are all you need. I spend most of my time doing fundamental analysis because my technical analysis theory and risk management processes are set in stone.

The First Piece of the Jigsaw Puzzle

Whether markets are range-bound or trending, there are certain areas where reversals often occur and there are various ‘Points of Control’ around which the market oscillates. There are ratios based on the size of ranges that inform future price action both internally and externally from the range.

East Coast Gas Shortage

The coming gas shortage on the east coast of Australia is getting plenty of attention in the media recently, so I thought I’d spend today having a look at a few companies that could benefit.

The Rally Isn’t Dead Yet

The quarterly charts are still pointing to the possibility of at least a balancing up correction in prices back to the middle of the recent range of around 2650 (7% below current prices). But the quarterly chart can take a long time to play out, so we must focus in on the shorter-term charts to find trading opportunities.

Market Shrugs after the Fed Folds

There are now a lot of ducks lined up for a short sharp fall in the S&P 500 towards 2650. I think there is the prospect that prices could eventually fall a lot lower than that, but that’s all conjecture at this point.

Time to Turn Bullish on Volatility?

Last year in the week after Match quad witching the S&P 500 fell 6.5%. If you look at the last 30 years of returns following March quad witching the average return is negative, so it makes sense to consider whether volatility may pick up in the immediate future.

S&P 500 Respects the Sell Zone

By understanding how waves develop and where they often see reversals, you can start to build a trading strategy that aims to capitalise on this process. As I have described for you many times, the best approach I have found is to work your way into a cheap straddle by buying out of the money puts (if you are expecting a correction) with a strike price at the expected targets.

Financials Entering the Sell Zone

The Financials Index [ASX:XFJ] in Australia has seen some serious weakness over the past few years. Property markets in Australia are rapidly coming off the boil so the engine room of bank profitability is slowing from its breakneck pace of the past decade.
Money Morning Australia