Combining Macro & Technical Analysis to Produce Winning Trades.

Everyone wants winning trades -- and the best chance of getting them is when the forces in favor of the trade converge. Identifying these convergences is where Mike Paulenoff is best! Combining macro and technical analysis, Mike will put out a trade only when the macro environment is as attractive as the chart. For example, he recently traded Nissan (NSANY) to capitalize on Japan's depreciating yen and its benefits for exports (+3.52%). And the chart itself needs to have a number of a confirming signals -- the right pattern and relative strength indicators, for example -- including confirmation in different timeframes.

It's all about perspective. When the big picture of the sector or asset class -- or of the chart, for that matter -- is aligned with the expected move, the probability of a successful trade is greatest. Mike recently bought Akamai (AKAM), on January 7, as a study of its 21-23 week cycle lows supported reasons to believe it had just entered a new up-cycle. See chart.. Rumors of it being a digital media takeover target didn't hurt matters either. The stock rose nearly 10% over the next 10 days.

In another example, bullish on Europe's export potential due to demand from China and a declining euro, and desiring diversification into the core of Europe, Mike bought the iShares MSCI Germany Index ETF (EWG) on January 10. He noted, "While the EWG has experienced a 5-6% decline during the past week, my pattern analysis argues that all of the action off of the Nov 4 high at 24.92 represents a sideways, bullish digestion period. When complete this should resolve in another thrust to the upside that projects to 27.00-plus in a resumption of the larger bull leg off the May 2010 low." The stock went on to retest the November high.

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