It was a wild week of trading, to say the least! I’m glad we made it to the weekend so we can pause and update our charts and catch a breath! Next week is expected to be a very low volume week because the 4th of July falls directly in the middle – on Wednesday! …
I wanted to highlight a blog and service some of you may not be aware of yet. Paul Castro is an author and investment director at Vestopia.com and he provides timely analysis on the market and news events, including his recent post “Tick-Tock” which is definitely worth consideration. In the post, Mr. Castro discusses various…
Stockbee posted a thought-provoking column entitled “What are Your Goals in Trading?” that addresses the age-old question, “Should I trade to be right or should I trade to make money?” At first glance, and to many new traders, it would seem these two concepts are irrelevant because you make money when you are right… don’t…
Chris Perruna recently posted on the topic of Position Sizing and Expectancy (as discussed in great detail by Dr. Van Tharp – book reference included in post). Attached are a few quotes from the post: Most traders look for three major factors when developing a system: How much to trade on each position The right…
I know it’s a question on everyone’s mind, especially if you are new to trading. “How Can I learn how to Trade?!” or something of the like. Dr. Steenbarger provided a brief post with links to other resources to help you get started on your journey, or help give direction to current travelers. He begins…
It’s rare when a particular moving average will capture (halt) the price action exactly, but these averages often serve as areas of support or resistance. Today’s action was no exception; in fact, the Dow tagged the 50 period MA and the Nasdaq ‘tagged’ the average almost to the penny before rallying sharply to close up…
Monday was an absolutely wild day for traders, with a large volatility price swing. As hectic as the trading day was, an interesting pattern emerged. The intraday low coincided with the rising 50 EMA and with the round number 13,300. This was a significant support area. The high of the day coincided with the flattening…
I had to point the Blackstone IPO (BX) chart out to readers, simply for its major irony to me. I watched a television report where it showed a montage of news sources that were literally giddy with excitement discussing the Blackstone Financial Group IPO and how it will make investors so much money and how…
Dr. Steenbarger recently posted on the topic of “Trading Regimes,” which are ‘relationships which exist between one or more variables and prospective price changes in a trading instrument.’ The relationships tend to be temporary, and one must discover various relationships and be open to the possibility of variance in analysis. Rather, regimes should be analyzed…
Here are some daily and weekly views of some of the major indexes for your study: Daily Charts of the Dow and Russell 2000: Weekly Charts of the Russell and S&P 500: As an added bonus, consider pulling trade ideas from these strongest industries (via Prophet.net) over the last three months: Notice the major jump…