I know the headline gives it away, but a positive momentum divergence is clearly forming on the US Dollar Index, as evidenced by the 3/10 momentum oscillator and a “Swing Chart” reading. The dollar index recently made new lows, which hit the newswaves rapidly, but from a technical perspective, we have at least three bullish…
In the past, I have provided individual site links with a short summary/analysis designed for each link. Now, because I am reading more blogs and finding many more high quality links, I’ve decided to offer a few posts containing multiple links with fewer summaries per link. Here are a few links that are definately worth…
The Author at Simply Options Trading recently provided five professional links and two blog links regarding Sector Rotation Theory and I wanted to direct you to the site to check out those resources. I won’t steal the thunder by reposting the links, but will advocate you to visit the site and glance over a few other posts…
Prospectus at Move the Markets recently detailed entry, management, and exit (by stop) of a trade in RIMM. The post highlights the detailed process from set-up, entry, and other aspects and then concludes with a nice explanation of the lesson learned from the experience that resulted in a 1-R loss due to stop-loss placement. Prospectus…
We’ve all read the headlines today – the Dow gained 280 points, a feat which hasn’t happened in four years. The bulls mauled the bears today, and the buying pressure far outweighed the selling pressure. All major indexes, with the exception of the Russell 2000 (Small cap) broke to new highs, the S&P 500 and…
Dr. Steenbarger at Traderfeed listed (and explained) Ten Principles of Short-Term Trading that are applicable to all types of traders. Dr. Brett writes: “There is much more to markets than your market, and there is much more to markets than price alone. Observing the dynamics of market behavior opens the door to strategies that exploit…
Have you ever been frustrated by a stock? Of course you have. I like to keep a separate paper file of stocks that just blow people’s minds and expectations and generally defy all common expectations (from a technical analysis standpoint). Not only is it a fun activity to me, but it helps me relieve stress…
Today’s market action shouldn’t have surprised active traders. Why? The indexes were showing short-term overbought conditions as well as an overextension in oscillators, combined with the testing of a newly established trading range (upper boundary). Volatility bands also showed odds strongly favored a retest of the midlines. It is frustrating for new traders to accept…
Bill Luby at the VIX and More blog posted a three-part resource and his thoughts regarding how to use the Volatility Index as a market timing tool. Specifically, he discusses how he uses its readings to trade the S&P 500 exchange traded fund SPY. His concluding thoughts caught my attention: “…I have increasingly become convinced…
Have you ever wondered why you have a difficult time applying what you learned in your peaceful room to the actual frenzy of active trading? Dr. Steenbarger discusses how to take what we study and analyze in quiet times (when the market is closed) and apply that knowledge properly when the market is open and…