Last week was a runaway win for the bulls, thanks to the Federal Reserve’s decision to drop interest rates by 50 basis points. Let’s zero-in on the charts and see what the current technical picture of the market tells us: Dow – Daily Volume was higher than exactly a month ago – a good sign…
Not long ago, I was invited to join a chat at Ed Heath’s website “Stocks 2 Watch,” which contains Mr. Heath’s swing trade stock selections based on two screens that he runs. I enjoyed the chat, and – with Mr. Heath’s permission – wanted to mention his site for interested readers to examine. In addition…
Dr. Bruce Hong at the Trader Psychology blog recently provided the interesting thought on what it’s like to live on $400 per day – did you know you could live just like a typical physician?! That’s right. Dr. Hong details what a median physician salary breaks down to daily terms, and arrives at the figure…
The Tyro Trader has been posting a series of articles that detail specific types of trade set-ups from Michael Taylor. These posts detail the description, market condition, entry, exit, stop-loss placement, dangers, and – of course – examples of the following set-ups: Breakout Trades Gap Close (I refer to them on here as “Gap Fades”)…
We often become conditioned by our experiences to ‘fear’ or avoid certain things and to gravitate to, or favor other things. The process of conditioning occurs deep within us, and sometimes conditioning occurs with such subtlety, that we may be unaware of the effects of our environment (or situations) on our behavior and perception. Without…
Score one for the so-called “Plunge Protection Team” today! We had a 300 point surge on the Dow, which hasn’t occurred since October 15th, 2002. The Fed surprised the market with a ‘larger than anticipated’ 50 basis points cut. The market anticipated a 25 basis points cut, and likely already had that ‘baked in’ or…
ImClone stock probably is most famous for being the stock that “took down” Martha Stewart for potential insider information, but I wanted to show a recent power move and major gap fade that occurred within the last week for education’s sake. Ouch. Traders who bought – and there were many who did – around September…
In my trading, I frequently utilize strategies that are dependent upon an initial condition that arises from a new momentum high or low. The basic market principle that I derive these strategies is stated as “Momentum Precedes Price,” indicating that when a new momentum extreme is reached, a new price extreme in that direction is…
The past week was positive for the market, in terms of percentage gains. We saw the Dow Jones Index increase just over 2% for the week, with four up-price days and only one down-price day. The technical picture of the major indexes show rangebound conditions, yet a major impetus is on the horizon – Tuesday…
The Dow Jones ETF – the Diamonds (DIA) – and broad market completed an amazing “Fade the Gap” trade with few if any ‘hiccups’ along the way. It’s worth viewing for further study and reference: The gap close target also corresponded with the daily pivot point, providing an excellent target. What happens afterwards is beyond…