The Tyro Trader, who formally wrote for the Tyro Trader Blogspot, has recently launched a new blog dedicated to information pertaining to automated trading “bots” and his experience as he develops and trades an automated system. The new site is entitled “Trading Bots” and has great potential and should hold the interest of those developing,…
We’ve heard the market adage: “Sell in May and Go Away!” but does it really work? Historically, the market has performed better from the October – May period than it has from May to October, but I wanted to show you the last few years starting with 2002 and conduct visual inspection of this strategy….
The VIX (Volatility Index) inflected off 2008 lows and support just as the US Stock Market met resistance, which set up a nice confluence that could have clued you in to odds of lower prices in the broader indexes recently. First, let’s see the Weekly Chart to see when the last time we reached these…
Some traders imagined new life for the US Dollar Index, and while that may be the case long-term, in the short-term, the Index has created a false breakout only to roll back to the downside and could make new lows. Let’s look at the daily chart: While a positive momentum divergence did precede the breakout…
Let’s jump right into the intraday action and ideal trades (looking from the benefit of hindsight) that formed throughout the day. Let’s examine a new format, using the Dow Mini futures contract (@YMM08) viewed using what I see each day on TradeStation: (Click for full size image) Price was already on a move down when…
Volume analysis is an important part of any trader’s routine, and it’s important to know some key principles about volume to help you arrive at potentially better conclusions or possibilities about future price action. The most often stated principle is that “Volume Goes with the Trend,” meaning we would expect to see higher volume (relative)…
Let’s take a look at the recent sector money flow performance to see if we can glean any clues for the broader market, especially regarding risk-seeking or risk-avoiding behavior by larger funds. The 10 day rotation has taken money into the areas traditionally known as ‘defensive’ sectors, including Health Care, Consumer Staples, and Utilities. Energy…
I’m a big fan of John Murphy’s StockCharts.com charting website, but the company has outdone itself with a new feature I just discovered entitled “TickerRain.” What is TickerRain? It is an interactive page where StockCharts.com algorithms ‘rain’ (drop down in animation) the most recent ticker (stocks or index) symbols that are being viewed by site…
Apple, Inc (AAPL), which has been on yet another amazing price run for 2008, recently retraced to its sharply rising 20 day moving average, which sets up a potential low-risk entry for traders. Let’s see this zone: The last time Apple retraced to support was near April 14th, which set up a ‘confluence of support’…
With the day’s action complete, let’s look at the key points you could have added to a core position, or traded for quick scalp profits during the highly expected downswing in the market today: First, there was a prevailing bearish bias going into the day from the structure of the daily chart on the Indexes…