Readers know how much I enjoy gap fade trades. This morning was no exception, though it was nowhere near the magnitude of last week’s gap fades. Let’s check it out: I’m utilizing the one-minute chart (not recommended for trading) to illustrate the point, because the 5-minute chart is too narrow to illustrate. Gap fades are…
Rudy at the Ticker Tape Trader recently posted a variety of rules from famous trader Richard Donchian, famous for his Donchian Channels trading system made famous by the Turtle Traders. While I suggest you look at all the sample of guidelines, I thought I would highlight a few of them here: “From a period of…
Here’s a quick Monday afternoon snapshot of the current US Indexes and what may be in store for this potentially volatile upcoming week: First, where the Dow Jones Index stands: 2008 has gotten off to a very bad start January is on course to set new lows on the index, which is bearish due to…
It seems the divergence setup is becoming one of my favorites as well. Goldman Sachs (GS) recently exhibited a lengthy divergence with a snap resolution today on the smaller timeframe, which may bode well for the stock in the short term. Let’s look: Typically, a divergence sets up a small target trade (retracement only), but…
Here we analyze the absolute returns of the nine major US Sectors of the US Stock Market and their performance (in percentage terms) so far for 2008: All sectors lost money so far in 2008, with Technology (green bar) and Energy (black bar) losing the greatest amount to date. Financials (-6%) and Consumer Discretionary (-5.6%)…
Here is a sampling of blog posts I read this weekend which I feel you may benefit from as well: From The Smart Money Tracker: Inflation… Is There, or Isn’t There? “Inflation is simply too much money. When governments try to get something for nothing by printing paper currency it eventually flows into hard assets….
It’s always great to see the resolution of a classic trade, if for nothing else than for an educational resource. AIV (Apartment Investment and Management Co) recently resolved a lengthy buy divergence in a fierce way: Typically, divergence trades are only good for a small, counter-trend target, but lengthy, multiple swing divergences can frequently precede…
With the market turmoil not contained to the US Market, I thought it would be productive to highlight the weekly charts of some of the major countries of the world. I will be using the MSCI iShares from StockCharts.com for the quick fly-by around the world. Let’s fly around the world, starting with Brazil: Brazil…
Ok, not really. But seriously, it seems the market is like a cash machine right now for those who employ gap fade tactics. Gap faders have found the hidden switch that turns on market profits simply and effortlessly. Today was another example of the gap fade tactic across many stocks and especially in the Dow…
Microsoft (MSFT) was the darling talk of the financial media last night, with discussions of beating earnings and sales expectations, and a large upside overnight gap formed in the stock. So far, traders who entered long this morning when most retail (at home) traders were able to do so have been burned, as Microsoft has…