Is any daytrader feeling sea sick from the ‘ebb and bob’ of yesterday and today? Did today feel like a repeat of yesterday, but only in reverse? If so, you’re not alone. We do live in interesting times, that’s for sure. Price in all major US Indexes closed just shy of where it opened yesterday,…
Today’s intraday Dow Jones ETF action was less than stellar according to my strategies, as you’re about to see. Trade setups were in small supply, and endured a ‘rinse’ or ‘wash’ prior to achieving their target. Let’s look at the ‘ideal’ setups for the day on the 5-minute DIA chart: In the morning, there was…
Let’s look at what the Sector Flow Model is showing us, both on a short-time frame and longer out. First, let’s look at the Inter-market Chart from StockCharts.com: This chart may be a bit complex to understand, but let me just focus on one point: View only two lines: The Purple Line (bottom) which is…
I wanted to create a new series on the Afraid to Trade.com blog, entitled “Idealized Trades of the Day.” What I am attempting to accomplish is to highlight the most ‘perfect’ trade setups – whether resulting in a profit or loss – based on my system and interpretation of intraday market action, in order to…
The relative value of the Australian Dollar has plunged over the last few weeks, underscoring the point that global markets are suffering along with the United States. The visual chart of the decline shows a market under intense selling pressure, and is an educational example of how price can run away from you as a…
I’m currently testing various simple strategies and discussing the results as I learn more, but one may ask what is the point in studying random entry trading systems? First, newer traders believe that if they can find the perfect settings or the perfect combination of indicators on a chart, then they will be very successful…
Last week was one for the record books! Traders on both sides of the market were both squeezed relentlessly, and rewarded handsomely… often within hours or days of each other. The following remarkable technical events occurred last week: The Dow plunged 300 points by mid-day only to recover almost fully (swing up by 300 points)…
There’s really no other way to state it: All Major US Stock Market Indexes are now in confirmed downtrends by most traders’ definitions: Price has made a lower low, lower high, and then taken out that high Price is below the 20 period, 50 period, and 200 period moving averages The 20 period moving average…
Yesterday, I mentioned I would begin to define the market trend as “down” when it broke the 200 period moving average less than 180 points below price… and today price rests directly on that moving average, teetering between confirmed uptrend and confirmed downtrend. A swing of 50 points lower will be enough to confirm the…
The US Equity Market has taken a surprising downturn, and where some are using the word “correction,” other are using the term, “top” indicating their belief that the Dow High of 14,000 was the ‘top’ price of 2007. Without a doubt, the market is in a much more precarious situation than it was less than…