Daily Commentary

I often try to mark-up the “perfect trade zones” based on my system each evening looking back at the day’s action, and today offered very little in terms of trades I identify and am comfortable taking. Today, I was chopped around as I tried to play the short side because of the strongly negative breadth…

When trying to assess daily market internals, it is helpful to follow the Breadth, or the Advance/Decline Lines (number of stocks positive for the day vs. the number of stocks negative for the day). I plot these lines to create an inverse graph, rather than simply following the breadth number because it helps show the…

How did everyone enjoy today’s market action? I am noticing a shockingly similar pattern to trading days where Federal Reserve policy is announced: There is sharp contraction in volatility and immediately following the action, there are usually three sudden pulses (bursts) of trending price movement. Such days are indeed for the bold and daring, but…

I wanted to post a lunchtime chart of the QQQQ’s which had the best 5-minute New Momentum High and “two trade” Impulse Buy set-up I’ve been describing. The DIA and SPY had almost identical impulse buy setups. Remember, after a new momentum high, wait for a pullback (ideally to a key moving average) and play…

Wow! What a day! The Dow fell 150 points and then rallied 200 points almost without looking back! Oh what a day to be a day trader! Today was nauseating for swing traders, though. Today also pierced both bulls and bears! I’ve been very cautious in this market but decided to be aggressively short yesterday…

I am trying to keep this site educational in nature, and not inject too much analysis into the blog, but it has been requested that I provide a little more updates on market action. As a disclaimer, please keep in mind I do not offer trading advice – all charts are posted for educational purposes…

I want to highlight the market principle “Momentum Precedes Price” by a past chart example and the possibility that we are seeing a similar set-up in the market. You know all the caveats about market advice; I am posting this for education – not for trading advice. First, let me post a daily chart of…

Did the most recent stock market decline come as a surprise to you? My guess is yes, and to be honest, its violence and rapidness came as a surprise to me – but I had been sensing things just weren’t right with the market for some time. Unfortunately, this intuition kept me sidelines and missing…