Friday market the official “closing” of the gap created by the “shock” decline in late February ’07. The market is now at a technical decision node, and will either reverse off the gap closure or continue higher. Either way, there may be a technical pause at this level if traders who were trapped by the…
I wanted to introduce a few sector rotation analysis charts. Sector rotation – once understood – can provide clues as to the future of the broad market, as well as opportunities for both investment, trading, and hedging decisions. I recommend learning more on Sector Rotation, but I will be providing brief possible implications based on…
From time to time, I will post results of my scans regarding industry and sector analysis. How to read these charts: Colors are read from right to left as money flows into an industry (red on right to green on left) The numbers – 100 for example – mean percentile of industry groups (in terms…
I absolutely use Moving Average analysis in my trading, and – although there are hundreds of articles that address the topic – I found two recent posts in the blog world to be interesting to me. First, let me preface: Moving averages – like every other indicator – “work” because people respond to them, and…
From the Traders Action Zone, the author writes a brief post regarding the TAZ strategy, but of great importance for my focus here is the areas and confluence of different types of strategies and traders all on one chart. Think about how different traders and strategies create the aggregate charts we see. The author (Craig)…
Today’s action was surprising in the degree and reliability of the (intraday) trend, especially given the down trend (intraday) yesterday and its smoothness. Today’s trend swung with reliable entries and position addition points, which could have resulted in a rather large profit. First, the Dow reversed course when it reached support at the daily convergence…
Michelle, guest author at Trader Mike’s site, contributed a summary post of an earlier article (anticipation vs reaction) and also listed four more links to previous posts that are very helpful to newer and experienced traders. She also discusses an interesting paradox in thinking: “Beginner traders are often anxious to do the right thing. They…
Yesterday was a wonderful day for trading, as the market signaled a daily short-sell set-up and the intraday action unfolded beautifully with pure price swings and clear resistance/support levels. Rather than muddy up a chart, I thought I would indicate the pure action using the 15-minute chart with nothing but price and moving averages. Moving…
Do you know the “whys” of how you trade? What I mean is, when you take a signal, do you consider why you are taking that signal? When you exit, do you know why you do so? On the surface, you might say “I enter when I perceive prices moving a certain direction, and I…
If you like newsletters or market predictions, a great site I discovered recently is Carl Futia’s site. Carl Futia obtained a PhD in Mathematical Economics. He uses the Theory of Contrary Opinion and Box Theory (which he describes on his site). He frequently updates futures, including the Nasdaq and S&P. Today, he posted price targets…