Market CommentaryMore Market Commentary
So, we get a day off tomorrow, which makes the work week shorter and the weekend longer. It’s weird, I know, but I like that notion – a longer weekend. It’s just as well with this week in the market. A fella could feel a bit seasick if he hadn’t been on this ride before. Up and down and all around we go …
So, yesterday, I pointed out what the breathless media has yet to seriously talk about and that is that unemployment in 49 major metropolitan areas is at or near the Fed’s full employment l...Read More
July ICE cocoa futures a selling opportunity on more price weakness.
See on the daily bar chart for July cocoa futures that prices may be ready to roll over from the recent uptrend. A move below solid chart support at this week’s low of $2,962 would give the bears fresh downside momentum and it would also become a selling opportunity. The downside price objective would be $2,800 or below. Technical resistance, for which to place a protective buy stop just above, is located at $3,025.
It’s a short week with the Good Friday holiday, so I will try to be short and sweet with my words today. On Wednesday we heard from Fed Chair Yellen, and she repeated that any future interest changes would be based on employment numbers and inflation. The Fed also released the Beige Book on Wednesday, telling us that the economic activity increased and improved in most of the country as weather improved. The market seemed to like both of these bits of information, and the S&P 500 rallied and ...Read More
Let’s get down to the basics of Technical Analysis —something called support and resistance. Support is a price area when a stock finds more buying pressure than selling pressure and the buyers drive the price higher. Resistance is a price area when a stock finds more selling pressure than buying pressure and the sellers send the price lower.
I’m going to give you some price tickers. I challenge you to find a support price. Take VZ for example. In the comment section below, write wh...Read More
As every market pundit tries to guess the direction of the S&P 500, there has been plenty of opportunity that would have served investors better than fretting over short-term volatility and trading the broad market.
Trading the S&P 500 is not a strategy. As the market gave investors a flashing warning sign that risk premiums were changing, many investors continued to defy price and chase high momentum names that do not work. Even as the S&P 500 stabilizes and possibly retests the previous h...
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Weibo , commonly referred to as “China’s Twitter,” is expected to price its 20 million share IPO the evening of April 16, within a range of $17-$19.
Before its financials and fundamentals are even scrutinized, this Goldman Sachs/Credit Suisse led deal is facing an uphill battle. As the stock market – growth and momentum names in particular – have fallen out of favor, so to have IPOs.
Making matters worse, shares of Twitter have been clobbered since reaching post-IPO highs on December 26, 201...
How trading affects our relationships and relationships affect trading
In the past couple of months, I have received several e-mails from traders who were in emotional stress. With only minor corrections, the market moved up relentlessly for a year. This has been a difficult environment for traders, as a majority tends to fade market momentum, looking for volatility. I also received two e-mails from trader spouses—pouring out their hearts, as the emotional stress was effecting their relations...Read More
Why is it so important to be able to trade without fear?
The reason is that the emotion of fear clouds your judgement and makes it hard if not impossible to stick to your trading plan.
For example, the trader plans to enter a trade when it pulls back to a certain pre-defined level, he waits patiently for the pull-back and when price pulls back it does so with a large candle and high momentum. At that moment his fearful brain kicks in and starts rationalizing that this particular trade w...Read More
Goldman Sachs has been circulating a document repeating a question it is hearing more and more frequently from its clients these days: is the current market repeating the pattern that developed in March, 2000?
March of 2000, as everyone who was active in the market then remembers with some pain, was the month the tech bubble popped, and took the entire stock market down with it.
Then, as now, a handful of high-momentum stocks – an updated version of the `Nifty 50` of the last Millennium – wer...Read More
The principles that successful trend traders use to make money in the markets is difficult for the average investor or trader to understand.
Readers unfamiliar with systematic trend trading have a hard time grasping the concept of trading for profitability without trying to predict where price will go next. Most successful trend traders have preset planned entries that are triggered by a reaction to a new high or low price being hit. They use quantifiable price levels and indicators like movi...Read More