Market CommentaryMore Market Commentary
It should be clear to all at this point that the market has, for now, shaken off any concerns about the Fed and tapering. True, when the Fed begins sending its signals again, the market will have a noticeable negative response, but it will be relatively mild and not long-lived, much like what we just witnessed last week.
I wrote the words above on Monday, right after the positive employment report came out on Friday and the market jumped up. Yesterday and today, we are seeing a market wantin...Read More
March soybean meal futures a buying opportunity more price strength.
See on the daily bar chart for March soybean meal futures that prices are in a five-week-old uptrend and have just hit a three-month high. The bulls have the solid near-term technical advantage. A move above solid chart resistance at the September high of $434.10 would become a buying opportunity. The upside price objective would be $465.00, or above. Technical support, for which to place a protective sell stop just below, i...Read More
“The human understanding, when it has once adopted an opinion…draws all things else to support and agree with it.”- Francis Bacon
One of the most ingrained foibles of human cognition is the tendency to see what we believe. It’s called the confirmation bias.
The Misconception: Our opinions about the market are the result of balanced, rational analysis.
The Truth: Our opinions about the market have been formed by attending to information that confirmed what we already believed while largely dis...
Consumer Discretionary stock sector ETF Relative Strength Ratio whipsawed back up above its 50-day SMA on 12/10/13, thereby turning systematically bullish again . It was the third whipsaw in 5 weeks, and more could be possible as long as XLY/SPY stays near its 50-day SMA.
Utilities stock sector ETF Relative Strength Ratio broke down below its lows of the previous 9 years on 12/10/13, thereby reconfirming a major downtrend.
U.S. Treasury Inflation Protected / U.S. Treasury 7-10 Year ETFs...
What picture do you paint about yourself in your head as you trade the markets?
I like to paint the picture of a quarterback. My favorite quarterback is Russell Wilson from the Seattle Seahawks. Here’s Russell Wilson’s quote about being focused,
“When I’m in the zone, I always say, ‘Laser focused,’ ” Wilson said. “So for me, I want to be laser focused when I’m out on the field, and for that three hours of that time period, I want to be the most focused person out on the field that I can po...Read More
Featured StoriesMore Featured Stories
"Will the markets close up or down today? Should I take profits? Cut my losses? Get short? Add to my position?" The accuracy by which a trader can predict today's closing price will ultimately determine the size of his profits . The Wall Street 'Pros' take action before the market moves against them. Like sheep led to the slaughter, the Main Street 'Joes' often wait and pray - costing them hundreds or thousands of dollars in potential profits.
How do the Pros know? They don't. But they d...
The head and shoulders top, coils, ascending triangles, descending triangles, wedges, and last but not least…scallops. There are a large number of patterns that the technical analyst uses to define particular setups in price action that he can act upon and trade with a favorable risk to reward.
Many are common, with varying names, some are more rare, and less known, such as the scallops, initially brought to my attention by Technical Analysis of Stock Trends by Edwards and Magee. The market h...
With the holiday season and year end approaching, the IPO market looks poised for one more flurry of deals before firms close their books on 2013. Among the twelve confirmed upcoming IPOs is one more headliner that is sure to generate plenty of interest.
Hilton Worldwide Holdings , the world’s largest hotel company with over 4,000 properties worldwide, is set to go public on December 13, offering 112.8 million shares within a range of $18-$21. Given the prominence of the IPO, it’s not surpr...Read More
Without a doubt wave labelling is one of the most important skills an Elliott Wave practitioner must learn and work on.
It is of my opinion that this is where a lot of students of the principle fail in understanding and gaining the real benefits of the principle, this requires in-depth knowledge of the patterns, rules and guidelines. A diagram of an idealized Elliott Wave Cycle should always be in clear view of the analyst and under that multiple degrees of the wave labelling the practitione...
A few colleagues and I were chatting after their return from a recent trader’s expo, and the topic of Futures versus Forex came up.
This seems to have been a hot topic from the event and the subject of numerous debates between the various traders in attendance. The forex traders argued in favor of their ability to trade day and night, without the time constraints futures traders' experience. Futures traders contested that their wide variety of trading opportunities, ranging from currencies, e...