Market CommentaryMore Market Commentary
Last week I wrote about the SPX trading within a range-For Now! The pattern has been well publish and many are now looking for a possible top target for the pattern. It is pretty simple to figure out. You just take the points from top/bottom of the triangle and add them to where it broke out and that is your target.
So the high for the triangle pattern came on 02/25/15 and the price was 2119. The low came on 03/11/15 and the price was 2039. 2119-2039 is 110 points. The breakout of the patter...Read More
Today we go between ancient history and the future, which is now. We leave the market to its own devices, as it is again behaving as if it wants to go up. Maybe it is the tepid economic data coming out that has the market believing the Fed will remain sidelined until at least late in the year, or maybe it likes that spring is here. Whatever …
Greece is ancient history, you know Plato, the Iliad and the Odyssey, Homer, et al, but in today’s world, it appears the good folks of Greece do not wan...Read More
Crude oil’s slide has been well documented along with the causes and consequences. Prices have recovered a bit as we suggested they would, ahead of both the January and March Federal Open Market Committee meetings as detailed in, “Commercial Traders Ahead of the Fed.” The importance of this statement lies in the access the heads of the oil industry have to Washington. The energy industry is simply too big and too well informed to be caught off guard by legislative actions. As the oil market ...Read More
The recent forecast for a high on April 15 looked good as the Dow stalled out the next day and then dropped almost 280 points on April 17. But according to the forecast for the next low the “tax-day top” was supposed to precede a decline into late last week. Instead, the market has rallied from the low on April 17.
Despite the single-date forecasts generated by my Hybrid-Lindsay approach it is important to remember there is a window of time surrounding these forecasts. Always allow at least...Read More
Volume Profile is most useful during pullbacks, not when markets are making forays into uncharted territory. For that super bullish phase, I use Fibonacci extensions and weekly pivots.
One of the best ways to use Fib projections is to look for a confluence from two different ranges. We have a Fib confluence around the 4532 area, which happens to be where the futures are trading on Sunday evening as I write this. There is also a weekly half pivot here, so a pullback to close the last gap show...Read More
Featured StoriesMore Featured Stories
Even with the prevalence of high speed trading and other complex algorithmic systems, it is often the tried and true strategies that can help you be successful over the long haul. Many investors try to reinvent the wheel, but often the most successful traders today have patterned their trading styles after those of the great traders of the past.
“How to Make Profits in Commodities” by W.D. Gann was written in the 1940s and updated in the early 1950s. It’s an excellent textbook-type...
“Trade what you see, not what you feel.”
This axiom of trading seems so right, it is undeniable that all traders need to strive to achieve it. The only problem with this oft quoted remark is what you see is influenced by what you are feeling – no exceptions. If only traders could see the facts clearly without feeling, then they would be freed from the tyranny of emotional reasoning. Then trading would be easy. But nothing could be further from the truth.
The truth is all thinking is emot...Read More
The market is, admittedly, on shaky footing right now. Economic data is not quite as strong as we would like to see, the FOMC and their rate hike is just around the corner, and 1st quarter earnings growth is not expected to be good.
I could go on and on about how the economic trends are still pointing to growth, or about how the FOMC rate hike has been expected for so long it has no choice but to be factored into current market values, but I won't. When you boil away all the day-to-day infor...Read More
Market Conditions Affect Profits
One of the benefits of the modern market structure with online trading is that anyone can trade just about any trading instrument using a variety of trading styles.
This is also one of the biggest challenges that face retail traders. There are literally too many choices and not enough reliable information to help them select the instrument and optimal trading style that best suits their unique personality, goals, and parameters.
Using the wrong instrument or t...Read More
I have traded since 2001. Since that time I have come to understand that the most difficult thing to understand about trader development is the skills traders need to develop first have, on the face of it, nothing to do with trading.
It all comes down to one fundamental thing, which traders seem unable to grasp:
When you develop as a person you can’t help but develop as a trader.
If you really understood this statement, your trading difficulties would, if not disappear completely, certainly d...Read More