Market CommentaryMore Market Commentary
Until about a week ago, shares of Tesla were holding up well, considering that the company is highly valued and lacks GAAP earnings. Tesla is also a lightning rod in the investment sphere; the subject of passionate disputation among bulls and bears. It’s actually rare to see this degree of polarization regarding such an innovative company, but the fanfare surrounding its product launches seems to amp up the controversy.
Moreover, investors vary considerably with respect to how much they wi...Read More
Here are 9 facts about the weekly chart of the Dow Jones Industrial Average.
- The highest it’s ever been, thus far, is 18,351.36
- On 8/4/15 it made a low of 15,370.33, which represents a 2,981.03 drop or a 16.24% drop in price.
- That drop took 13 weeks.
- The 10 and 20 exponential moving averages have crossed the 50 exponential moving average
- The last time this happened was between the months of August and October of 2011.
- The 100 simple moving average on a weekly chart is at 17,063.74
- The 20 ex...
Today’s Trading Edge:
The Canadian dollar has weakened significantly over the past year as the oil price shock surprised both many investors and central bankers. The Bank of Canada has already lowered rates twice this year and many anticipate them to remain on hold for quite some time. While many believe the excess supply and consistent production will keep oil prices lower, we are seeing a potential key technical move higher with oil and may see another major leg higher over the next coupl...Read More
We are often asked, ‘are you bullish or are you bearish?’. I am often labeled a ‘perma bull’ because many of my plays are on the bullish side of the market. More recently I have been called a ‘perma bear’, for the very opposite reason. I really don’t care about labels, it’s all about being on the right side of a market trend. We make trades that are bullish or bearish all the time, but the label I want to stick is this one – trader.
We can have a bias that tends to skew the way our trades to ...Read More
The energy sector has found a bit of life over the last several weeks but we believe this to be short lived. While crude oil futures did push to new highs for the move on Friday, they failed to hold their gains and closed lower on the day. Furthermore, petroleum products like unleaded gasoline and heating oil failed to make new highs Friday, leaving the end of August short covering snap back as the highs for both of these products. Among these three markets, heating oil is currently the most ...Read More
Featured StoriesMore Featured Stories
You’ve probably heard a lot about the gold-to-silver ratio, but you might not have taken the time to stop and think about its implications. Further, you’ve probably bypassed it as a tool for determining optimal times to speculate in precious metals. We’d like to take this opportunity to point out some of the key takeaways from the strategy of using the gold-to-silver ratio to determine higher probability circumstances in the metals futures and options markets.
What is the gold-to-silver rat...Read More
In my personal trading I much prefer bull phases. The pullbacks in an uptrend make more sense to me. Thus, I’m looking forward to a continuation of last week’s rally with a generous target of 2082 in the S&P futures.
Why 2082? This is the Volume Profile Point of Control for a look-back of one year. In other words, it’s a critical level that will be watched by ‘big money.’ I say that because it is a high volume node of a very extreme sort. You can see the hyper-extended shelf-like projection...Read More
Here’s why a trading room could be hindering your success as a day trader. I ran a trading room from 2010 to 2015 and had hundreds of traders pass through my online trading room. Each day I would present to the room trade ideas and live trade calls with entries, stops and targets. I honestly felt that I was helping traders so they could be successful. I personally have been trading my own method, the “Gap Edge Method,” since 2003. However, after running the room for five years I saw a lo...Read More
In tennis, one of the most common mistakes that newer players make is to look across the net at the spot they are targeting as they strike the ball You might not think this is a significant error, but it turns out, it is. And if you read a little further, there is a concept here that might help your trading.
The process of striking a tennis ball in your racquet’s sweet spot that’s coming toward you at 50, 70 or even 90 mph requires exquisite timing. The brain can handle it, but it needs th...Read More
By Gil Morales, CEO, Gil Morales & Company, LLC
In my recently published book, “Short-Selling with the O’Neil Disciples: Turn to the Dark Side of Trading,” , I discuss the short-sale set-up chart pattern known as the “Punchbowl of Death,” or “POD” as I like to refer to it in acronym form. Like the more classical and orthodox “Head & Shoulders” formation, the POD is simply another template, albeit a somewhat unorthodox one, that I use to identify potential short-sale targets in-the-making. Wha...Read More