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Market Commentary

More Market Commentary

Miners Are Losing Strength

Gold Mining Stocks ETF/Gold Shares ETF Relative Strength Ratio fell below its lows of the previous 8 years on 10/29/14, thereby reconfirming its preexisting downtrend. Absolute price of GDX fell below its lows of the previous 5 years on 10/29/14.

Silver Miners ETF price also fell to a new low.

Newmont Mining price fell below its lows of the previous 12 years.

Materials Select Sector SPDR ETF Relative Strength Ratio fell below its lows of the previous 14 months.

Foreign Stocks ETF Re...

Oct 30, 2014
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Your Brain on Trading

Traders are often advised to approach trading as a business. That’s a “good idea” but difficult to achieve in practice. Why so?

The cerebral cortex is the “smart “ part of the brain. All mammals have a cerebral cortex, but the size, in percentage terms, varies. Your cat’s brain is about 3% cortex. Your dog’s brain is about 6% cortex. The human brain, on the other hand, is 83% cortex.

That’s why, even though it is around 2% of our body weight, the brain uses 25% of the oxygen we consume and 70...

Oct 29, 2014
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Netflix Is Worth A Look

Earnings gaps to the downside can provide a significant amount of technical damage to stocks. This kind of damage takes weeks or even months to repair, and you can use this to your advantage in the options market.

After trading in a six-month range, NFLX had a massive gap down of over 100 points. Since then the sellers have cleared out, leading to a slow grind higher.

What we are seeing as an attempted gap fill, but as NFLX approaches the 400 dollar zone, odds are more sellers will come back ...

Oct 29, 2014
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A Look At Grains This Week

The week started with the weekly crop-progress report, a gauge of supply. 

Corn condition came in at 74% good to excellent condition unchanged on the week. Harvest was pegged at 46% complete.  The ten-year average is 64%.  Early indications suggest farmers will store three-quarters of this year’s crop. 

Soybean condition came in at 74% good to excellent condition, up one percentage point on the week.  Harvest jumped to 70% complete with the 10-year average at 76%.  The aggressive harvest pace...

Oct 29, 2014
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Slow Down and Chew More Carefully

Again, I would caution the market to take small bites and chew carefully before swallowing. Yesterday’s gulp chomped off another chunk of the big losses recently seen. Heck, the Dow is back above 17,000 and the S&P 500 crushed its most recent ceiling at 1967, finishing up 18 points higher at 1985.

My guess is the market will heed my advice today, even though the economic data coming out and the earnings coming out support an enthusiastic market. Looking at today’s action in the Russell 2000, ...

Oct 29, 2014
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Featured Stories

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10 Things Every Trader Should Know Before Making a Trade

Many new traders entering the trading game can’t get the right answers because they aren’t asking themselves the right questions. Much of the success traders experience is attributable to how well they know themselves. This insight for you will come from the quality of the questions you ask, and how honest you are willing to be with yourself. Only after you honestly answer the following 10 questions, will you have enough self-awareness to be successful.  

  1. What markets will you trade? Futures,...
Oct 29, 2014
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Psychology: How To Stop Trading Hesitation

Procrastination, and in particular trading hesitation, over your trade set-ups is very frustrating and detrimental to the health of your trading account and your emotional and physical well being. Whenever we observe behavior patterns that prevent us from trading profitably value conflicts born out of incorrect assumptions about your reality are always at the root of the issue.

In a world that is changing in all areas faster than is comfortable for the conditioned limited mind, hesitation is ...

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Trading: Communication Is The Key To Lowering Your Taxes

How many times have we been told that communication is the key to a good marriage or a good friendship? In the business world, we are told that communication is the key to success. I am a big believer in the power of open communication. It’s one of the main reasons that Guardian Accounting Group has a flat fee structure. We never want our clients to be afraid of talking to us about a tax situation because of an hourly fee. Clients are encouraged to call us with all their tax questions and con...

Oct 16, 2014
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Market Profile®: 3 Important Ways It Can Improve Your Trading

You can look at markets and make trading decisions in many ways. Market Profile® has been an indispensable tool in my trading career. While Market Profile is a lifelong study, three characteristics I use to increase the probabilities of making successful trades are areas of acceptance and rejection, trade location, and context.

Areas of Acceptance and Rejection

The most useful characteristic of Market Profile is how it paints the picture of acceptance and rejection of price over time. It show...

Oct 15, 2014
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The Case For Gold: “The Good Old Days”

In a recent interview, Rick Rule of Sprott Asset Management made a strong case that this bear market may be looked back on as “the good old days” in terms of the golden opportunity to invest in the precious metals sector.

Rule said there has been “carnage” in the precious metals markets over the past three weeks, adding to “slow motion” carnage since 2012. He said it is “Difficult for people to see benefit in this type of carnage.” However, he argued, “Three or four years from now, we’ll look...

Oct 13, 2014
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