Market CommentaryMore Market Commentary
Monday the S&P500 mini-futures, the ES, continued moving down extending the weakness we saw in Friday’s closing movement. It spent most of the day in decline, and only the now customary 3:00 pm ramp-a-thon moved it off the lows and allowed it to close respectably, at 2090.50, eight points below the previous close.
It also closed below the 20/40-day moving averages. The one ray of hope for the Bulls is that the momentum buying at the lows does not seem to have diminished much.
Today... Read More
Biotech has been one of the best performing sectors year to date and over the last two years. Six different biotech ETFs are among the Top 10 YTD leaders: Alps Medical Breakthroughs , up 51%; Bioshares Biotechnology Product , up 38%; the SPDR S&P Biotech up 36%; Bioshares Biotechnology Clinical Trials , up 31%; and NYSE Arca Biotech Index First Trust , up 23%.
The Nasdaq Biotech ETF stands at #9 YTD with a 26% gain, but it is the volume leader and I consider it representative of the sector ...Read More
The US Federal Reserve, in its July meeting left the door open for interest rate hikes at its next meeting in September. The statement however cautioned the markets that ‘some’ improvement was needed in the US labour markets for the Central Bank to hike rates. This has significantly shifted the market focus to the two jobs reports, one of which is due this week for July and the other in early September. The US unemployment rate currently stands at 5.3%, albeit recent economic data on the empl...Read More
Believe it or not, successful traders do not have a crystal ball. All that he or she does successfully is find a potentially favorable set up and then put the odds in such a way where the reward makes sense to the risk. Repeat this process many, many times and you have a system that works out in the long run. I cannot tell which trade signals are the “good” ones. I just have to let the numbers pan out. So, let’s take a look at our play in McDonald’s . I note two main things: MCD has hug...Read More
In the 07/20/15 Trader Planet article, I mentioned that we had some bullish sentiment extremes and to expect lower. The SPX proceeded to drop 70 points in 7 days and made a low with some bearish sentiment extremes and now remains in a neutral trading environment when looking through an investor sentiment window.
The SPX has been trading within the 2040-2134 range for the last 3 months and each big move in either direction has that side of the trade thinking “this time is different” and they e...Read More
Featured StoriesMore Featured Stories
When I sit down to write for TraderPlanet, I typically mull over things that have occurred the same day in my coaching practice. It seems the fresher the experience, the more easily it can be milked for a few drops of insight.
Tonight I had the pleasure of working with an aspiring futures trader, a corporate pilot by day who has dreams of retiring from flying and leveraging his navigational abilities to become a successful private trader. This is indeed a dream shared by many.
What’s inte...Read More
It is a fact that liquidity in the markets has been decreasing for some time now. This is not just a feature of the holiday period, but certainly is more noticeable between mid July to around the third week in August. Thinning liquidity is in part due to the over mature long term cycle we are finding ourselves in.
Banks cannot trade as they used to due to tightening of regulations, low interest rates having taken their toll on profits, and investors are nervous of the future. The closure of...Read More
A hallucination is a fact, not an error; what is erroneous is a judgment based upon it.
We will at some point in time publish a full in depth article in terms of how Central bankers have been actively employing psychological strategies to deceive the masses for generations. In essence, central bankers have been recreating reality, and the sad part is that the masses now assume that this altered reality is the new norm. We are going to illustrate this by highlighting excerpts...Read More
By: James Cordier, Michael Gross
An outsider watching the prices of crude oil shift up or down may think this is some sort of random event.
“Who is causing this?” gas buyers and clueless politicians often demand, as though an evil oil company executive is sitting in a room throwing a lever to turn the supply on or off.
As an investor willing to do a little homework, however, you’ll find projecting price ranges for oil is a little less populist rhetoric and little more science and common s...Read More
Brett found trading confidence elusive. "If only I was more confident, I'd be a better trader," Brett explained. What might cultivate more confidence? "Making more winning trades, of course." Sorry, that’s the wrong answer.
The Source of True Trading Confidence
Trading confidence doesn’t come from the number of winning trades, how much money was won, or other ‘statistical’ measures. True trading confidence comes from mastering the various skills needed to read the market and execute and ...Read More