Market CommentaryMore Market Commentary
A few days ago I wrote an article for TraderPlanet with a very bearish target for the Nasdaq futures. The target, 3665, appears on the chart accompanying this article as well.
The good news for the Nasdaq bulls, which I assume is almost everyone, is that on Thursday the index stood on a “line-in-the-sand,” looked over the cliff and decided it was not yet time to jump.
That line in the sand is the Volume Profile Point of Control currently at 4125. That level was 4268 on Tuesday morning and fr...Read More
S&P 500: Bells they ring at the top
Years ago, when the internet was still a novelty, I was mentoring a young trader who started following something new, a message board that was carrying a series of articles entitled: Bells they ring at the top. My student asked, in all innocence “do they really ring a bell when the market reaches the top?”
If only. The idea started with Lloyds of London, which kept a ship’s bell in the underwriting room and rang it when there was important news – once for ...Read More
Since we are perhaps on the verge of interest rates actually not being zero, I thought a quick review of the least known "Greek", RHO, would be in order.
The RHO of an option is the change in option value that results from a change in interest rates. The theoretical value changes in relation to a one- percentage-point movement in the underlying interest rate.
For example, say the theoretical price of a call option is $8.25 and the Rho value is .25. If interest rates increase from 2% to 3% th...Read More
Most traders have come across the standard risk disclaimers that decorate the footers and back pages of articles, websites and webinars. You will typically find language disclaiming any responsibility for the reader/customer’s trading results along with a reminder that trading is risky and one should only commit an amount of capital to one’s trading account that one is willing to lose.
I doubt very much that most traders take this warning seriously. Why?
Humans, and especially those of the ma...Read More
Every time I sit down to write a weekly piece on the markets, I usually spend some energy hitting the desk as I struggle for ideas. Some weeks are easier than others; gifts from the Federal Reserve and market volatility are always welcome. My respect for daily and weekly columnists has grown enormously, with the exception of sportswriters who don’t check their facts.
This is one of those weeks where I find myself pounding the desk a few more times in frustration. We are at the end of the quar...Read More
Featured StoriesMore Featured Stories
As we are at the end of the month and quarter, we take a look at the dismal performance of the indices over the last three months and have to make an assessment. The quarter is down well over 6% as of this writing, and certainly one of the worst performance in years. Our assessment is of the trend, which is always your friend! If the trend is lower, what is the reason to fight it?
While the markets are not technically in a bear market , there are more than 50% of stocks that are down more...Read More
Cycles are nothing else but expressions of energy: When you learn how to read and feel energy you can save yourself a lot of guesswork and frustration in the timing of your trades and investments.
The nature of the universe is cyclical, at least from our perspective as humans living on earth.
Each cycle has its very own unique energy field and feel. While cycles are predictable up to a degree, because they repeat, they never repeat in the same way, because our consciousness changes. As lo...Read More
Recently, I have explored the topics of the effect of personality on your trading and investing risk management, position sizing, and different analysis styles like technical and fundamental. In this post, I will delve into the current market conditions analysis, which I feel is extremely important and should be a crucial component of every successful trader’s toolbox.
When I started out years ago, I was a pure “Warren Buffet” type value investor. As a result of this, I was solely interest...Read More
Do You Have A Bread & Butter Trade? Here’s My Favorite Setup
Trade setups fall into one of two categories: bread & butter trades and all others. For the reasons you will read below, bread & butter trades are some of the best. I’ll show you my all-time favorite bread & butter setup.
Characteristics of a Bread & Butter Trade
Bread & butter trades have specific characteristics. These trade setups:
- Are reliable profit generators. This means that when traded properly, they have a solid win ra...
I am going to answer a question that many readers have been asking me recently.
This question is certainly not a new one, and is likely to always be asked in the foreseeable future. Why is this? It’s because the question relates to pretty much everyone.
Every new investor or trader begins with a different account balance. Some brokers demand a minimum amount to even open a brokerage account.
Some years into my career, I had begun with different account balance levels as I tried out differe...Read More