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Market Commentary

More Market Commentary

Real Positive Returns and Media Streaming

This morning I woke up to a foreign computer. Well, “foreign” is not exactly the right word; rather the screen lacked a number of items normally on my screen, such as my Think or Swim trading platform. A quick reboot fixed the problem, but a couple of other issues arose with my Carbonite backup system. An hour later, after hearing the Carbonite tech voice at the other end say, “I have never seen that symbol before,” I am left with no resolution and I have little time to write this morning, a...

Apr 22, 2014
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Advance-Decline Line: Find Intraday Turning Points

When we discuss market breadth we often are looking at daily data. In the Technical Market Outlook post I wrote on my blog I show the NYSE Advance-Decline line each week as a reminder of where we stand with regards to breadth. However, we can also use this powerful tool when looking at intraday data.

When looking at the NYSE Advance-Decline Line it’s important to remember that it includes more than just common stocks. Among over 1,900 securities that make up the NYSE, included are ADRs, REIT...

Apr 22, 2014
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June Euro Currency Futures: Trading Idea April 22, 2014

June Euro currency futures a buying opportunity on more price strength.

See on the daily bar chart for the June Euro currency futures that recent price action has formed a bullish pennant pattern, which technical odds suggest will produce an upside “breakout” from the pattern. A move above chart resistance at 1.3864 would become a buying opportunity. The upside price objective would be 1.4000 or above. Technical support, for which to place a protective sell stop just below, is located at 1.38...

Apr 22, 2014
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Big Options Activity In Calpine Ahead Of Earnings

Monday’s session saw the thinnest option volume of 2014, off 40% from the daily average, as Wall Street traders appeared to have opted for an extra day in the Hamptons.  CBOE’s SPX closed 1871.89 while VIX futures were 15.25 at the closing bell. 
 
Nonetheless, at least one trader showed up, buying 1,749 Calpine Corporation May 22 strike Calls for $0.60.  With the potential to control 174,900 CPN shares, this $100,000 investment will be at break-even should shares trade above $22.60 at May ex...

Apr 22, 2014
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Crude Oil: It's Still A Buy On Dips

In the past week, WTI crude oil futures affirmed a rising trend since the beginning of the year that tells us this is still a dip-buying environment.

In mid-February price broke out from a large double bottom defined by the lows in November and January. After extending gains initially, price suffered a pretty steep pullback in March. WTI fell back into the area of the double bottom but not very deeply so or for very long.

The recovery since mid-March has been fast and frenzied. In the past we...

Apr 22, 2014
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Featured Stories

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3 Things Every Trader Should Do Each Spring

Spring is notoriously known as a time to clean. While many may be planning to tackle the closet, the garden, or the cupboards, Traders should be applying the same cleaning mindset by taking a look at their own trading processes. Below are three things that I think every trader should do to spring clean.

#1 Clean Up Your Charts

Far too many traders have way too many indicators on their charts. They believe that if they have charts that look complicated, they will somehow be able to decode the ...

Apr 22, 2014
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Which Holidays Are Good For The Market?

Last week we posted a brief outlook on the broad U.S. equity market heading into the Easter holiday, and we casually dropped a throwaway line: “the markets like Easter.”

A reader asked a simple question: “Is there really a seasonal bias in favor of Easter.”

Good question. The answer is yes and no.

The bump we expected going into the Easter weekend was certainly there: the S&P 500 was up 2.7% last week, the best performance for the year-to-date.

It is not so much that the market likes Easter ...

Apr 21, 2014
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Weibo’s (WB) IPO Faces Wobbly Market, Skepticism

Weibo , commonly referred to as “China’s Twitter,” is expected to price its 20 million share IPO the evening of April 16, within a range of $17-$19.

Before its financials and fundamentals are even scrutinized, this Goldman Sachs/Credit Suisse led deal is facing an uphill battle.  As the stock market – growth and momentum names in particular – have fallen out of favor, so to have IPOs.

Making matters worse, shares of Twitter have been clobbered since reaching post-IPO highs on December 26, 201...

Apr 16, 2014
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Trading And Spouse Relationships


How trading affects our relationships and relationships affect trading

In the past couple of months, I have received several e-mails from traders who were in emotional stress. With only minor corrections, the market moved up relentlessly for a year. This has been a difficult environment for traders, as a majority tends to fade market momentum, looking for volatility. I also received two e-mails from trader spouses—pouring out their hearts, as the emotional stress was effecting their relations...

Apr 15, 2014
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Overcome Fear In Your Trading

Why is it so important to be able to trade without fear?

The reason is that the emotion of fear clouds your judgement and makes it hard if not impossible to stick to your trading plan. 

For example, the  trader plans to enter a trade when it pulls back to a certain pre-defined level,  he waits patiently for the pull-back and when price pulls back it does so with a large candle and high momentum.  At that moment his fearful brain kicks in and starts rationalizing that this particular trade w...

Apr 14, 2014
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