Short squeezes are something that happen A LOT and they define the professional trader from the inexperienced trader. Once a stock starts to break out or make a move the retail traders begin to chasing the move (because they feel they “missed out”), but the professionals are already in the move. At the point that the professionals are selling, the stock is just making news in the media and CNBC is talking about how this stock is a “great time…
We’ve all asked this question, so what’s the answer? Should you stop when a specific $ amount is reached? When a specific # of points have been tallied? When you have 2 losers in a row? Well I can’t tell you what’s right for you, but I CAN tell you what I do. Over the years I have noticed that there are a handful of great days in the month and the rest are simply average. Therefore when I begin…
It has been deemed a Steelers/Packers showdown in Super Bowl XLV. As economists and authors struggle to find a relationship for even the most unrelated items, such as in the book Freakonomics, and Outliers it shouldn’t surprise you that a relationship between the Super Bowl winner and the stock market has emerged over the past 50 years. What Does Super Bowl Indicator Mean? This indicator is based on the belief that a Super Bowl win by the old AFL (AFC division) leads to a…
The shortest and surest way to learn economics. This book is a great framework for expanding your knowledge of economics.
Week 3 of 2011 kicks off remembering Martin Luther King Jr. We have a shortened week this week and options expiry on Friday along with some big earnings from AAPL on 1/18 and GOOG on 1/20. For those traders who play gaps, options expiry Friday is a day to skip. Trader’s who usually trade the first 30-mins, be extremely cautious on option’s X as market orders are higher than usual during this time. We’re expecting a fairly volatile week for intraday trading.…
“In this world there is nothing that is certain except death and taxes” – Benjamin Franklin The government provides it’s biggest tax breaks to business owners and investors. As a self-employed trader, there are many ways to limit your tax liability along contribute to retirement plans and deduct additional business expenses. I am not a licensed tax professional, so I refer all my trader friends and colleagues to Robert Green over at Green Trader Tax. Green and his company are…
Here’s a cool video I found over at JackHeald.com. It puts in perspective how little the federal government’s tax cut programs really affect the overall picture.
As is tradition Alcoa (AA) kicks off earnings season today. This usually leads to a lot of whipsawing during the open and should be traded with caution. It does pose great for intraday traders and traders playing these news announcements. A full list of earnings announcements can be found here.