The euro is forming a large wedge, or triangle pattern on the daily charts. As price gets closer and closer to the apex more pressure will build and an explosion of price action will result. Position yourself accordingly. Click the link for more info on price patterns.
The 4 core market internals consist of: Breadth Ratio Advance Decline Line Trin Tick You can use them to better pinpoint your entry and exits and get a good gauge of the market. In the video below I show how to setup market internals on the thinkorswim platform.
If you currently trade stock and options you’ve probably pondered the idea of futures trading. I’ve outlined the basics in my post How Futures Work over at EminiMind. One advantage to trading futures over stock and options is the ease of entry and exit. The futures markets are extremely liquid meaning there are a lot of buyers and sellers at all times making producing tight spreads, quality fills, and less slippage. If you’re considering trading futures, you may be interested…
Here are a few simple market psychology tests you can take to get a better understanding of your strengths and weaknesses in trading. I recommend the Success Psychology Test and Financial Values Questionnaire first as these two surveys will help you discover where you are at on the path to financial success. Trading in the Zone is a great book that will improve your trading psychology. Here is some more insight to the psychology of trading.
Hubert Senters talks about how to become a successful trader. The Disciplined Trader is a great book that addresses in great detail the aspects of psychology in trading.
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As talked about in the April 28th post we are targeting 1390s on the S&P500. You can see that we’ve pulled back once again halfway back and the old resistance has acted as new support. Option max pain for the SPY is 134 as of May 10 (prior highs) so we have a clear line in the sand if we should fail out of our move higher.