One of our rules we use is to NEVER trade the first 15-minutes of the market. This is because many times noise and false moves take place in this time. For open positions, if a stock gaps down below the established stop, wait for the first 15-min bar to fully form, and then place a stop underneath the low of that bar. More often than not the stock will gap below your hard stop then rally in the first 15…
In week 7 we saw more sideways action with candles lining up same sized bodies on the weekly chart of the S/P. Once again the mixed internals confirm this. Gold is moving once again so keep that on your radar in weeks to come.The VIX is still in its triangle formation on the dailies, holding in the 40s. Oil continues to decline, ranging in the mid to upper 30s. It’s the speeches given by political and corporate officials have had…
OPTIONS EXPIRY WEEK! In the week ahead make note of these important economic announcements.· Weds: Housing Starts 8:30 ET· Thurs: Industrial Production 9:15 ET· Thurs: Producer Price Index 8:30 ET· Thurs: Jobless Claims 8:30 ET· Fri: Consumer Price Index 8:30 ET If you look at the Dow versus the NASDAQ, you can see the divergence in strength. The NASDAQ is showing to be the strongest out of all the indices, putting in higher highs and higher lows, while the Dow…
To recap last week’s watch list we had 8 winners, 0 losers, and 4 remain open (1 of which depends on where you placed your stop). View the detailed analysis below… MYGN – Continues to break to new highsCECO & COCO – Positions remains open. The gap down on Thursday did not trigger our stop since we do not trade the first 15-min bar. After the first 15-min bar closed, we placed a stop under the low of the day.POT,…
Back in October of 2008 I was interviewed by Tim Bourquin of TraderInterviews.com and The Money Show. I delve into my trading strategy, tactics, and market psychology, click below to watch.
Taking a look at the Volatility Index (VIX) daily chart, Justin noticed we are forming a symmetrical triangle as well as coming into the 200-MA. Watch for a contraction of the VIX into the 30’s to signal a move higher, but if the VIX breaks to the upside, we should see stocks go lower.
Week 6 was quite bullish. We put in a higher low on the major indices and the NASDAQ broke to a higher high. The S/P, Dow and Russell are close behind sitting right at the previous swing high. We saw a divergence on the NASDAQ internals on Wednesday, again not something you see too often. This is a sign that a tug of war still remains between the bulls and bears, even as we move higher. The Basic Material sector…
We are at a pivotal point here in week 7. While the last two trading sessions have been quite bullish, we are not rushing to go all out long. Watch for the S/P, Dow, and Russell to break their previous swing highs. Sideways action would be a sign of upside to come because it means the bulls are holding prices at these levels, however we remain cautious for short sellers will want to try and push prices lower at this…