General Comments
I thought I'd share a few thoughts today, kind of a "what I've learned in the past 10 years" post. This list was refined and crystallized by the process of writing the book, but this list was also a major reason why I wrote
General Comments
First, take a look at the weekly chart, which shows a classic Anti pattern. (Essentially a consolidation (think bear flag) following a potential trend change.) Now, look at the daily chart, and note two days of tight consolidation—this is an example of using a small technical trigger as an
General Comments
Though I am leaning pretty short on the overall market, any time you have a large one-sided bet on the market, it's always good to have a "go to" list for if those setups fail. VZ is interesting to the long side: * Market leader on our
General Comments
I’ve been absent from twitter, blogging, and social media in general for a while. This was by choice, as I wanted to turn inward and focus on my trading, building my business and finishing the book. For those of you who don’t know me (I’m sure there
Pullback
[dc]O[/dc]ne of the longer-term trades I am watching is, what I believe to be, good upside potential in the USDCHF. Waverly Advisors caught a nice long a few months back and recently closed it out on weakness, but there is still considerable room to run on weekly/
Support / Resistance
[dc]T[/dc]his chart shows a potentially actionable short setup in the stock of SanDisk Corp. (Nasdaq: SNDK). Yes, this is a stock sitting "on support", but the tight consolidation right on that support is more indicative of support failing than holding. Also, note the volatility compression
Pullback
[dc]W[/dc]hen faced with a strong uptrend with no pullbacks, as we've recently had in major domestic stock indexes (S&P 500 futures pictured in this chart), traders have a difficult decision: One, this contracting volatility makes the market vulnerable to a sharp selloff as
Anti
[dc]C[/dc]ontinuing from this post, I thought it might be useful to show the initial outcome of the APOL Anti trade. As a refresher: * A: Overextension. (In this case 3 pushes and climax beyond the upper Keltner channel.) * B: Sharp countertrend momentum indicating that sentiment and control has
Pullback
[dc]T[/dc]his chart shows the bull flag in JAZZ that tested the previous swing high and failed. As this stock was nearing that previous pivot, I tweeted that it was breaking out, but not to chase it. Why? Because this day was pretty close to a worst-case scenario
Climax
Trends end in one of two ways [dc]T[/dc]he last lecture looked at the power of an intact trend. Of course, trends do not go one forever. They do end, and they tend to end in one of two predictable ways. Consider an established uptrend that has shown
Pullback
[dc]T[/dc]he bull flag is a simple, classic pattern that is a fundamental expression of the ebb and flow of buying pressure in an uptrend. In this case, we entered a position in Jazz Pharmaceuticals pcl (Nasdaq: JAZZ) intraday, but the position could also be initiated on the
General Comments
2: Trends are more likely to continue than to end [dc]T[/dc]he previous post in this series considered the first principle of price behavior: that markets tend to alternate between periods of trends and trading ranges. This post will dig a little deeper into the power of an