Volatility
How many emails do you get promising to show you how to find "hot stocks now"? How many screeners out there want to show you the movers and shakers in the market? How much attention does the media focus on big movers, and how much does social media
Volatility
Just a quick post to remind you of a technical tool you probably already know about. Like so many things that work, it's not exciting or sexy on the surface. It might seem overly simplistic or just not that interesting--but this is a powerful pattern that demands attention.
Market Math
I've received a few questions about how to calculate a measure I have referred to many times here on my blog and in my published research that I call SigmaSpikes. I've disclosed the calculation in several places, but the question keeps popping up, so maybe I
Breakout
I've written on this topic before, but we just had a good example in the market, so it's a great time to revisit. Many intraday traders find that most of a month's profits come from one or two exceptional trend days in the month;
Psychology
Before I call it a day, I thought I'd share a few thoughts with you. For those of you finding this post later, US stocks broke down Thursday of last week from a long, extended range, and closed the week Friday with what might be charitably called a
Pullback
Given the action in US stocks this week, I thought this might be a good time to share a few thoughts about the market. I hope to be able to show you a way to think about the market that will cut through all of the fear, hype, exaggeration, and
Technical Patterns
If you could hear anything beyond the screaming this morning over Greece, you probably also heard the news that China is now officially--yes, that's right officially--in a bear market as the major index has slipped 20% from its highs. This makes for a good headline (and I'
Market Math
So the stock market sold off hard yesterday. If you were living under a big enough rock you might have missed it, but now the doom and gloomers, the technicians pointing at broken "levels" and trendlines, and the permabears will probably be saturating the media for a few
Breakout
We can simplify many of the problems of technical or tactical trading to one question: assume that a market just made a large move. Do we want to fade (go against) that move, looking for reversal, or do we want to take a position with that move, looking for continuation?
Breakout
Just a high level perspective on what we have going on in a few major markets this week. In general, most markets are in some kind of volatility compression. Volatility compression is a term that basically means current volatility conditions are low, relative to more "normal" volatility for
Trader Development
I spend a lot of time writing about volatility and even more time thinking about volatility, correlations, and the implications for risk. I want to share a quick look at one of the screens I monitor intraday. Charts are very helpful, for many reasons, but where they falter is in
Anti
Since my other post today led you down a long trail of something that did not work, let me leave you this weekend with a pattern to watch over the next several weeks. Let's consider a potentially bearish pattern in Apple (Nasdaq: AAPL), and how that might play