Posted on February 13, 2009 by Adam
Good morning traders,
Action seems like it’s found its way into the market. In case you missed it, a pretty bearish day ended with a monster rally in stocks. Even as the S&P 500 and the Dow both went on sell signals, bullish percent indicators still read bull confirmed, as bullish as it gets.
I think we [...]
Posted on February 12, 2009 by Adam
Whether you are new to trading or a battle hardened mega-trader, you need a broker that works for you, not the other way around. And I don’t mean one of those full service brokers - that’s for the birds. I’m talking about a quality broker with low commissions and great software. In this day and [...]
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Posted on February 12, 2009 by Adam
The stock market has been teetering at a pivotal level over the last week. Wave after wave of hopeful buyers entered the market, only to see their efforts thwarted by the onslaught of the weakening economy.
The financial crisis is far from over - the panic that ensued in late 2008 may be over, but we [...]
Posted on February 12, 2009 by Adam
If you look at the Finviz Heatmap you will see that everything is red across the board.
But take a look at the Nasdaq. Technology continues to show relative strength. The nasdaq composite is down by less than two percent today while the Dow and S&P are down by more than 2%. It’s not just today, [...]
Posted on February 12, 2009 by Adam
As I have said before, if we exceed 815 in the S&P, we will be on a sell signal.
Well, it’s happened. If there was a time to get bearish, it’s now.
As always, remember to stay balanced. Don’t go out and buy 50 put contracts and forget about upside risk. I’m in three positions now - [...]
Posted on February 11, 2009 by Adam
Well traders,
Nothing happened today - no significant price action. Stocks made a bit of progress, led by the financials, on what appeared to be a short covering rally after yesterday’s bear raid.
My opinion doesn’t really change here. If you look at the chart I put up yesterday, you will see that we are at an [...]
Posted on February 11, 2009 by Adam
I think this afternoon we will see some violent price action, in one way or another.
I could see it going either way - we either shoot upwards in a big short covering rally, or break down onto a sell signal. Just be prepared.
Posted on February 11, 2009 by Adam
Good Morning Traders,
If you haven’t wished the market luck this morning, you’re either sadistic or short. Either way, you can still enjoy the musical stylings of Toto.
If we can hold the line (***musical interlude***), that is, stay above S&P 815, then it looks like investors are buying the pullback we saw yesterday.
In my personal opinion, [...]
Posted on February 11, 2009 by Adam
I would like to hereby issue an official rally cry for the market this morning. More to follow…
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Posted on February 11, 2009 by Adam
Welcome traders!
This is the second part in a series of several articles introducing basic options theory. You can read about what options are and how they are priced here. This article will focus on option trading strategy, and how you can use them to increase your profits. I’ll go into the specifics of how [...]
Be on the lookout for an extended pullback.