Posted on June 9, 2009 by Adam
Looking for another tool to help you get an edge in your trading? Heikin-Ashi candlesticks may be your thing. This Japanese methodology (the name translates to “average bar”) helps you to identify trends and determine when they have changed.
Unlike traditional indicators, which are used to supplement traditional candle charts, Heikin-Ashi candlestick charts can be used [...]
Posted on May 21, 2009 by Adam
When trading conditions are tough, you can rely on gold stocks to get you through. The reasons why are fairly simple
To understand why, you need to look at the relationship between gold and equities. The role that gold plays in intermarket dynamics changes over time. It generally moves opposite to the US dollar, as investors [...]
Posted on May 14, 2009 by Adam
The S&P remains pegged between two important levels. 900 should serve as a resistance to the upside, and 875 will be the line in the sand for the bulls. Until either of those levels is broken, I don’t want to take a directional stance on this market.
The market traded higher today, but the trend that [...]
Posted on May 12, 2009 by Adam
If you day trade futures, understanding how market profile works can be valuable knowledge. Even for swing traders, understanding how to read market profile can help you gain a competitive edge.
What is market profile?
A market profile is a convenient relationship between price and volume. A market profile is constructed by looking at all the prices [...]
Posted on May 8, 2009 by Adam
I started out with next to nothing in my trading account. When I was 18, working my first real summer job, I deposited part of my weekly paycheck into my brokerage account. When I finally worked up the minimum amount ($2000) I was delighted, only to find out I was pretty limited in terms of [...]
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Posted on May 4, 2009 by Adam
I’m hearing a lot of buzz about oil. China’s numbers today have helped commodities a bit, but I hear traders whispering about a range capped by the level of $55/barrel.
I looked into this a little bit more. If you look at a point and figure chart of crude oil, printing 55 will put it onto [...]
Posted on May 1, 2009 by Adam
I love the semis! The semiconductors that is. These stocks have been on fire - so much so that they have been hard to buy. But now we’re seeing a real pullback and buying opportunities in semiconductor stocks are starting to emerge.
What you will notice in these stocks is a strong upward trend followed by [...]
Posted on April 20, 2009 by Adam
I mentioned earlier this morning that I would start to get bearish if the S&P violates its bullish trendline. That has happened, now, and I’m looking for an area to use as a line in the sand.
Looking at a point and figure chart to color my analysis, I have identified a pretty interesting price level. [...]
Posted on April 14, 2009 by Adam
I’ve been finding a ton of bullish setups lately. Personally, I’m considering CMO, DRI, and PNRA. Bearish setups have been hard to find.
My favorite bearish setup is in CECO, an education stock that had a big runup since November of last year. Over the last few months, CECO has ceased its upward trend and has [...]
Posted on March 31, 2009 by Adam
I noticed near the close yesterday that Wells Fargo, (WFC: 27.69 -1.35%), was showing an enormous volume of puts traded.
The April 11 puts traded 130,000 contracts, which is 13 times the open interest. Even if you don’t normally trade, or even pay attention to options, you should still take note.
When this many puts are traded, [...]
Be on the lookout for an extended pullback.