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 3, 2009 by Adam
Out of all the indicators and oscillators available to swing traders these days, few are as widely accepted and revered as the marvelous MACD. The MACD, which stands for “Moving Average Convergance and Divergance,” is used to guage market posture. This indicator can help you determine whether or not a particular stock is overbought or [...]
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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 28, 2009 by Adam
I’m always looking for ways to increase my chances of placing winning trades. One way to tip the probabilities in favor is buying assets that are displaying relative strength and selling/shorting those that are displaying relative weakness.
What is relative strength exactly? Relative strength is the tendency of a stock, group of stocks, or asset class [...]
Posted on March 12, 2009 by Adam
Over the past three days, I have started to notice some singals that have me bullish on stocks for once. I’ve been consistently saying that the market had been getting more and more oversold, which would likely result in a sharp rally. We got that rally on Tuesday, which has followed through nicely over the [...]
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Posted on February 25, 2009 by Adam
Good Morning Traders,
Yesterday’s sharp rally came as no surprise to me, given the grossly oversold nature of most broader market indicators. As such, I was able to reap the rewards by positioning myself slightly to the bullish side.
After the rally, we have inched our way north from extreme oversold levels, but an enormous amount of [...]
Posted on February 21, 2009 by Adam
I’ve written in the past on the deleveraging of the debt bubble that has contributed to this financial crisis, but I was reminded of just how bad things are when I read an article in the New York Times talking about how Harvard is managing its endowment portfolio during the downturn.
Like all Universities, Harvard generates [...]
Continue ReadingPosted 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
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
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, [...]
Be on the lookout for an extended pullback.