For the past few days the SPY’s were trading in a fairly tight and narrowing range. Traders were waiting for them to breakout from their narrowing range. Yesterday afternoon the sellers overwhelmed the buyers causing a break to the downside. The 89 support level was broken with force. In after hours action the SPY’s traded down an additional 2+ points. … Read More
A Market Bottom Versus An Economic Foundation
One morning before work about a 2 weeks ago I switched from CNBC to Fox News to get a weather update. I was a little early, since Mike Woods usually comes on at about the 8th minute of every ten in an hour (6:18, 6:28, 6:38…) and I caught their quick daily business analysis. The lady reporting was ecstatic about … Read More
Risk: SO Not Just A Game
During a good film session today with a senior trader I got to get a clear look at how quickly I lose control of my risk and put my trading day in complete jeopardy. The film was from Thursday of last week when I was daytrading SRS (the real-estate ultrashort ETF) actively. To give you an idea of how the … Read More
“Rut” = Kick in the Butt, Swift Knee to the Gut
Dictionary.com defines a rut as, well the third definition at least, “a fixed or established mode of procedure or course of life, usually dull or unpromising: to fall into a rut“. And that is exactly the definition I was looking for. Like any human being I get into ruts. Which is fine, since that is human nature, no? But I … Read More
Hurricane Mutter
Gustav. Hanna. Ike. What’s next? Peter? Connor? Maybe Hurricane Gilbert? Definitely maybe a Hurricane Meghan. Whatever the name, let’s take a moment to welcome hurricane season. Such a time that if not before had garnered credibility definitely has after 2005. I mean even our President takes notice now, enough so to notify the FEMA head. For us in this lovely … Read More
Yes, You Can
Last night’s speech by Sen. Obama inspired me as a trader. Now, this blog post isn’t meant to be a political statement, but as traders we are perpetual learners. We are individuals with a thirst for knowledge, which means we are able to learn from so many non-traders that we observe. So let’s talk about what we can learn from … Read More
Predictions
We received an email from a very accomplished young man the other day with an obvious passion for trading. He had traded different products and still had not finished his studies. I am looking forward to meeting him. When we are interested in a candidate we ask that they answer some questions. This young man answered one of our questions … Read More
LDK
LDK traded well today. I have witnessed many intraday reversals and fake breakouts and breakdowns trading LDK in the past. My sense is that many big time swing traders take big positions in LDK and when the stock starts to reverse they hit the bids well thru to exit. It causes choppiness. I didn’t see the choppiness today. LDK was … Read More