Trading Stocks & Personal Development: Making the Complex Simple.
At the first sign of a market sell off or correction, my eyes leave my well developed focus list and turn to the CBOE Volatility Index, otherwise known as VIX. During market selloffs, it is crucial that you learn how to trade VIX.Why do I love trading the VIX during sharp selloffs and corrections? Please... Continue Reading →
I am offering today's Trade Report, which features my plan for Monday and the coming week, free to blog readers today. Enjoy!January 5, 2008Market NotesThe market is overbought. I'll get back to that, but first let's take a look at the overall picture. The market (via SPY-SSO) is putting in a healthy looking bottom pattern.... Continue Reading →
Many broken commodity plays, like the ag sector, have made big bounces today (as of 11:35 AM ET). Keep an eye on volume. One of two things is going to happen:1. A low volume bounce which will be a "dead cat" signal. If this happens I will intitiate shorts in stocks like MON and TRA.2.... Continue Reading →
There has been some confusion that I would like to clear up. Some of you think that I am bullish on the market because I am making long play on the S&P 500. Nothing could be further from the truth. This is a short term bounce play within a downtrending market. Until the indexes can... Continue Reading →
If recent history is any indication, the next time the stochastic indicator hits an extreme oversold reading of less than 20, it will be time to buy the S&P 500. Since October the SPY has hit this level 6 times and made at least a three point gain in 5 of those trades. That amounts... Continue Reading →
While I try to stay away from the chatter of market pundits, I do like to keep an eye on what a few select bloggers and "market gurus" that I respect have to say. What surprises me today is that I am hearing, even from those who I respect, that a bottom has been made.... Continue Reading →
As I expected, last week's bounce was prone to failure and it looks like we are going to test the late January lows. I am weighted to the short side, so you can bet I am giddy about price acton over the past two days. As we move towards the lows, I will likely start... Continue Reading →
Analysis of the weekly SPY chart leads me to believe the market still has room for a bounce before the next downturn.Key factors in support of bounce:1. Bounce at major price support2. Stochastic oversold crossover developing3. More room to move until resistance reached.Note that each time stochastic has reached oversold levels and crossed we've seen... Continue Reading →
I was stopped out of SKF and bought UWM and DDM, which are ultra long the Dow 30 and Russell 2000.Looks like this might be the capitulation bounce we've been waiting for.Update: A few readers have asked how I timed the DDM trade so perfectly. I should have posted my entry prices. I did not... Continue Reading →
I have decided to take on two more small long positions, BVN and HWAY. Both have handled the bad market well. HWAY is in the medical lab sector, which has been somewhat of a safe haven in recent times. While badly beaten stocks are usually the best short term bounce plays, I don't have the... Continue Reading →
