Trading Markets

Anatomy of a Trade

The $SPX has been churning in the anticipated key price zone (1396-1417) for ten days and only closed above the zone once at 1418.26 on Tuesday. What will happen next?

Red Alert in Key Price Zone

The current $SPX rally from the 1257 3/18/08 low has certainly lacked significant volume. See what may be in store for the markets as the economy continues to show signs of weakness.

Key Prize Zone Short Bias

The edge is definitely to the short side into the S&P 500’s key price zone, and there is also key time symmetry through next week.

Trading is a Game of Probability

The Generals have been most active in a universe of 50 or so mega-cap blue chip stocks, as they all continue to read the same playbook and move like a “herd”.

The 3 Primary Factors for a Short Term Reversal

The $SPX had advanced +10.3% in 14 days to a key price (1384-1386) and time zone (4/8-4/9), and in the previous commentary I said the highest probability was a reversal, not acceleration through the price zone….

Key Strategy for 1st Hour Trades

Treasury Secretary Henry Paulson hit the talk shows over the weekend laying the ground work for his announcement on Monday that there will be a change in the oversight of financial institutions, which of course will be led by (you guessed it) our big-brother government.

First Hour Reversal Strategy

There are just two trading days left in the quarter, so the Generals and Hedge Funds obviously have a reason to hold these levels…

Daytraders SPX Homerun

The Fed is attempting to inflate the economy out of trouble again, as it has done every downturn since Fed Chairman Volker did the opposite to choke the inflation.

A Winning Strategy for All Markets

Yesterday started with a big discount opening following the news that BSC was insolvent, and JP Morgan helped by the Fed, bid $2 for the firm.