The SPX was +13.4% in 2012 and +18.6% YTD as of the intraday 7/23/13 1698.78 high. It closed the month +4.9% at 1685.72 and +18.2% YTD. It is an artificial market inflated by the Fed, and the ending will be ugly. How can you not significantly reduce the percentage of your long equity portfolio allocations… [Read More]
Day Trading
Heads or Tails Mr. Bernanke?
The SPX declined -7.5% from the 1687 5/22/13 symmetry high to 1560.33, and has now advanced +7.7% [low to high] to a 1680.19 high. The initial leg down from 1687 to 1598 [-5.3%] reversed off the 50DEMA and made a 1654 high [+3.5%] on 6/18/13, which was the 51.6 month Pi time symmetry [6 x… [Read More]
Market Reverses in Time Symmetry Zone
In an earlier commentary last month I was quoted as saying “There is an incredible herd mentality that the Fed will keep the pedal on the QE program etc. which is the so called “magic put” for the market. However, the herd mentality has been and will be wrong again this time as the Fed… [Read More]
How to Avoid the Pitfalls of a Day Trader
When most people think of trading there are a few staple adjectives that always spring to mind. “Risky”, “stressful” and “volatile” are just a few examples of words that are synonymous with the industry. Whilst there are many different approaches to the markets, and some can be said to be none of these things, more… [Read More]
The Primary Market Tools
You can not predict markets with any high degree of success, or the duration and extent of a market move, but you can anticipate and pinpoint high probability reversal or acceleration price and time zones with a positive mathematical expectation of success. However, when a market nears a potential turning point you must look for… [Read More]
Day Trading: Why an Emotional Rollercoaster is Addicting
As traders, we often face major emotions when placing orders in the market. But how many of us really explore the emotional issues that go into day trading? Emotions can, and must be dealt with. One way to deal with the emotions of trading is to have a trading system in place which is used… [Read More]
How the Intra-Day Momentum Method can Help You Make Better Trading Decisions
The Intra-day Momentum Method was designed to help determine the best way to trade a particular stock / ETF, whether it is trend-following or reversion to the mean, in connection with a low-to-mid frequency intra-day trade. In order to determine which method had worked best over time, I created an algorithm that would find a… [Read More]
The Red Alert Time Zone
The SPX finished last week +2.0% to 1666.12 and has advanced 17 of the last 21 trading days [80.9%] from the 1556.03 low at the 50DEMA on 4/18/13. The “Fed Rules’ as it has been able to continue inflating the “bubble” despite the negative economic and fundamental misses/below expectations. There is an incredible “herd mentality”… [Read More]
Determining Daily Intra-Day Direction – Is it possible?
Successful speculation starts with observation. Instead of looking at charts, I have designed a methodology for determining intra-day direction based on ‘measured moves’ and created applications to answer my questions regarding trade-able tendencies and to assist in my research. The first thought that comes to mind, when considering the question – “Is it possible to… [Read More]
Fantasy Markets is The Game
The SPX was +2.0% last week closing at a new cycle high of 1614.12 on Friday. This was accelerated by the NFP “fantasy report” from the Bureau of Labor Statistics (BLS), which you can never distinguish whether it is reality or fiction. Regardless of the report’s credibility the market reaction was +1.0% for the SPX…. [Read More]