Know your uncle point and honor it. I have a pain threshold and if I reachthat point I must get out.–Marty Schwartz, from Market Wizards, by Jack Schwager
Looking For Continuation
Yesterday was very quiet until the last hour, when
program buying
bumped stocks up into the close. But the market remains narrow–the big techs led the way once
again. Right now, only 34 percent of stocks are over their 200-day moving averages. I’m sticking
strictly to day trading–no overnight positions.
Laps Down 5% or More
In last Thursdays article I mentioned how volatility and the VIX have specificinherent features that allow you to identify short term reversals in the stockmarket. Today, we will look further into this topic.As was discussed on Thursday, all volatility is mean reverting andautocorrelated. We also d
Cup-and-Handle Trading Techniques For Swing Traders
The cup-and-handle is a reversal pattern that frequently precedes big rallies. Here, we show you how this pattern is formed, as well as how to enter trades and limit your risk in these situations.
New Treatments, New Opportunities
Looking for the next hot medical stock? The medical companies who develop innovative
treatments for the aging baby-boomer generation will have an big edge in tomorrow’s market.
We’ll look at some of new drugs and the companies to keep an eye on in the coming months.
How to Use Volatility to Your Advantage
Tonight, I will begin a series of articles on how to use volatility to your
trading advantage. The most important feature to understanding how to use volatility is that it
is mean-reverting.
Connors VIX Reversal (CVR) V
On a day that combines a Double-witching option expiration, continued Latin American woes, and Clintons interrogation, its interesting thata mysterious futures buyer pushed up the overnight S&P 500 futures more than a dozen points early in the morning. Maybe its Alice Rivlin from the Federal
Shorts on D-Mark and T-bonds; S&Ps in the buy zone
S&P 500 futuresShort term: The March futures [SPH9>SPH9] are in the buy zone (1240 or lower). Because volatility has increased to October 1998 levels, its necessary to use wider stops (no closer than 1205) or trade smaller positions to avoid getting stopped out of the market amid all the noise.Long
T-bonds Up; Other Markets Neutral
Look for short-term move in T-bonds on Monday.
After a wild Monday,
After a wild Monday, which saw the market up big, then down big, the bottom line is that the market finished lower for the third day in a row. The high volume tells me the institutions were out in force, which should make for interesting trading action in the coming days.
