Tradingmarkets Top 5 Of The Day
Welcome to TradingMarkets.com Top 5 of the Day!
In this nightly feature, the editors of
TradingMarkets select the 5 best and most insightful (and sometimes humorous)
excerpts from all of the articles and blogs that have been published throughout
the entire day.
Here are today’s selections:
Dave Landry from:
Here’s 2 setups for this oversold market
“…They’re aren’t many
guarantees in trading. However, the one thing I can guarantee is that sooner or
later a stock will gap strongly against you. So what do you do? Well, if you are
disciplined, then you might be able to improve your exit or in some cases,
actually still profit from the trade.
On bad news (or more accurately,
news that is perceived as “bad”), stocks can gap sharply lower. However, many
times this gap can be the panic low (or near low) for the day. The stock then
promptly reverses and rallies. In some cases, the stock can actually close
higher. Knowing this phenomenon, you can enact a damage control plan. Here’s
how…”
Click here for more…
Jack Rothstein from:
Swing traders love stocks like these
“…The best way to
play right now is to be long and short. It is probably wise to begin the process
of reducing long positions and increasing short exposure. That is the feel of
the current tape. All major market benchmarks trade below all key inflection
points. The evidence clearly favors the bears right now. The season of strength
beckons…”
Click here for more…
Adam Warner from:
Here’s a 2-week strategy if you’re bullish
“…So
let’s say you’re bullish, or at least of a mind to buy this dip for a trade. If
it’s truly for a trade, and not for an “investmentâ€, then you likely have a
point target, or net gain on the trade in mind. So instead of buying some stock,
why not sell some October puts? The combo of a weak market and increased
volatility has served to pump up the prices. October expiration has only 2 weeks
to go; any premium you collect, particularly for an out-of-the money put, will
evaporate real quickly in any sort of market upturn. So if time the trade
correctly, you will probably “earn†the premium soon after…”
Click here for more…
Austin Passamonte from:
Watch these charts for entry signals
“…The
return of normal market volatility is a long-awaited blessing to intraday
traders. This morning’s gap-up open has potential to run directionally or fail
miserably with about equal odds. Be patient and wait for entry signals near key
price levels, and then trust the tape to move far enough for solid profits to
accrue. Every day may not be stellar to trade, but enough of them will be to
make our jobs much easier than they have been in quite some time!”
Click here for more…
Mike Kestler from:
Setups for daytraders who want action
“…The
big mover of the day for me was Refco Inc (RFX).
Refco is a financial services company that came public in August of 2005. News
from the company related to undisclosed financial dealings of the CEO. Shares of
RFX fell $12.96, a drop of 45% to $15.60. The initial release said that the CEO
had paid off the receivable in question and that none of the events uncovered in
the internal review would affect the operations and profitability of the
company. I looked at this news and felt the stock could possibly bounce. When
RFX opened, I was looking for a good entry point to go long in anticipation of a
bounce. When RFX failed to rally and large sellers began to appear in the NYSE
openbook and the inside quote, I realized the opportunity was to the downside.
I was able enter a number of
short side trades as well as buying a few bounces in the morning. RFX was
extremely active the last few hours of the day. I became involved again when RFX
appeared on my scanner as a new day low at $18.40. Earlier in the day RFX had
bounced up from $18.50 and I had taken a long scalp for a 25 cent profit. Once
RFX reached $18.40, large sellers began appearing and I was able to enter a
number of short trades for 40 and 50 cent moves…”
Click here for more…