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:
Gary Kaltbaum from: Here’s what a real upside reversal looks like
“…I wish I had better things to say, but hey, I just interpret the action. Unless we see a monstrous high volume reversal day to the upside, stay clear. A high volume reversal to the upside would wash out all sellers for the near term. I don’t predict an occurrence like that. I react to them. What you would be looking for is a very weak open on so-called bad news…and a reversal to the upside. . …” Click here for more…
Joe Corona from: This is the strategy I’d focus on now
“…In the early fall people began to come to their collective senses, and the market started falling. It began picking up momentum in October leading to the climactic sell off of October 19th. All the stock exchanges closed, and the only hedge available to the entire world was the S&P pit at the CME (and to a lesser extent the “Maxi†at CBOT). The entire world tried to lay off their risk on 500 guys from Highland Park, and the market collapsed. Those guys stood in there and made a market when everyone else ran for cover — and for their efforts they got blamed for the crash.
That day and the days that followed are burned into my memory. People wiped out in minutes, guys crying in the elevators, vomiting in the bathrooms. We had our “crash†in the bonds the following day. When the Fed rushed to provide liquidity the following day (and orchestrate some futures buying — the birth of the “teamâ€), bond futures were 10 points higher, eurodollar futures were 330 bp higher on the open. Many people in the interest rate complex were then wiped out, as their brethren in the stock indices had been the day before (I got buried also), and the whole scene repeated itself.
That experience scarred me for life and left me very risk averse, which is why I like to trade options. Yes, they are a pain in the ass, yes, you get pounded with “ticket charges†and sorts of fees, yes, and they are difficult to understand sometimes. But the bottom line is that you can sleep at night, and that is worth something…” Click here for more…
Kevin Haggerty from: Year-end spin will try to offset negative market
“…From this current oversold condition, the spin will get louder about the best 6 months of the year–November-April–Christmas rally and institutional markup to make the year 2005 close on the positive side (above the SPX 1211.92 12/31/04 close). Stay with the daytrading/short-term posture in the major indices. This is option expiration week in addition to multiple time symmetry on 10/20 (+/- 2 days) so there should be some more good intraday volatility….” Click here for more…
Harry Boxer from: Here’s the next level for the S&P to rally to
“…Stepping back and reviewing the hourly chart patterns, the indices followed through on Thursday and Friday’s rally. Although they were severely tested mid-day, they came through with flying colors and ended up positive on day, successfully retesting the 40-day moving average on the hourly charts.
Overhead resistance exists around 1190 on the S&P, which it closed just beneath, and 1550 on the NDX where we also closed. So, we’ll see if they can pound through those resistance levels tomorrow and extend the three-day rally…..” Click here for more…
DeWayne Reeves from: To make money, don’t focus on money
“…Consider how much money trades hands every day in the markets. The market being no respecter of persons, is just as happy to pay you as it its Warren Buffet. Why settle for $1k if you can earn $10k? “Because I’m not that good” So get better! This site alone offers you incredible tools to become a better trader. In fact, you can probably learn more than you need right here, to double or even triple your income.
Trading is a skill. You need discipline, desire, knowledge, but most of all, you need to raise the bar. See yourself as successful. Don’t focus on the money, as I’ve mentioned before, better to focus on the noble things your profits can accomplish for your family and the world….” Click here for more…