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:
Kevin Haggerty from:
These are some key time ratios for next week
Suffice to say, there
will be volatility and opportunity into next week. I would imagine the Plunge
Protection Team is ready to step in and stabilize should there be a downside air
pocket accelerated by this new hurricane and the heavy media news. The Generals
certainly want the SPX to close at a minimum above the 12/13/04 close of
1211.92.
Click here for more…
Jeff White from the Stock Bandit blog
entry entitled:
My Trading Routine
“…Once
the closing bell sounds, I get away from the computer fairly quickly. I do not
stick around for earnings announcements, as I never hold stocks going into them
anyway. After staring at my screens so long, I want to get out of the house!
About 90 minutes after the close, I begin my research and scan for new trade
setups via TCNet stock charting software. I run scans for custom criteria to
narrow down the list, but primarily I am manually scrolling through hundreds of
charts looking for chart patterns I like. This process takes well over an hour,
and then I begin to compose my swing trading newsletter. The newsletter takes
another hour, and then I publish it to my website. Now I have my swing trading
candidates for the following day as well as some potential daytrades which I may
have found while scanning the universe of stocks.
Finally my work is done for the day, and I can eat dinner and kick back for some
serious reality TV! If you don’t have a DVR or TIVO, I highly recommend getting
one!“
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Steven Gabriel, MD from the “Almost Trading
For A Loving blog entry entitled:
Risk is the Currency of the Markets!
“…If
you have ever seen the poker movie “Rounders†with Matt Damon, it is easier to
understand. Matt Damon’s character Mike McDermott is a phenomenal poker player;
he has a statistical edge in the game. But, he is broke. Why isn’t he wealthy?
Casino’s have a statistical edge in their games, and they have lots of money.
So, why wouldn’t anyone (including stock traders) who have a statistical
advantage in what they are doing make lots and lots of money. The answer is, you
need more than an edge, you also need risk management. You need to understand
your risk profile…”
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Dave Goodboy from:
No Guts, No Glory!
“…The
hypesters and fear mongers are out in full force today regarding hurricane Rita.
I have stepped back into the game, trying to capitalize on the waves of good
news that may surprise. Shorting oil again at 67.80 averaging my cost to 66.88.
As a speculator, I see this trade as taking over uncertainty based on my
conviction that oil has topped and Rita will prove to be not as damaging as
projected (if it all). No guts, no glory. Just remember, these trades are highly
risky, be sure to position size properly!”
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Kathy Lien from
If important refineries get hit by Rita, here’s what happens next…
“…These days, we feel
more like meteorologists than strategists – Hurricane Rita was just upgraded to
a Category 5 hurricane and the evacuations are beginning in both Texas and
Louisiana. The eye of the storm could pass over Houston, which is the home of
some very important refineries. If those refineries are damaged, it could cause
another upsurge in oil prices. Yet even if the damage is minimal, a category 5
hurricane will certainly cause some evacuations of refineries in the Gulf —
which would halt production at a time when it is already at tight capacity...”
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