Adam looks at Head and Shoulders patterns and points out an important nuance.
A LULU Lesson
There wasn’t a lot of fresh news today so the focus of SMB’s AM Meeting was Second Day Plays and Technical Setups. SDPs are setups in stocks that were In Play the prior trading day and tend to offer some well defined opportunities for a few more trading sessions. TSs are setups based on a longer time frame technical pattern … Read More
Extraordinary Situation; Ordinary Trade.
In yesterday’s post, I made a case for a bounce play in the Japanese stock market. Last night’s extreme move makes this call look kind of silly in retrospect, but I want to highlight some important points and lessons here. First of all, this really highlights the difference between “armchair quarterbacking” or “time machine trading” (as we like to call … Read More
Market reactions to “Acts of God”
In my daily report for Waverly Advisors I issued a short-term buy on the Nikkei 225 futures. Obviously, this is a controversial trade fraught with difficulty, but I thought it might be interesting to think about this type of situation from a technical perspective. First of all, please read the link above. Before reducing the situation to a set of … Read More
AAPL: A Case for Mechanical Trailing Stops
A look at how a mechanical trailing stop can help with exits from trending plays.
Finding a trading edge: a case study
Finding a trading edge in the SMB Radar’s In Play list.
My List: Some Ideas for Finding Tradable Edges
A wrap up to the series on randomness in markets, with some practical trading advice.
Traders ask: VWAP?
A brief look at VWAP: what it is, how to calculate it, and some ideas for how you might use it in your trading.