A look at some time of day inflection points in the broad market.
The Bottoming Process
There is a lot of money to be made in a stock that has been beaten down. Generally, after a stock has been destroyed for some fundamental reason it will have some type of longer term bounce where traders can gather information from its price action over the course of several weeks. In the case of RIG it bottomed back … Read More
Don’t Give Away An Edge
The market had a broad rally on Tuesday. When we came into the office on Wednesday we cautioned our traders against chasing moves in stocks that could be a bit overextended when the market opened. Our thought process was to look for safer long entries based on the prior day’s support levels. I think you probably know how the rest … Read More
Intraday Trading Principle
Basic Principle: If a stock moves quickly in either direction accompanied by a huge surge in volume then all trades placed in that stock should be made on the side of the initial move. Examples: MON (11/9/09) TIVO (3/4/10) (5/14/10) V (6/21/10) GS (4/16/10) (7/15/10) BP (6/9/10)
A Small Rip Can Lead To A Big Chop?
I foolishly decided that buying NTRS on a pullback to 48.50 this morning was a great risk/reward trade. NTRS had broken its recent downtrend yesterday and closed at the high of the day on good relative volume. In my many years of trading this has proven to be a high percentage play. BUT during the past three weeks I have … Read More
Unusual Prices Are A Better Bet In An HFT Dominated Market
I was trading FCX this morning. I noticed a clear buyer at 60.90 during the Open. In the late morning the buyer dropped and I got short. FCX traded down about 30 cents over the next ten minutes. It then did a bit of a short squeeze up to 61 before trading down to its opening price of 60.20 From … Read More
Back to Basics (Part One of Many…)
The first in a series of blog posts on the building blocks of technical analysis
First Ticks – Wrong Ticks
A look at a basic market tendency which forms one of the building blocks of price action.