A large part of successful trading is understanding how others are positioned in a stock and using that information to your advantage. One of the most common triggers for opening a short position in day trading is a drop of multi-day support. The idea being that many longs will have stop orders below this level, which will lead to a … Read More
I Love Being Wrong–SODA
One of three In Play names discussed in today’s AM Meeting was SODA. It was gapping up to 36 which is a longer term resistance level. My initial thought was the news didn’t seem like a big deal and it would be a nice short on the Open against this level. As the market opened it traded a few cents … Read More
Was It Worth Trading?
After the market closed yesterday P released their earnings. It was immediately sold aggressively down to 12.50. A controlled bear flag developed with the next major support about 2.5 points lower. I noticed on the StockTwits stream @ldrogen say the conference call was not going well at all. From the back of my mind emerged my negative bias having watched … Read More
Technicals Trump The Tape in Financials
We consider three things when making an intra-day trade: The Tape, The Technicals, and the News. How each of these factors is weighed depends on the particular setup, the type of stock and current market conditions. JPM was the first large financial to report numbers on Friday. The numbers were not particularly good and it was showing weak price action … Read More
Questioning the 50-day & 200-day MA’s
My recent post on Indicatoritis discussed how some traders rely on indicators incorrectly. I believe that still holds true, but I was questioned about some common moving averages on the heels of that post. So in this video, I want to discuss moving averages, and more specifically, two moving averages which are commonly accepted by traders as important: the 50-day … Read More
Bears Don’t Exist, Think Like a Bull
This is a guest post from Fred Barnes aka @DCDaytrader: I recently had a conversation with a few somewhat novice traders. For us traders who don’t have the 2007-2008 market experience on our resumes, we’re looking at the recent market activity in awe. Watching the quote screen (of the $ES_F) in August (2011) required the skills of a speed reader. … Read More
Is this an inverted Head and Shoulders pattern on the S&P?
Adam looks at Head and Shoulders patterns and points out an important nuance.