How Do We Know a Trend is Ending?
A savvy developing trader posed this question to me, and it deserves a thoughtful answer. My reply: Think in terms of structure.From before the open, I raised the possibility that today could be a trend day to the upside. Even when we were selling o...
New TraderFeed E-Mail Policy
A couple of months ago, I posted to the blog that I would not be able to respond to the growing stream of emails from traders. (My current inbox is shown above). Basically the problem is one of numbers: if only 1/2 of 1% of readers emails me with re...
Midday Briefing for July 30th: Consolidating the Upside Breakout
Here we see the S&P 500 e-mini (ES) futures on the day via Market Delta. Overall, we've seen more volume transacted at the offer than bid (bottom histogram), though selling ahead of the Treasury auction cut into that. We also see a rising volume-...
NYSE TICK: A Look at Buying Sentiment in an Uptrending Market
One characteristic of trend days to the upside is that the NYSE TICK--the number of NYSE issues trading on upticks minus those trading on downticks--will persistently stay above zero, with many readings greater than +800. That shows that institutions-...
Comforting the Afflicted, Afflicting the Comfortable
Readers of the case studies from my Psychology of Trading book know that I see the role of psychologist as comforting the afflicted and afflicting the comfortable. When people are down, the goal is to help them find their strengths and the energy and ...
Morning Briefing for July 30th: Testing the Highs
One of the themes I touched upon several times yesterday was the resilience of the stock market in the face of themes that would normally be bearish for equities: falling commodities and the drop in share prices in China. When markets fail to do what...
Evening Briefing for July 29th
* THEMES FROM WEDNESDAY'S TRADE - On the heels of a steep drop in China's share market, we saw an unwinding of many of the risk trades. The U.S. dollar rallied vs. the euro and commodity prices tumbled. Despite these dynamics, the U.S. stock market ...
A Few Favorite Posts From TraderFeed
It was a great live chat with Charles Kirk; my thanks to him for setting that up. Thanks also to the 400+ participants who contributed excellent questions.One question asked by Kirk that caught me by surprise asked my favorite TraderFeed post from the...
Nice View of a Range Day in the Stock Market
I wanted to post this Market Delta view of today's ES market, because it very nicely captures the central identifying features of a range market: a relatively flat volume-weighted average price (VWAP; red line); a narrow trading range and value area (...
Midday Briefing: A Look at the Smaller Caps
One of my favorite indexes to follow is the Russell 2000 (IWM, above). Small and midcap stocks act as a kind of sentiment gauge among portfolio managers who are trading equities. If they expect growth in the economy, they will invest in companies and...
Morning Market Briefing: After a Drop
Here you see how we're setting up for today's open in the S&P 500 e-mini (ES) futures. The multiday range that has been the subject of several recent posts stands out here. We tested the lower end of that range (the 7/24 lows) on the heels of a l...
Sector Update for July 29th
Last week's sector review noted that the bullish intermarket themes were in unison, with impressive breadth to the market rally. That strength has carried over to the most recent trading week, as most of the sectors have retained positive Technical St...
