One strategy I’ve been employing lately is buying strength. While many have been successfully “buying the dip",” buying the dip can kill you if you’re wrong. I often prefer buying strength. Buying when the market is up and internals are strong.
I only started buying this rally on March 2nd. I mentioned that it was tempting [...]
I’m putting myself out there a little bit with this post. I had a very simple thought today about the relationship between volatility and demand for stocks. “Wow, I can’t believe CC has not put 2+2 together before.” I’m surprised I’ve never had this thought before, but I’ll share it for the benefit of others [...]
Whenever I cruise the world of trading blogs, one common theme I often read about is how the government is propping up the market and that impending doom is coming to the stock market. Many of these posts come from individuals with substantial trading experience. It might come from a well known blogger or posters.
Here [...]
Continue reading about Is The Sophisticated Retail Trader The Dumbest Of All?
This post is an addendum to yesterday’s post on big picture trading themes. I picked up a copy of the IBD 100 today. IBD is a great way to shortcut the process of locating momentum stocks and I highly recommend investing $3 to pickup a copy on Saturday morning.
The point of this post is [...]
Continue reading about Plugging the IBD 100 into my Trading Themes
When I trade, I always try to keep a bigger picture in mind. While I trade on technicals, I still do keep a broader fundamental view. But unlike fundamental traders, I let the technicals tell me what the major trends/themes are and then I may read up a bit to understand the bigger picture. Many [...]
Continue reading about Investing Themes: Identifying Primary Trends and Secondary Trends
To make money this year, I’m going to need to catch at least two waves. I’m defining a wave as a period of time where the major market indexes trend without correction (ie., a shakeout).
Here is a visual:
In 2009, the big wave was from March-May. There was another good opportunity during July-August. There [...]
For those that have been following my blog for the past few months, you know that my primary indicator has been China. So long as the China charts were ugly, I was staying out of the market. The China charts are looking much better and therefore I have initiated new positions today. I’m also somewhat [...]
I have a non-stock related project I’m working on which will take quite a bit of my time over the coming weeks. For the timing being, I will be posting on an ad hoc, as needed basis (e.g, last night I did not do a Sunday night post). To the extent I reenter the market [...]
Today is yet another example of why I remain in cash. As a swing/trend trader, is it very likely that I will make money on this kind of tape? Down, down, down and then rocket ship up. If your timeframe is in hours (assuming you are skilled at these kinds of trades), perhaps you [...]
It appears some sort of short selling rule is in the works. I personally find it offensive and most Americans should as well. I guarantee that the regulation will be all window dressing and no substance.
The old men in Washington don’t understand that a lot of Americans are no longer getting their news through [...]
