This weekend marks our Grandson’s sixth birthday. Six years? Wasn’t I just writing you about his birth? Where did six years go? I don’t feel six years older – oh wait a minute, yes I do. Have you noticed how as you get older everything gets “further away”? Like the floor for instance. Seems to me it was a lot easier getting down to the floor a few years ago, but now it seems like an awfully looong way down (and even longer getting back up). Or the items on the top shelf of the cupboards. When did they get so far away? Am I shrinking? I never had to get a stool to get those things? Are you sure the cupboards didn’t grow? Where’s my tape measure…? And books! I used to be able to read with my elbows bent. What’s up with that? Did they start making the text smaller in print? Thank goodness Windows has a magnifier, not that I have to use that yet, but at this rate it’s good to know it’s there. Who knows what the next six years will bring? I don’t know, but I have
http://www.supportandresistance.com/tradingblog/big-weekend-edition-aging-trading.htmlSunday, September 8, 2013
Thursday, September 5, 2013
Volatility Selling + Low Volumes = B-Wave Top
Volatility Selling + Low Volumes = B-Wave Top The equity markets held their ground on Thursday as treasuries and precious metals sank deeper into the abyss along with the Euro as the U.S. Dollar rally kicked it up a notch. The name of the game on Thursday was “selling volatility.” Statistically, two weeks prior to options expiration is the time when front month volatility gets crushed. This could get upended or pushed out a bit if the markets remain “wishy-washy” towards the yes or no vote on military strikes in Syria. What did strike me were the methodical program traders that moved in today to bring volatility back down. Not that this is totally out of line, but the across the board “vol crush” may bounce back and bite the hand that feeds them. There is good reason for the uncertainty in the market at the moment. Whether or not we all agree or not doesn’t prevent the underlying concerns to evaporate. Volatility selling may turn out to not be the trade i
http://www.indicatorwarehouse.com/96401/volatility-selling-low-volumes-b-wave-top/To Every Season, There Must Be Reason……..To Trade!
As I sit here, my window is open and a draft floats gently by. There is something different about it today. A quality that is both untouchable and at the same time, completely knowable. The current of air today has a soft undertone, rather just a glimpse of the soft end to Summer and the transition to Fall. Just as the leaves will change and a chill will eventually come, the landscape will look different. As in the world, forex also has its seasons. The market can dramatically change from one period to the next. For myself, the trading year always begins in Fall. This period, which ends the summer trading session, generally sees volume return to many markets. I personally mark the end of summer at Labor Day, but much of the time we don t see the full Fall volume return until towards the end of September. Just as people take vacations during the summer months, the markets almost invariably see a sharp drop in volume. Fall sees this activity return to forex, as Europ
http://www.indicatorwarehouse.com/96347/to-every-season-there-must-be-reason-to-trade/Wednesday, September 4, 2013
Monkey See, Monkey Do – Short Covering Rally Gone Wild
Monkey See, Monkey Do – Short Covering Rally Gone Wild According to Miller Tabak’s chief economist Wednesday’s rally was due to “Equity investors appearing to react to a positive outlook being reflected by Ford’s decision to boost output – itself a sign that a Fed tapering would arrive as the economy is strengthening, no weakening.” Seriously? Did anyone bother to check volumes? If there was a flood of buyers pouring into the market on Wednesday they all must have been trading somewhere else. I doubt the buyers on Wednesday were investors seeking to jump in on all stocks because Ford’s decision to increase production in the 4th quarter. It appeared more like an avalanche of basket buying of stocks. Did anyone notice that when the algorithmic traders turned on computers (30 minutes into the session) they had one objective – cover shorts. In the broader indexes I have been tracking the development of a “B” wave rebound rally within the ongoing 4th wave de
http://www.indicatorwarehouse.com/96373/monkey-see-monkey-do-short-covering-rally-gone-wild/Tuesday, September 3, 2013
Is a Rotation Out of Treasuries – Into the NASDAQ Gang of Six Underway?
Is a Rotation Out of Treasuries Into the NASDAQ Gang of Six Underway? One trader’s garbage is another trader’s treasure. Sure seemed that way on Tuesday as the markets jumped higher on the “no news is good news” development picture on Syria. But then gold had enough selling and moved solidly back above $1400, crude had enough selling and pushed back above $108. The DJIA and Russell 2000 briefly went negative, with both leap frogging their way back to higher by the close. The Gang of Six + Facebook look have taken on the leadership roles for the NASDAQ 100 and to a lesser extent the S&P 500. Facebook’s upgrade from last Friday continues to support the somewhat skewed “flight to quality” as money drains out of the bond market. It will become increasingly difficult for the gang to shoulder the burden as the bulls torch bearers. When this becomes apparent the disappointment should resemble a smack down and will likely be kicked into gear by an external even
http://www.indicatorwarehouse.com/96340/is-a-rotation-out-of-treasuries-into-the-nasdaq-gang-of-six-underway/Monday, September 2, 2013
Big Weekend Edition – Labor Day Weekend
Happy Labor Day weekend, folks! This edition has a lot of charts, lots of markets are moving and shaking. This last week was our Strata’s Annual General Meeting. If you haven’t had the privilege of living in a strata environment before, the AGM is always a real treat. I’m saying that tongue in cheek of course. There’s nothing like getting a couple dozen of your neighbours together to discuss how their money has been spent and how you’re going to spend their money next year. I’ve been involved in a lot of strata’s over the years and I know how quickly they can go bad. Many Strata Councils have the tendency to develop a “God complex” and start implementing one by-law after the next in an attempt to legislate decency. Of course it doesn’t work. If the Federal Government has been unable to find ways to make people be decent towards one another what does a puny Strata Council think they’re going to do? For this reason I usually volunteer to be on Strata and I was Pres
http://www.supportandresistance.com/tradingblog/big-weekend-edition-labor-day-weekend.html