S&P e-Mini & Market Structure The S&P e-Mini is my favorite market to trade. Because of the liquidity, the market typically has excellent structure. What is structure, you might ask? It’s the areas of support and resistance that the market creates and reveals itself on the chart. When a market is actively traded like the S&Ps, it is usually well-behaved and … [Read more...]
What’s the Right Trade?
What's the Right Trade? What's the Right Trade? is a new offering at TradingPsychologyEdge.com. We take a close look at a chart in the video below and ask you, "What's the right trade?" Is it to go long, to sell short, or stand aside? Check out the video below and give your opinion about what you see and what to do in this trading situation in the comments section below. … [Read more...]
A Lesson in Day Trading Stocks: VRX
Yesterday, some traders were bemoaning the swift move down in VRX, an NYSE Pharmaceutical stock. Apparently, they were long as the stock fell throughout the day—an almost 15% loss from Wednesday’s close. It offers a good lesson in day trading stocks. Day Trading Stocks: Comparative Strength & Weakness When trading stocks, we always want to assess a stock’s relative … [Read more...]
Point & Figure Charting in Crude Oil
Point & Figure charts are highly useful to traders. Point & Figure charting tells us is the strength of support and resistance and also the potential extent of a move – highly valuable information. Point & Figure Resistance in Crude Oil The spring rally in Crude Oil died out by May. The market went sideways for two months during May and June, showing significant … [Read more...]
Market Action Today
Today's Market Action--Surprising? The market action this morning may have surprised some traders. We saw the market start to rally strongly after putting in the January 6th low. I had emails from more than one trader saying that this rally looks very similar to the push off the mid-December swing low. They argued for new highs. I have been doubtful about that. A few things … [Read more...]
