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"Bull markets are born on pessimism, grow on skepticism,

mature on optimism and die on euphoria."

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The same cycle happens on a smaller scale too.

Within weeks and months.

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Swing trading is about buying pessimism and selling euphoria.

As often as possible.

3 Basic option strategies

Stock options are financial derivatives and those are usually seen as complex and very risky modern day invention. We’ve all heard Warren Buffet calling derivatives the financial weapons of mass [...]

November 24th, 2017|

Useful Market Indicators

Here's a brief update on the charts I use to gauge overall market conditions. SPX Breadth McClellan Summation Intermarket relationship - High Yield Bonds Yield Curve - Particularly useful for [...]

February 17th, 2017|

Market loves to crash in October

Largest ever 1 day percentage loss for the Dow Jones Industrial Average was October 19th 1987. The Black Monday  when Dow Jones lost 22.61%. 2nd worst also happened in October, the 28th [...]

October 3rd, 2016|

The Anatomy of a Winning Stock

One thing that I do every few days and that has improved my trading tremendously is looking at the best performing stocks and studying the conditions that had led to the [...]

September 15th, 2016|

Brexit Trade

Here's what I wrote in a newsletter yesterday: "Market is pricing in UK will stay in EU which produces a tail risk of polls being wrong. Also a risk of [...]

June 24th, 2016|

10EMA Pullback Setup

New Relic (NEWR): Look at that revenue growth. I just exited the trade but will for sure keep watching the stock. But there's another thing I wanted to show. Very clean pullback [...]

June 6th, 2016|

Post Earnings Drift

There are several documented market anomalies (and much more undocumented ones!). One that is widely recognized is the post–earnings-announcement drift, or PEAD. "PEAD is the tendency for a stock’s cumulative abnormal [...]

May 25th, 2016|

Amazon (AMZN) Channels

Amazon stock price was below $300 at the start of last year. It is currently at $700. The stock rallied more than 50% from the low made in February this [...]

May 18th, 2016|

FCX inverse H&S?

No pattern yet but something to keep an eye on. Let's start with the big picture. Weekly Chart 2 key takeaways from the 10-year weekly chart (logarithmic scale): The stock [...]

May 11th, 2016|

Favorite indicators pointing in opposite directions

On the SPX Chartbook page I keep and update daily a dozen charts that I find helpful for gauging broad market. Among my few favorite indicators are Put/Call 5 day average and [...]

May 11th, 2016|

3 Ways to Lose Money in the Market

This study suggests more than 90% of day traders lose money. I haven't done any surveys but from my personal experience with day trading this is about right and I've [...]

May 2nd, 2016|

AAPL COVER SIGNAL

Apple missed on earnings and dropped 6.26% yesterday to close at $97.82. It was (and still is) a universally loved stock. Last 2 analyst rating before the earnings report had [...]

April 28th, 2016|