For a review, we use the exponential moving averages in the 10, 18, and 50 day MVA and the simple on the 200 day MVA. The reason we do that is the accuracy. The exponential averages tend to work best on the shorter term averages. We use the 200 day simple MVA because institutions tend […]
Yes. Actually, sometimes we do one, sometimes the other, and other times both. On breakout plays we like to set a buy stop at our buy point and let the stock move up through resistance and trigger the buy. Many times we will do this on part of a position, particularly if we think the […]
Many times when a stock is making the move we want early in the session, you are right; if we wait, it may be up $4 by the time the volume hits the target level. What we do is look at where it is now and if there are block trades taking place. If volume […]
That was a line taken from Wednesday’s market summary. To be more precise, it should have read ‘negative views by options players as a whole are a positive for the market.’ The reason is that options players as a whole are speculators. In other words, they buy out of the money near term (current month) […]
Most of the action takes place in the first and last hours. Why? Usually the early hour is dominated by retail investors that put in orders the night before, and to a much greater extent institutions with buy orders that are either buying equities or selling them based on fair value in the futures. The […]
One of the age old dilemmas. You see the market open and stocks are running early. Do you get in right away and risk a stock tanking on you or do you wait and potentially miss a good move? Basically, if an index jumps over resistance, tests it and then moves back up, we will […]
The VIX and VXN are measures of volatility of the market by looking at hypothetical at the money options on the S&P 100 and Nasdaq 100, respectively. Options have as one of their pricing components volatility. There are a few ways to calculate it, but in short it is nothing more than a measure of […]
There are a few places to check it out, but CNNFN is not bad. Try this link:Before hours: http://money.cnn.com/markets/morning_call/After hours: http://money.cnn.com/markets/afterhours/
With gaps higher it is a tough one. You hate to jump in on the gap up, but if you cannot watch the moves, how do you determine the best time to get in? When using a real time service you can look before the open and see where Nasdaq and some other stocks are […]
One of the problems with mortgage rates not falling (the yield curve too steep) is that the long bond was not falling along with the 10 year treasury. By eliminating the 30 year (the U.S. has done this two other times) as a form of treasury funding, the long end represented by the 30 year […]
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