A stock’s float refers to a company’s shares that are freely bought and sold without restrictions in the public, i.e., the number of shares held by the public and available for trading. As the largest proportion of stocks trading on the exchanges, the float consists of regular shares that many of us will hear or […]
It is harder to trade stocks with below average volume and we like to keep those to a minimum because of the lower liquidity. The primary consideration on liquidity is the ability to get out of a position if things start to fall. If volume is less than 100,000 shares on a 50 day average, […]
It is still profitable, but the relative adantage over buying in a non-tax exempt account has diminished. The new tax rules create an advantage, but then take away one of the best advantages of capturing dividends in a taxable account. The tax rate has been reduced from the taxpayer’s bracket to 15%. Depending upon your […]
What moving averages fund managers use can change over time and from stock to stock. As we like to move with the big money and anticipate its moves as well, we observe when they move into stocks and adapt accordingly. You are on the right track in wanting to know what the big money is […]
Accumulation is based on a pretty straightforward premise. During a stock’s life it will rally and rest, rally and rest. Sometimes it rallies a long time with just a few short rests, and then slips into a deeper sleep (some would say coma). You see this all the time: a stock breaks out from one […]
Market is a generic term we use to describe the major indexes in general, and more specifically the major investors that move the market. We use the term to describe the overall movement of the averages and the big money that is responsible for the major moves. It is not always an accurate characterization with […]
You can find the open interest of puts and calls on the QQQ, OEX, and any stock or other index at several places on the web. One is www.pcquote.com. You can get a quote on options and it will show you the open interst as well for each strike and for each month. When looking […]
The SOX is made up of 16 semiconductor stocks representing all facets of the semiconductor sector (e.g., chip equipment, memory chips). Current stocks included in the index are a ‘whose who’ of the semiconductor world: KLACMXIMNSMNVLSLLTCXLNXBRCMINTCTXNSTMALTRTERAMATAMDMOTMUTSMLSI Even though it is an index, it is a narrow index made up of the largest semiconductor stocks. Thus […]
We like to play options on the SOX. It is volatile and the options are pretty expensive. There is the SMH (Semiconductor Holders Trust) that covers the semiconductors and is traded on the AMEX much like the QQQ. You can buy the shares and/or options on them.
The money flow indicator is a measurement of the net positive or negative level of money moving into or out of a stock, calculated using various proprietary methods of measuring the relationships between price and volume. Basically it is a way of determining whether there is, overall, money going into or out of a stock. […]
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