The Trend

What Every Smart Investor Should Know about Market Pullbacks

Early October 2018 was quite painful for the average investor.

The major indices fell out of the sky.  The tech-heavy NASDAQ fell from 8,100 to 7,300. The S&P 500 dropped from 2,925 to 2,725.

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Secrets of the Doji Master: How Candles Can Pinpoint Opportunity

Way back in the 1700s, Munehia Homma first created candlestick charts for rice trade.

Oftentimes, he would record the opening day’s price of rice, the low and the close.

 

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Trading the J-Hook Continuation Pattern

Technical analysts attempt to predict direction by studying past price action and charts. And understandably, there are critics. In fact, some see it a pseudo-nonsense. 

Forbes for example says it’s fundamentally flawed.

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The Two-Step Process to Uncovering Value after a Pullback

“Why would I want to touch a stock that just plummeted?”

My answer, “Why not?”

What many traders don’t understand is that many pullbacks create opportunities, especially when it happens to a well-known stock. 

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How to Use the Chaikin Oscillator to Analyze Markets

Any time you use technical analysis, confirmation is essential.

If you’re not willing to confirm, you’re doing yourself a great disservice. In fact, at no time will I ever just use Bollinger Bands (2,20), MACD, relative strength, or Williams’ R% alone.

That’s an amateur, foolish move.

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Tesla Erupts in Chaos, but There May Be Good News

Tesla Inc. has been a slow-motion train wreck.

All thanks to un-CEO behavior from Elon Musk.

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How to Trade Parabolic Stop and Reverse (SAR)

The Parabolic Stop and Reverse (SAR), commonly known as Parabolic SAR is a trend following indicator that highlights current price direction.

It also provides entry and exit signals as well with dotted lines.

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The Exact Time to Jump out of Any Trade

It’s not about having the perfect strategy.

It’s about the rule you abide by with each trade. 

One of the biggest issues facing all walks of traders is a severe lack of discipline and structure in stock buying habits. Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others risk far too much.

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Why it Pays to Use these 4 Key Technical Tools

Sometimes, simplicity is the best way to spot opportunity.

In early August 2018, shares of Weight Watchers (WTW) plunged $12 unexpectedly on an earnings overreaction. But the news really wasn’t worthy of such a gap lower.

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The Most Essential Part of any Trade

Any one can trade a stock.

But it takes a disciplined person to trade that stock well.

One of the biggest issues facing all walks of traders is a severe lack of discipline and structure in stock buying habits. Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others risk far too much.

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How to Properly Catch a Falling Knife

Traders are often told to buy excessive fear.

Warren Buffett even advises to buy when others are fearful.

It’s part of the reason some bought Twitter (TWTR) and Facebook (FB) after both witnessed ugly downturns on earnings fiascos.

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Three of the Oddest Candlesticks to Trade

When traders first hear that candlesticks can help predict stock direction, most roll their eyes to the back of their head.  But truth be told, candlesticks are a great way to gain insight into the very market psychology that drives all stocks and indices.  

In fact, three of my favorites are doji crosses, the three black crows, and the hanging man. 

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Always Look for Agreement with These Technical Indicators

I love when traders tell me technical analysis doesn’t work. 

While they’re entitled to be wrong, the fact remains that technical analysis does work, sometimes by up to 80% of the time. Granted, there is no Holy Grail, but if we use the right indicators, we increase our odds of success. Especially if we apply those indicators to well known stocks that may only be down temporarily.

Let’s look at Raytheon (RTN) for example.

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Why Investors Are Sending Markets Higher, Especially Small-Caps

Six months ago, President Trump signed the Tax Cuts and Jobs Act.

Half a year into the cuts, the economy is on sound footing, despite fears of a trade war. Unemployment is at multi-decade lows. Even corporate stock buybacks are reaching record highs, sending markets to unbelievable heights.

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$90 Oil Prices: Why It Could Happen in 2018

For most of 2018, oil prices have churned higher.

Granted, prices took a short breather in early May through June 2018, but that proved to be short-lived on fears that supply won’t be able to offset issues.

In fact, since the middle of June 2018, oil ran from a los of $63.50 to $74 a barrel – its highest point in about four years thanks to OPEC’s underwhelming news of a smaller than expected increase in oil production.

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This Pattern Has Not Happened to Gold Since 2016

The last time this happened, gold sank from $1,306 to a low of about $1,125.

Nowadays, at the same price of $1,306, it’s happening yet again, and analysts are fearful it could pinpoint to further downside for the meal.

If you look closely at this chart, you’ll see what happened when the 50-day moving average crossed below the 200-day moving average in November 2016.  Nowadays, it’s happening again with a slight crossover today.

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Three Treacherous Technical Patterns on the Dow Jones

It is absolutely imperative that traders pay close attention to key technical patterns, especially when it could cost them thousands of dollars.

In June 2018, it was safe to say the market was in train wreck-mode.

In fact, on June 19, 2018, the Dow Jones fell more than 350 points on fears of trade war escalation with China. At the time, President Trump threatened to impose another $200 billion of tariffs on Chinese goods if Beijing follows through with its promise to retaliate against our first round of tariffs.

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