The Trend

The Importance of the Money Flow Index (MFI)

When it comes to trading, one of the best ways to tell what’s happening is by paying attention to the flow of money in and out of a stock. 

Surely, none of us want to buy a stock if money is flowing out, right? 

Instead, we want to buy if we’re seeing money flow in, or short if we begin to see signs that money is about to start flowing out of a stock.

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OPEC: Why a Continued Oil Rally isn’t in the Cards

For the first time in eight years, OPEC agreed to cut oil output by November 2016.

Under the terms of the deal, OPEC said they would cut between 200,000 and 700,000 barrels a day from their current production of 33.2 million barrels.

In fact, it was the Saudis that threw up the white flag, softening its stance on output, as its own economy suffered under the weight of plummeting oil prices.  

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Why the Fed is in No Position to Raise Rates

There are renewed fears the Federal Reserve could move to raise interest rates at the December 2016 meeting.

It’s part of the reason that gold prices have slumped from $1,345 to $1,251 in recent weeks.

According to Fed Vice Chair, Stanley Fischer, the latest jobs report was “close” to ideal.

Unfortunately, what the Fed doesn’t understand is...

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Technical Analysis 101: The Bull v. Bear Flag Patterns

Trying to figure out why traders are selling or buying is tough enough. 

But once you begin to understand charting, you’re literally looking at a consolidated view of the very forces of supply and demand - the two key forces that drive...

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Web Based and DMA Trading Platforms

The retail trader is faced with a choice regarding trading platforms. There is the traditional web based trading platform which is basically nothing more than an order entry screen to a broker. Then there is the direct access platform that provides traders direct access into the marketplace. If you are a long term swing trader or a buy and hold investor type, the traditional web based trading platform should fit your needs. However, if you are an active trader...

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The Real Reasons Why the Fed Did Not Raise Rates

The U.S. economy is just not ready.

Despite three dissenting opinions for an interest rate hike this week, the Federal Reserve left interest rates unchanged at historic lows. 

In fact, the group noted, “The committee judges that the case for an increase in the federal funds rate has strengthened but decided, for the time being, to wait for further evidence of...

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Five Essential Stock Chart Patterns

Markets are driven by two of the most powerful emotions - fear and greed.

And because of that, we need to be mindful of where fear and greed are running amok whether it is in stocks, ETFs or indexes.  Having this knowledge can help us better exploit extreme moves:

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Three Ways to Trade Commodities

So, you want to invest in commodities?

Maybe you watched the price of natural gas skyrocket in February or watched the price of gold plunge and wondered why you weren’t trading the volatility in the space.

Maybe you didn’t know how...

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Double Tops and Bottoms: Technical Analysis 101

Remember, understand how the market moves… and you increase your odds of success.  In theory, markets are pushed higher and lower by fear and greed - two of the strongest psychological drivers of all assets.

The more fear there is in an asset, for example, the higher the chance...

 

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Why We Are Bearish on Oil through 2017

After a brief rally on hopes that OPEC would curb supply at its September 2016 meeting, oil prices have again come under considerable pressure.

The International Energy Agency (IEA) noted that its sees the oil glut lasting until late 2017, as output growth slows. In fact, according to the IEA, growth has now slowed considerably from 2.3 million barrels a day in the third quarter of 2015 to 1.4 million barrels a day for the second quarter of 2016.

Then the group warned...

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Key Suppliers of Apple Inc. (NASDAQ: AAPL)

To be more attentive to how workers - even those tangentially involved in the making of Apple products - are treated, Apple took steps toward greater transparency in terms of its supply partners in 2012. Taking a similar approach to other large-cap companies like Nike and HP, an annual list of Apple’s top two-hundred suppliers is now published along with audit results of working conditions and manufacturing impacts on the environment.

While those who are socially conscious approved the publishing of the list, investors and traders instantly dug through it to develop new, better ways to trade APPL shares. For example...

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Support and Resistance Points: Technical Analysis 101

Understand how the market moves… and you increase your odds of success.

In theory, markets are pushed higher and lower by fear and greed – two of the strongest psychological drivers of all assets.

The more fear there is in an asset, for example, the higher the chance the value of that asset will decline.  The more greed there is in an asset, the higher the chance the value of that asset will increase.

Or, many times you’ll hear technical analysts refer to...

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Two September Catalysts May Decide the Fate of Markets

You may have noticed that markets have become a bit more volatile than usual. Stocks aren’t moving as they should and that volume across the markets have been lower than usual. Fear has ticked higher for many traders, even as the major indices march to record highs.

There are two key catalysts that may be driving current market conditions:

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Short-Sellers: The Market to Watch

Less than a decade after the biggest mortgage lending crisis in U.S. history nearly decimated the economy, another debt market is showing some troubling similarities to the mortgage bubble...

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Three of the Most Powerful Technical Indicators

If you pull a rubber band too far, too tight, what happens?

It snaps back. 

The same thing happens with stocks. If a stock, index, or ETF moves too high or too low, it typically snaps back, just like a rubber band. 

And we can spot the stretched rubber band by watching three specific technical indicators:

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Why a Fed Hike is not likely…

Over the last week, fear and tension dominated the Street.

Many have speculated if the jobs data was good enough, the Fed could raise interest rates at the September 2016 meeting.

It doesn’t matter that the U.S. election is just months away.  It appears the Fed wants to hike.

But that may no longer be in the cards.

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Trade Stocks With Lightspeed at 4 A.M.

In recent years, technology trends have led to widespread changes in financial markets. The vast amount of trading volume across assets now takes place on electronic trading platforms and the markets are increasingly accessible nearly around the clock.

Last month, Nasdaq OMX Group announced plans to open its pre-market trading session at 4 a.m. Previously, pre-market trading on Nasdaq began at 7 a.m. Eastern time. The new trading hours were implemented on Nasdaq in March.

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