The Trend

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.

Read More

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...

Read More

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...

Read More

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:

Read More

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...

Read More

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...


Read More

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...

Read More

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...

Read More

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...

Read More

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:

Read More

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...

Read More

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:

Read More

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.

Read More

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.

Read More

Candlestick Patterns: The Secret to Wealth from a Rice Trader

Munehia Homma was never your typical trader.

Few have been as influential or accurate.

But what he added to the art of technical analysis would change the way we look at charts altogether. What’s most interesting is that...

Read More

The Red Dog Reversal

If I could teach every new trader just one technical analysis strategy, it would be the Red Dog Reversal. It is my preferred method for identifying countertrend moves in oversold or overbought stocks, indexes, and ETFs.

Many traders, particularly beginners, are way too aggressive in calling tops and bottoms. The problem is they typically don’t have any real rationale. They’re basically just saying “I’ve got a feeling!” They might as well be at a roulette wheel in Las Vegas.

Read More

High Close Doji Trigger: A Powerful Trading Combination using Pivot Points and Candle Chart Patterns

There are many trading methods one can employ to actively trade, including various mechanical trading systems and manual trading tactics. The constant changing of market conditions can require system traders to adapt and update the parameters for the trading decisions. I often prefer the hands on visual approach which is more of a manual method while employing mechanical risk management techniques. The visual approach is aided by the use of candle charts. The drawback is that one must have a basic understanding of this form of charting to begin with. The upside is once you learn the basics, a new meaning of how markets act may be revealed to you.

Read More