August 11, 2013

  “Trading is not an intellectual game. You can’t ‘out-think’ the market.”   –Linda Raschke   Shares remain in good shape. The advance is broad and leadership quite impressive. Strong volume between now and Labor Day cannot be expected. For this reason, there are certain setups that... [more]

August 1, 2013

  “Don’t be a hero. Don’t have an ego. Always question yourself and your ability. Don’t ever feel that you are very good. The second you do so, you are dead.”   –Paul Tudor Jones   There were more breakouts this week than any week in years, in our opinion. That this behavior occurs not at the end... [more]

July 14, 2013

“If you have a losing position that is making you uncomfortable, the solution is very simple: Get out, because you can always get back in. There is nothing better than a fresh start.”   –Paul Tudor Jones   The clue that the May-June decline in the averages was going to be temporary, and not lead to a bear market, was the performance... [more]

June 17, 2013

    “Be who you are and say what you feel because those who mind don’t matter and those who matter don’t mind.”   –Dr. Seuss   Monday’s session allowed the Nasdaq to confirm last Thursday as a swing low. This turns the trend from down (lower highs, lower lows) to neutral (higher low, lower... [more]

June 3, 2013

  “The most important rule of trading is to play great defense, not great offense.”   –Paul Tudor Jones, Market Wizard   The Nasdaq Composite is in a 3.2% reaction after peaking seven sessions ago. Shares are now getting in synch with reality following a four-week, low volatility grind higher that appeared as smooth as glass.   ... [more]

May 5, 2013

  “If a stock or the whole market cannot be advanced, the assumption is that it will decline — a market seldom stands still.” –Richard Wyckoff, 1910 It is easy to like a market in which the pullbacks last all of a single session. The most recent one, which occurred Wednesday after a disappointing ISM number, was followed Thursday by a 1.3%... [more]

April 8, 2013

“Those traders who have confidence in their own trades, who trust themselves to do what needs to be done without hesitation, are the ones who become successful.” –Mark Douglas Shares move through an extremely choppy market as players position themselves ahead of earnings season.   ... [more]

The Breakout

“The long run is a misleading guide to current affairs. In the long run we are all dead.”                 –John Maynard Keynes As if lifted from the pages of a textbook – the textbook – the Nasdaq and S&P 500 averages cleared the top of a five-month, cup-with-handle pattern last Thursday. Nasdaq volume, at 19% above average,... [more]

Shares Show Health

“There are old traders, and there are bold traders, but there are very few old, bold traders.” — Ed Seykota Shares continue to discount a positive economy in ’13 with attendant earnings growth. Another round of Federal Reserve accommodation is part of the story, but perhaps... [more]

Shares in Classic Action

“Knowledge = confidence = success.”— Steve Nison Shares remain in a classic basing process following the Q1 advance. This process, which has the averages forming textbook cup bases, has been seen too many times in the past to mention. Most often, it resolves itself with further upside, as price moves... [more]