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]

Shares Plod Higher

“Riches don’t respond to wishes. They respond only to definite plans, backed by definite desires, through constant persistence.” –Napoleon Hill Shares put in another constructive week amid Thursday’s increased volume and range expansion. The muted NYSE volume this month is not a concern since this is par for the course at this time of year. The... [more]

Summer slowness

“The fastest way to the bank is education.” — Steve Nison Shares put in a constructive week technically, with Tuesday’s higher volume rise the centerpiece of last week’s activity. Prices then spun their wheels on Wednesday, Thursday, and Friday, as range contracted and volume ebbed. The... [more]

Bias Still Up

“After a while, the [trade] size means nothing. If you complete 78% of your passes, it’d be nice if you’re in the NFL, but if you’re in college or high school or even elementary school, I’m sure the thrill is just as great.” –Paul Tudor Jones Friday’s 2% rise in the Nasdaq took price to a one-month... [more]

Averages Firm Up

“Lose your opinion – not your money” –Unknown Shares put in two major accumulations days at the end of last week. Of note was the volume, Friday’s range expansion, and Friday’s good close. In... [more]