Many believe that a well-defined, simple, and robust trading strategy can help a trader acquire gains that outperform the market or purchase undervalued stocks in hopes of outsized returns upon rebound, but is this the case? Students of the Efficient Market Hypothesis (EMH) would argue that fundamental and technical analysis are pointless approaches to the market...
Just passing this cool info written by a guy called Ben Carlson. - Ben discusses the differences between probability and certainty: "There are two arguments I see on a regular basis that show up as a result of data overload: …because that’s never happened before. …because that’s what’s always happened before. -The problem with this line of thinking is that...
All index traders trade it... But do we know anything about The Dow Jones? I'm going to break down what it is, some interesting facts about the Index and what companies makes up the index. Save it because it's all you need for the Dow Jones. WHAT IS THE DOW JONES? The Dow Jones 30, or DJIA or "The Dow" is a stock market index that reflects the performance...
A very brief look at 5 of the most significant market crashes to date, using the Dow Jones Index. Content taken from various online sources. Great Crash 1929 Many factors likely contributed to the collapse of the stock market. Among the more prominent causes were the period of rampant speculation (those who had bought stocks on margin not only lost the value...
Throughout the history of the chart from 1915 to 2020, we see two similar situations as now on the chart: 1) 1930 (the beginning of the global economic crisis called the Great Depression). 2) 1966-1970 (Stagflation in the USA from the late 60s to the beginning of the 70s which grew into the oil crisis of 1973). Dow Jones Industrial Average. Which reflects the...
In this post, I'll be referring to the historical chart of the Dow Jones Industrial Average (DJI) in order to explain my perspective on risks associated with the market, and how to respond to current market conditions as a trader and investor. This is not financial advice. This is for educational purposes only . In my previous educational post, I discussed...
Here I put up a series of deflactors on the Nasdaq 100 Total Return... I like to use Total Return Indexes becuase they acurately reflect the actual growth of the invested money, rather than simple price indexes... I picked the Nasdaq because as you may have noticed from previous posts the Nasdaq is the absolute winner in terms of performance in the last 15...
My definition of Correction: During any rally whether it is Bullish or Bearish, there are times when traders and investors start to reevaluate their positions, take some profits or accept their loss and make changes in their portfolios composition. Usually it happens a couple of time during any rally regardless of its nature(Bullish/Bearish). My definition of...
this example shows the circuit breaker rules of US Stock Market from the current price.
This is an analyzation Yale Hirsch's book "Don't Sell Stocks on Monday" in which he defines stock markets high/low months over the past 100 years. High Months: January, March, April, July, November December Low Months: February, May, June, August, September, October Green Lines mark Positive Correlation with High Months Red Lines mark Positive Correlation with...
In this chart I show a tight summary of what's been happening with the DJI (Wall Street). I apply the theory of curves. It shows weakening momentum in its north side drive. I refer to just a handful of fundamental issues for both the bulls and the bears . In recent times various forms of 'stimulus' has kept this market afloat. Then in the last 2 weeks, hope...
I just wanted to share some tricks I learned using some basic TA tools in trading view. I marked up the NASDAQ with some examples. Please note that hind sight is 20/20 and using these tools in real time is much harder. First, I think the Regression Trend tool is underutilized by traders. It is a very powerful tool for automatically generating trading channels....
It's a channel. Nobody really knows for sure why channels develop. There are loads of theories. I'm not interested. A channel is usually discovered late, obviously because the channel is evolving and then you see it. Unbelievable as it is, it is there. So what do you do. Well, I don't give advice. What I do is understand that there may be limited opportunity...
In this analysis I'll be shedding light on my own theory on: - How President Trump's Covid-19 Positive news may impact the market - Similarities and differences in historic cases - Why Trump possibly announced his testing positive so quickly Trump's Testing Positive - Trump testing positive for Covid-19, 4 weeks before the presidential elections, is not good...
I think this chart will be of interest, in overlooking the big picture. I say what I see and it is largely about a health timebomb approaching. So I deal with some technical and hidden fundamental issues. Always say what you see on the charts! Remember TA is about sentiment - until reality catches up. 1 - A popped bubble. 2 - A reinflated bubble. 3 - A...
Well, get your popcorn ready!! US Tech 100 is in a precarious position. This is another thing that rules the world! Price ducked below 11000 - which is considered important. Will it stay below? How would I know? 🤷♂️🤦♂️ At time of posting price is a 10920-ish. Does this mean the backs of the USTECH and NASDAQ are broken? Of course not. Expect permabulls to do...
W.D. Gann: "If we wish to avert failure in speculation we must deal with causes. Everything in existence is based on exact proportion and perfect relationship. There is no chance in nature, because mathematical principles of the highest order lie at the foundation of all things. Faraday said: `There is nothing in the Universe but mathematical points of...
Sometimes as traders we tend to focus on every little move and get overwhelmed with price action. I personally believe making your charts simple is the key to success! 1. Trend Trading 2. Risk Management The 2 things that matter the most by far when it comes to trading. You as a trader need to step away from focusing on every price action move in the markets,...