iamroot

iamroot Updated 

This is one of my favorite trades to make because of the outsized risk reward ratio that it can offer. We're talking 10:1 or better some days. We are going to look at an example of an opening range trade in the S&P 500 E-mini this past Friday, October 29, 2021. What is the opening range? In the days of screen trading, the opening range can be considered the first...

iamroot

Here's something I'm keeping an eye on right now. I'm not normally a swing trader, but since I do hold some stocks long term, I am always looking out for long term danger to the equity markets. I trade the ES futures intraday, on a 30 minute chart. Every Sunday however, I print out weekly candle charts for all the futures markets that I like to follow. I take my...

iamroot Updated 

Here we see an excellent example of how divergence on the volume weighted directional bias (VWDB) indicator warns of a shift in market direction. If you're not familiar with natural gas futures, this market has been making some BIG moves lately. Here we are looking at the 30 MIN chart on the Henry hub natural gas futures front-month contract. Notice on the chart...

iamroot

I have on the wall next to my trading desk a list of 10 rules which I remind myself of every day. These are rules that I've come up with as a result of mistakes that I've made in the past. New traders often have misconceptions about what good trading looks like, or how a successful trader behaves. The barriers to getting into trading today are low, but the...

iamroot

...but the pandemic offered pretext to take dramatic action when it was already needed. When J. Powell started announcing rate cuts after the late 2019 'taper tantrum', nobody was surprised, either by the cuts or their size. These were modest cuts announced in successive FOMC releases. All seemed normal and the market appeared to take a breather on slightly lower...

iamroot

Sometimes you need to zoom your chart out for perspective. This run-up in yields has been fast, but looking at the 40+ year trend of US10Y, it appears merely corrective after bonds were panic bid in March 2020. Higher yields from here will weigh heavily on over-valued and over-indebted companies. Looking at you, tech stocks. Some attrition in this area over...

iamroot

Word on the street is that real rates are surging. SURGING, I tell you!! The financial press gets caught up in the moment, swept along in the excitement, elation, and fear of any directional market move. During such times, it is especially valuable to step back, look at the bigger picture, and ascertain if the long-term prevailing trend is at risk of a breakout...

iamroot

Why y'all trippin?

iamroot Updated 

Market curve turned decidedly parabolic after FED interest rate peak around 1981. The parabolic growth of the S&P500 Index and broader stock market over the past 28 years appears to correlate with progressively declining interest rates. Every major reversal (rate increase) in the rate decline has been followed by a stall or decline in the value of $SPX. The...

iamroot

"Idea description is required" ...but TradingView isn't the boss of me.

iamroot

The coming few weeks should confirm. Use caution. This market is very manic. Soros quote regarding irrationality of markets applies.

iamroot Updated 

Everything is consolidating tighter and tighter, lots of tension building. It's looking more and more likely to breakout between now and Monday. I'd give the chances of that breakout being to the upside at least 3:1 against a downside breakout. When Bitcoin pops the 'big green boner' again there's going to be an epic show of short liquidations. ...

iamroot Updated 

All your TA looks like a bag o' slapped ass, but you made a couple lucky short calls and think you're clever. Lemme show you what BTCUSD is going to do to your short position in the coming week.....

iamroot

I'm not predicting shit, I'm just right. Suck it.