Swinging Market
The difficulty of trading a highly volatile and low volume move is demonstrated by last two days action. Market is swinging from one extreme to another extreme. 2% days or days with 300 plus 4% bullish or bearish breakouts are now a days a weekly phenomenon.
After day before yesterdays weakness a retest of high was what I was expecting , but not so fast. The market opened in green and stayed that way and accelerated post 2 p.m. on news of Fed Chairman's letter. Technology was leading the way. INTC the tech bellwether had 4% plus breakout yesterday. Expecting this strength to not carry through much and we are likely to have a pullback from this level.
Market is in confirmed correction phase as per Market Monitor. The entire idea behind Market Monitor is to avoid risky , volatile period and trade during safe, less volatile periods. All such periods are ultimately followed by less volatile more predictable periods. More than that the profit one can make during the safe period can compensate for staying out during such period.
After day before yesterdays weakness a retest of high was what I was expecting , but not so fast. The market opened in green and stayed that way and accelerated post 2 p.m. on news of Fed Chairman's letter. Technology was leading the way. INTC the tech bellwether had 4% plus breakout yesterday. Expecting this strength to not carry through much and we are likely to have a pullback from this level.
Market is in confirmed correction phase as per Market Monitor. The entire idea behind Market Monitor is to avoid risky , volatile period and trade during safe, less volatile periods. All such periods are ultimately followed by less volatile more predictable periods. More than that the profit one can make during the safe period can compensate for staying out during such period.
Posts
10 comments:
amen
I should have heeded your advice. I've tried to jump in twice since the decline began and I've been burned both times. It pays to be patient.
Is there a section that explains what "Focus stocks" represent and when and how to play them?
"Short covering rally" time.
Too many Bear here thinking market drops like a rock.
When too many of the majority investors are one sided....market move in opposite direction.
Pradeep,
I noticed you took down your "earnings tracker". Are you still using it? and will you post it again?
thx
Jack
You can access it here
http://spreadsheets.google.com/pub?key=pyB0fv3thl6T1L5yG9PPdTQ
but because it has not been updated since August 1 st week, it is not much of use.
In last two days itself there were 2 stocks with 100% plus earnings, which were up 15% plus post earnings.In last one week or so most of the Chinese stocks which had wild moves were also earnings related breakouts.
The spreadsheet was at the request of some readers who wanted to track earnings, obviously they lost interest, I do my own tracking daily. Those who seriously want to trade earnings should do their own tracking.
Paradeep,
When trying to access the spreadsheet, I get the message:
"We're sorry. This spreadsheet isn't published." Any Suggestions??
Thanks for ALL of your help, and glad to have you back.
http://tinyurl.com/24qkxq
try this
Thanks for the link again.
I know in some of your past posts on earnings you advised not to use scans...IBD has a custom wizard application that you can plug in the criteria.
In your op: Would something like this be worthwhile to use or is it still better to track earnings by hand?
Thx,
Jack
I am not sure what is this custom wizard application, is it for Daily Graphs.
Any earnings database can be used as long as the earnings are updated daily, many sites update data on weekly frequency.
Post a Comment