Dow: -60 3rd day in a row down and touching the lower level of the Donchian channel. We are still in a trading range and are waiting to see what happens.
S&P 500: -60 Showing very similar action to the Dow. Once again in a trading range. Continue reading "1PM Recap"
If you follow headline news, then we don’t have to tell you about the kind of hit that the recent job report had on the major markets this week. OUCH. Just today the DJI fell 105 points, the S&P 500 lost 10 points, and the Nasdaq fell 21 points. The DOW alone shed over 400 points since Wednesday!
The increase in unemployment has caused major concern for experts, as well as all of us regular ol’ citizens of the USA. The recent job report was a definite letdown, especially for economists who were predicting a rate of improvement from 9% to 8.9%. Yet here we are with an unemployment rate of 9.1%.
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Be sure to Joins Susan, live at 1PM (ET) for your live update on the markets!
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The Trader's Toolbox posts are just another free resource from MarketClub.
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"Markets which have been in a persistent downtrend often exhibit a common pattern as the end of the decline is approached. The pattern is to post a sharp rally followed by one final decline to new lows.
Let's use this example of sharp, past rallies that were formed in both pork bellies and gold. Following the rallies, both markets plummeted to new lows. However, once new lows were made, the declines stalled. The failure to sustain the break on the move to new lows indicated the selling was effectively exhausted and potential bottoms had formed. A similar pattern marked the low in soybeans prior to the 1983 bull market..."
Revisit the Trader's Toolbox Post: "Bottoming Behavior" here.
Good afternoon, Susan Jackson filling in for Adam for today's afternoon update while he is out of town attending his daughter's wedding. We, here at MarketClub, want to send our congratulations to the happy couple.
Let's jump into the markets... Continue reading "Market Update for 6/2/11"
Our friend Scott Andrews, a West Point graduate and former CEO of a public company, is now Founder and President of MasterTheGap.com. Today he is going to share an interesting perspective in this article on using historical probabilities. For a limited time to Traders Blog readers, Scott is offering a complimentary historical research study on opening gaps in the S&P 500. If you enjoy this article, you may wish to download his complimentary SPY Gap Study HERE.
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Maybe you shouldn’t try to kiss all the pretty girls?
In the timeless words of Sir Winston Churchill, “Those who fail to learn from history are doomed to repeat it."
Though Churchill was not speaking of the markets, the concept is certainly applicable. In fact, the easiest way to make money trading the markets, is to avoid those setups that have been unprofitable historically.
Many folks obsess over trying to trade every winning setup. I do not. I am a gap fader. When the historical probabilities are favorable, I will short ‘up’ gaps and buy ‘down’ gaps. Since more than 70% of all opening gaps have filled the same day historically in the U.S. indices, I do not need to catch every winner to be successful.
In fact, I’ve had my best success focusing on simply trying to avoid the majority of the losing setups. Let’s a take look a look at a real market example. Continue reading "Avoid Losing Setups"
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