In this video I discuss the Apple Gap and Fade play. If you are a day trader this is basically the things I watch for. The gap and fade plays can also be known as the Green to Red play, meaning a stock went green and when it turns red its headed towards the bottom. Personally I like to watch the price action, volume levels, and support and resistance key points to know the entries. Remember this is strictly a day trade play and would not be held overnight.
Lets Talk Stocks
November 12th, 2012
November 12th, 2012
Here are some things I am currently watching. Primarily the TLT looks healthy for bonds. I also been talking about ALXN, MA, and ROK in my other daily posts. EEM still appears to be consolidating so just keep an eye on it. Some charts are forming but still looks like a cash market until things re-balance. Do not be in a hurry to jump into stocks. Wait for your opportunities then pounce hard when the time is right!
November 9th, 2012
Many of the market indexes are currently hitting critical support levels. If these levels break, we could see lower prices. The recent decline after the presidential election is finally being digested. It was the worst decline after an election in history. Since many stocks are at critical support points, I am currently 100% in cash.
The DJ-30 finished with a doji at 12,815 meaning indecisiveness, but hit support at the critical 12,750. Next week should set the trend more on the direction.
November 8th, 2012
Many stocks today continued on their downward trends. Even the leaders were struggling to stay up. Remember that market corrections are great. It creates new chart patterns and sets up great opportunities. Just be patient on stocks and let the chart setup. Sometimes its best to set aside, stay in cash, and go play some tennis, golf, or snow mobiling. Here are some charts that caught my eye.
The Dow 30 pushed against the 200 day moving average and dropped down heavy another -121 points. It almost seemed as if the market needed an excuse to sell off after the presidential election.
S&P500 (SPX) broke the 200 day today as well.
November 6th, 2012
Let us take a brief look at a few recent popular IPO's. One thing I want you to remember and understand is that most people like to jump into IPO's in the hype because they watch the news, get influenced by the noise, or use the product. Remember that you are trading stock here with the professionals. This is not a kids game anymore!
Most IPO's sometimes have a dumping period where people unload and cash in on shares who purchased it on the secondary market (before the IPO). Sometimes they can dump them a few months in, sometimes immediately, so read the reports.
However, don't jump in just because the stock "sounds cool." I have seen some of my friends jump into Facebook stock for example and that stock is just toast. Let the charts setup and be patient. Wait for them to show you and prove to you that they are good stocks to own! Forget the noise, turn off the TV, do your own homework, and make your own decisions.
November 5th, 2012
After the bell, LinkedIn and Starbucks posted earnings that beat the street and were up about 7% after hours.
November 5th, 2012
Monday was a light session as most traders stayed on the sidelines waiting for the Presidential election to take place this week. Stocks had minor gains later in the day. ISM Non-Manufacturing report came in light - practically neutral, but still in expansion which did not sway the market.
The major indexes continue to trade in a fairly tight trading range.
October 31st, 2012
After a few days of down-time from Hurricane Sandy, stocks opened Wednesday with still mixed feelings. Markets opened at highs and sold off by noon or later.
Remember that Bull Markets typically start low at the start of the day and end high towards the end of the day. Bear markets typically start high and end low towards the end of the day. Study
October 30th, 2012
Take a look at some newspaper and publication stocks over the last few years. Notice that most of them have totally have been going downhill since about 2005. Content these days is starting to become more available through the Internet people are shifting their mindset and their paradigm. These newspaper and publication stocks, even though they are still popular as far as reader base is concerned - the revenue growth potential is just not there anymore.
October 29th, 2012
On one note it is sad to say that hurricane Sandy closed the financial markets Monday and Tuesday, however it brings up an important point.
Just because the markets are closed, does not mean you can not study! If you are not in the hurricane area, there is always time to pick up a book, study, or read insight from some of the greats. Pick up a few good books and test out your strategies or review your past trades for the year to evaluate how you are doing.
There is always more to learn and things to get better at! Study!