Price chart patterns are a mainstay for technical traders looking to forecast future moves. These distinct formations on a stock chart shows signs of future price movements. Knowing a few basic formations will help you identify opportunities for profit and the…
Risk control is critical to any investment plan. Money management discipline is more difficult to employ successfully in volatile market conditions, even though it is often said that volatility equals opportunity. The truth is, execution of buys or sells under…
Market breadth can provide important clues about what and importantly who is driving the market. A longstanding measure to evaluate the breadth of the market was created by Richard Arms going on 50 years ago. TRIN is short for TRading…
Controlling risk is the number one objective for investors. A disciplined trading plan focusing on quantifying loss exposure separates gamblers from those playing the long game. Losses are a reality in trading, and only the amount relative to winners can be managed…
A stock is only worth what someone is willing to pay. Prices can always get cheaper, even for free falling stocks that you think will have value at some point. Let’s take a look at Twitter. Their stock has fallen from it $75 peak…
A seesaw visually represents the inverse relationship between interest rates and price. As interest rates rise, fixed income prices (e.g. bonds and notes) fall, and as fixed income prices rise interest rates fall. The Federal Reserve only has direct control over short…
Futures or commodities contracts offer investors and speculators a direct, highly leveraged vehicle to participate in the resource building blocks of the economy. Not long ago, limited market hours were less efficient with major price gaps up and down when…
A market assumption that makes life easier is to believe that liquid markets are fairly priced, that is, the wizards at Goldman Sachs would buy anything undervalued and sell anything overvalued to put things back in line. There may have been…
