Category: Stock Trading Strategy

Whenever I receive a question I think will be beneficial to other traders who may be wondering the same thing, I share the question and our reply here on the trading blog. In this post, a subscriber is seeking advice on how to size positions within his portfolio, and also wondering about the importance of share price…

Since bouncing off their April 11 lows, both the NASDAQ and S&P 500 have scored six straight days of gains. To the casual observer lacking any knowledge of technical analysis, it may appear as though the market pullback of the past month is over and stocks are once again working their way back to new […]

With bearish momentum increasing and stocks testing key support levels in recent days, one of the biggest questions on your mind may be whether or not recent price action is merely a normal bull market correction or the very early stages of a new bear market. If I had the psychic ability to know these things […]

In case you’re too young to know, the title of this blog post is the tagline from the (crappy) sequel to the terrifying 1975 horror film, Jaws (which is definitely not crappy). But it also reminds me very much of last week’s price action in the broad market. Here’s why… After several days of encouraging price […]

Stocks kicked off the second quarter of 2014 with a bang yesterday (and that’s no joke). Although the stock market was in pullback mode throughout most of March, the price and volume patterns of the past two days indicate last month’s correction may soon become old news. If that’s the case and stocks soon resume […]

As recently discussed in my March 26 blog post, banks, mutual funds, hedge funds, and other institutional funds have been rotating out of the NASDAQ and into the S&P 500 and Dow Jones in recent weeks. Although this has been leading to moderately bullish price action in select blue-chip stocks such as $IBM, more explosive, […]

With leading stocks getting punched in the face over the past week (especially the past two days), there isn’t much to get excited about on the long side of the stock market right now, despite oversold market conditions. During each market pullback in 2013, money rotated out of extended stocks and into those breaking out […]

At the close of trading on March 21, our rule-based market timing model shifted from “neutral” to “sell” mode, after previously slipping from “buy” to “neutral” mode on March 12. When the timing system first enters into a new “sell” mode, it primarily acts as a “no nonsense,” objective way to keep us out of […]

If you’re like most stock traders, you have a personal preference towards trading in a particular time frame, such as daytrading, swing trading, or position trading (click here for a clear comparison of these styles). However, do you know you can substantially increase your trading profits by combining trades of two different time frames…within the same […]