A Trading Plan Is The Key To Successful Trading
Without a clear trading plan no one can make money consistently. A trading plan allows the trader to execute his/her trades in a consistent manner and without letting emotions get in the way. Clear entry points, stop-loss and profit targets are predefined by in the trading plan, allowing the trader to focus on execution […]
Burberry (BRBY – LSE) Eyeing Lower Levels
After announcing earnings yesterday, Burberry tumbled lower and today is regaining some footing. The theme among clothing retailers has been the same, be it Aeropostale (ARO), Ralph Lauren (RL) or Gap (GPS)…higher input costs are weighing on profit margins. The charts are broken for the medium term and there are various strategies to apply here. […]
Stocks In Europe Reverse Early Gains (Chart)
Check out the intraday reversal in the Euro Stoxx 50. We are short some Burberry after they announced earnings this morning. In the same space, Ralph Lauren (RL) yesterday took it on the chin after announcing 4th quarter numbers and revealing that higher input costs are crushing margins. We are short some far out […]
Update on Financial Stocks. Where Is The Bounce?
Last week I pondered whether the financial sector might be due for a bounce soon. Read here. Thus far the financial sector has not bounced since I wrote last week. As we are heading into a long weekend and the tape is choppy I wanted to give a quick update. I don't want to […]
Various Market Thoughts – Time To Shorten Trading Horizon
Despite a bounce in the major averages yesterday, the market remains in no-man's land and is churning away. Given all the headwinds I discussed here tirelessly I think the direction of stock prices over the next two months is flat to down. As such we are increasing our focus on shorter-term trading in Bucket 1 […]
USO Setup To Bounce Higher
The United States Oil Fund etf (USO) found good support at the 200 day moving average (red line) reinforced by several bullish candles and now sits at minor resistance at $40. A push above that would lead us to initiate a Bucket 2 trade with target near the 50 dma (yellow line).
Oil Services (OIH) Setup For More Weakness
I will elaborate more on this later today. But for now please note he weak chart patterns in Oil Services (OIH) etf. A daily break below $144.50 could quickly lead to a price target near $137, which is at the 200 dma (red line)
Semiconductors (SMH) Reaching Another Cliff
The semiconductors staged a nice rally over the past few weeks and one that negated out previously bearish pattern discussed here: http://steadytrader.wpengine.com/semiconductors-are-messing-with-a-bearish-pattern/ To be fair however, the Philadelphia Semiconductor Index (SOX) still remains lagging the S&P 500 and is now falling out of a rising bear flag: The SMH now again looks precarious as it's sliding […]
Euro Stoxx 50 Chart In Danger
We pointed this out earlier this week but here it is again. Note the red uptrend line in place since May 2010…it is not in danger of being breached. Throw in seasonal weakness tendencies and a miriad of other headwinds and this doesn't bode well for risk.
Tuesday Mid-Day Market Thoughts
It's quite simple, markets are confused and it's showing in the currently very choppy trading action. We are finding ourselves doing less and less as choppy indecisive markets lead to lower account sizes. Sector-wise the only one with any bids is Energy today while Financials are getting pounded again. Funny-money stock Netflix (NFLX) is pushing […]