Author name: Steve Burns

A lot of traders get very confused when the market goes from fear and risk off to new all time highs in a matter of 10 trading days. Here are some causes and reasons for these types of strong movements that seem to come out of nowhere. When there is maximum fear about the Ukraine,

Guest Post by Christopher Ebert @OptionScientist I personally don’t believe in the “max. pain” theory of pinning, seeing it as an illusion instead. Here’s why:Except for a very few traders who are using ITM options as a means of entering or exiting a stock trade, everyone else has generally exited their ITM options prior to

 Friday bounces back above all key support levels. $QQQ 5 day ema, $SPY 50 day, $IWM 200 day, and $DIA over the 100 day. By the end of the day the support did hold. Buyers stepped in to buy even after all the geopolitical risk escalated on the Ukraine news about the destroying of a

                  The Ability To Focus And Make The Best Move When There Are No Good Moves Following the Trend by Andreas F. Clenow “The untrained mind will usually take the path of least resistance.” An Honest Stock Market Update Best Practices in Trading With Dr. Brett Steenbarger

Markets are just as much about price as they are about psychology, one must infuse both into a tasty cocktail to be successful. — TakingStock614 (@takingstock614) August 15, 2014 Any YouTube clip evidence of anything yet? — zerohedge (@zerohedge) August 15, 2014 Farley golden rule #1 (from 1998) : “Forget the news, remember the chart.

NEVER add to a losing trade, look to get out of it not to make it a bigger loss. Never allow a big winning trade to turn into a big losing trade. Trade price action using your trading plan, don’t try to trade the news, opinions, or your own fear or greed. If a gap

                YOUR EGO: It wants you to PROVE you are right, it wants you to trade big, the ego wants you to be confident in your ability to trade before you are competent in your trading through the right education and experience. YOUR FEARS: Fear makes you afraid

  If the stock market is in an up trend trade primarily on the long side and in a down trend short rallies primarily. The best way to lose money in the stock market is to fight the prevailing trend. Do not trade without a detailed trading plan covering entries, exits, position sizing, maximum positions

Rallying on Friday in spite of all the overwhelming bad news of bombing in Iraq and Putin threatening Ukraine is a positive signal for bulls. If that news can’t take the market down, what can? Last week all support levels held and prices bounced, this is what you would expect for the long term uptrend

CYNK market cap still $131 Million. Not bad for a company without employees that doesn't exist — zerohedge (@zerohedge) August 7, 2014 Hope you are in cash — Mr. Breakout (@sharptraders) August 8, 2014 Technical analysis to me is the study of price, if you don't believe in it is there some exchange you've found

  I am currently long $TNA from Thursday, $UDOW from Friday, and $SPY from Thursday. At this point in the market the risk/reward favors the longs. I am using end of day stop losses to filter out the intra-day noise and the increase in volatility both ways.  My position sizes are big enough that they

                          Never trade based on your own emotions. Trading based on your own greed or fear will put you on the wrong side of the market the majority of the time. To be a great trader you must stay humble. Big egos will

So far, so good….. Previous day support holds. Prices close above the previous days high. On the daily chart, the 30 RSI holds by end of day. A new trading range has developed over multiple days. The volatility expansion to the upside is greater than the volatility to the downside.

 The $DIA, $QQQ, and $SPY are still in long term up trends so far. Only $IWM has broken the long term uptrend by closing below the 200 day. $IWM has been the weakest index and $QQQ has been the strongest.  $SPY bounced near the 100 day and 30 RSI Friday. $DIA and $IWM did not