In late November 2018, there was a considerable fear the Russell 2000 was setting up to fall even further. All thanks to the appearance of a “death cross.” However, more often than not, the death cross on the Russell 2000 can lead to a buying opportunity.
When it comes to technical analysis, moving averages are essential.Read More
One of the best ways to become a great trader is to try new things.
Unfortunately, there’s no such thing as a perfect strategy. But if you’re willing to trade outside of the box, you can become a better trader.Read More
It’s time to think about year-end strategies.
We already know:
Tesla Inc. has been a slow-motion train wreck.
All thanks to un-CEO behavior from Elon Musk.
In September and October 2018 shares plunged after video surfaced of him smoking pot on a podcast. That was in addition to resurfaced conflict with a British cave explorer, and Musk’s tweet that he was “considering taking Tesla private.”Read More
When bungee jumpers plummet off a bridge, what happens?
They pop back up, right?
The very same thing happens with stocks when they become too overbought or oversold. And if we can position ourselves for the exact moment the “snap back” happens, we can make money. And it’s actually quite easy to spot.Read More
Technical analysts attempt to predict direction by studying past price action and charts. And understandably, there are critics. In fact, some see it a pseudo-nonsense.
Forbes for example says it’s fundamentally flawed.Read More
“Why would I want to touch a stock that just plummeted?”
My answer, “Why not?”
What many traders don’t understand is that many pullbacks create opportunities, especially when it happens to a well-known stock.Read More
We have all heard the phrase, "the trend is your friend" and as traders we also know just how amazing profitable it can be trading alongside it as well as how devastating it can be to out accounts when we trade against it. But before we are truly able to spot likely trend reversals, we must be able to spot a trend itself.Read More
t’s not about having the perfect strategy.
It’s about the rule you abide by with each trade.
One of the biggest issues facing all walks of traders is a severe lack of discipline and structure in stock buying habits. Many fail to use stop losses, or even protect gains with a simple trailing stop loss strategy. Others risk far too much.Read More
Sometimes, simplicity is the best way to spot opportunity.
In early August 2018, shares of Weight Watchers (WTW) plunged $12 unexpectedly on an earnings overreaction. But the news really wasn’t worthy of such a gap lower.Read More
Herd mentality is the No. 1 killer of portfolios.
The idea is that if the herd is bearish, there must be reason for it.
Therefore, I should be bearish too.Read More
Traders are often told to buy excessive fear.
Warren Buffett even advises to buy when others are fearful.
It’s part of the reason some bought Twitter (TWTR) and Facebook (FB) after both witnessed ugly downturns on earnings fiascos.Read More
I love when traders tell me technical analysis doesn’t work.
While they’re entitled to be wrong, the fact remains that technical analysis does work, sometimes by up to 80% of the time. Granted, there is no Holy Grail, but if we use the right indicators, we increase our odds of success. Especially if we apply those indicators to well known stocks that may only be down temporarily.Read More
For most of 2018, oil prices have churned higher.
Granted, prices took a short breather in early May through June 2018, but that proved to be short-lived on fears that supply won’t be able to offset issues.
In fact, since the middle of June 2018, oil ran from a los of $63.50 to $74 a barrel – its highest point in about four years thanks to OPEC’s underwhelming news of a smaller than expected increase in oil production.Read More
Small-cap stocks have been unbelievable this year, hitting new highs in June 2018.
In fact, the Russell 2000 is up 9% on the year through July 16, 2018.
And that’s not likely to change any time soon for three reasons.Read More