Posted by Paula Coombe on March 17, 2010 at 10:08am
Sometimes you can have bad run, but do not get upset and keep going.Just reduce your trade size and keep going with less risk and more control of your trading poitions.Once you get your confidence back and the winning streak returns, then go back to normal.Money management is the key function for proper and successful trading.If your trading hits a stop loss, who cares. If it hits the target, then it is very good and it means success.If the stop losses get you down, chin up and move on to the next trade and you will have a good run eventually.I have had 12 days without stop loss being hit in the past and sometimes I get my stop losses being hit several days consecutively.Ensure that the good days make up for bad days and that you win on more days than you lose thus maintaining a winning ratio.If you have a trading setup that is rubbish and your arguments for entering trades are poor and your stop losses are hit, then you must be upset and rectify situation and learn to trade properly.If you are not prepared for trading, it is like having a boxing fight and not training for it. Of course you will get knocked out in 3rd round and you will not last.So the question is how is your training going? Are you ready and fit to last 12 rounds? Can you take the punches? Learn to take small punches and you will survive 12 rounds?Those who get KO do not train properly. Those who train properly and who still manage to get KO will go back and train harder and come back with a vengeance?
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By Nicholas Santiago on March 16th, 2010 3:47pm Eastern Time
The semiconductors have been one of the leading sectors of the NASDAQ since the 1990's. Recently the semiconductor index has been lagging the NASDAQ since January 2010. Historically the semiconductors have lead the index higher, which has not been the case as of late. However, today the index is flexing some muscle by trading sharply higher on the day.
Many leading individual semiconductor stocks that have been lagging by trading below their 52 week highs are showing strength today. They include Intel Corporation (NASDAQ:INTC), KLA-Tencor Corporation (NASDAQ:KLAC), Applied Materials, Inc. (NASDAQ:AMAT), and Texas Instruments Incorporated (NYSE:TXN) just to name a few. Intel Corporation is actually at a new 52 week high today breaking above it's January 2010 level.
The important chart here is not the individual names that are all running higher like a pack of wolves, it is the Semiconductor HOLDRs ETF (NYSE:SMH) chart that should be watched closely. This index looks to be at a very good resistance level on the daily chart at 27.75 – 28.25. This could certainly be a pullback level for this ETF. It is important to remember if they all trade higher together they usually all pullback together.
By InTheMoneyStocks on March 16th, 2010 10:08am Eastern Time
The U.S. Oil fund (NYSE:USO) is trading sharply higher this morning as the U.S. Dollar declines. Generally, when the U.S. Dollar is weak most commodities and inflationary stocks will catch a bid higher.
Today the Federal Reserve Bank will announce their policy statement on the Fed funds rate and the economy. The market sentiment is not expecting any change in rates from the Fed. Therefore, this is putting pressure on the U.S. Dollar giving most commodities a lift higher today. The U.S. Oil Fund (NYSE:USO) will have intra-day resistance at the 39.60 level.
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JPY weakness broadens amid expectations that Wednesdays announcement from the Bank of Japan will renew the case for quantitative easing. Reports that Japanese FinMin Kan would use FX reserves to fund DPJ programs were later denied but some sources say there may be some truth to them. USD weakness. We expect both the FOMC and BoJ decision to be negative for the JPY as long as there is no marked equity sell-off occurs as a result of the statement. USDJPY WEEKLY technicals point to further advances nearing 92 in the medium tem. GBPUSD is capped at $1.5200, which is the down channel from the Jan 19 high. GBP watchers are cautioned of a speech from BoEs Bean at 19:00 GMT. Note that todays FOMC announcement is due at 18:15 GMT and not 19:15 GMT. EURUSD still shows no signs of regaining $1.38.
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By Gareth Soloway on March 15th, 2010 6:16pm Eastern Time
The markets sold early, surged late. When the dust settled, the markets ended flat. It was a wild start to options expiration week. Options expiration week is usually the most volatile week of the month due to the games that are played by institutions. Today looked exactly like that. The markets came down quickly, as volume was mediocre at best. Once mid day hit, volume dried up. Late in the day, a few buy programs kicked in and it turned out to be a non event for the day.
What does this tell us about tomorrow? Most likely, between the economic reports at 8:30am ET and the FOMC policy statement at 2:15pm ET, there will be more volume. Generally, volume does not go hand and hand with the recent up market. However, the late day reversal does seem to give hope to the bulls for further upside. Bottom line is this, be ready for the options expiration games. You have seen it today already and will continue to see for the remainder of the week.
Gareth Soloway
Chief Market Strategist
InTheMoneyStocks.com
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By TRADER X on March 15th, 2010 3:38pm Eastern Time
Gold and silver are both trading higher during today's trading session. It is rare to see gold and silver trade higher when the U.S. Dollar index is strong on the day. There could be several reasons for today's action in gold and silver.
Many traders and investors view gold as a safe haven against all fiat currencies. As we all know gold has been the currency of choice since recorded history by most civilizations. Therefore, when the U.S. Dollar declines it is highly likely that we see gold, silver and most commodities to rise. Since the March 2009 stock market lows gold has lead the market higher as the Federal Reserve Bank and the U.S. Treasury have tried endlessly to inflate this market back to health and to their credit it has worked so far. Tomorrow is the FOMC meeting when the Federal Reserve Bank makes it's statement about the economy and the Fed funds rate. Currently the Fed funds rate is at zero percent and the market is not anticipating a rate hike in the near future. Therefore, today gold traders seem to be positioning themselves ahead tomorrow's Fed meeting.
Recently gold has made a high in December 2009. Since that time gold has made lower highs on the daily chart. This type of action is telling us that gold could be very volatile in 2010 and may see lower prices throughout the year. However, in the long term as long as central banks print money and the major nations continue using a fiat money supply system it prudent to hold some physical gold for the long term.
Gold can be traded by using the SPDR Gold Trust ETF (NYSE:GLD). Often silver will trade with gold and it historically looks cheap compared to gold. Trader can use the iShares Silver Trust ETF (NYSE:SLV).
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IF THE DOLLAR CHART IS NOT ENOUGH, then not sure what is. http://chart.ly/vea8b7 The bullish engulfing pattern show in todays USD Index candle is typical of trigger to upcoming USD strength (as seen in previous occasions in the chart). S&P500 touched 1150 on Wednesday, Thursday and Friday but failed to close at that level in each of those days. EURUSD needed to close above $1.38 on Friday in order to break out of its 4-month trend line. It closed at $1.3760. Today it trades at $1.3670. USD Index was required to hold above 79.20 on Friday to sustain its 4-month uptrend. Today it trades at 80.19. Register for ASHRAFs CANADA EVENTS (VANCOUVER-MONTREAL-TORONTO) http://bit.ly/acXvOHRead more…
