Posted on July 23rd, 2008 at 10:44 PM

Below are four charts.  Which charts do you want to buy and which charts do you want to sell? 

Chart #1

Posted on July 23rd, 2008 at 11:22 PM

Are you using the scanner?  One of my favorite scans is showing exactly what I want to see.  It is another tell in my bearish equity thesis.  Run the scan for longs and shorts.  Click here for instructions.  You can see that there are far more shorts than longs setting up.  As a matter of fact, when you filter for shares trading at least 500k per day, you come up with only shorts and no longs.  This is further confirmation that what we are seeing is nothing more than a pullback in a downtrend. 

Posted on July 24th, 2008 at 07:49 AM

 Per Joel's post the other day Where is the panic? we are now set up on the ($SPX), ($INDU), and I'm sure many other markets for another leg of the down swing. The trend is down, so we need to look for opportunities to short! Watch for triggers in these markets. The DOW is in about the right spot to close outside the RTC today! It is also perched upon the 1X1 Gann level of the last down swing. A break of this level should produce a good leg down.

By Anthony Trongone, Ph.D., CFP, CTA*

Most day traders want to achieve high returns but are unaware of their exposure to downside loss. How vulnerable are your assets to a single-day market correction? Unfortunately, if your assessment of impending risk is misleading, your overall performance will suffer.

A reliable assessment of downside risk depends on the accuracy of your indicators. Traditionally, this begins when you look at standard deviations; however, this does not always provide us with a dependable measurement of future loss.

By Gabe Velazquez, 15-year professional trading career with a focus on intraday and swing trading*
Posted: July 25, 2008

One Saturday in March of 2007, I had the reluctant task of having to sit through eight hours of traffic school. I tried being a good sport about it and got through it fine (the instructor made it bearable). As the class progressed, I began drawing strong parallels between being a safe driver and being a good trader. If you really think about it, many similarities apply.

To be a safe driver requires following the rules. The same goes for successful trading. In both endeavors, transgressions carry with them a commensurate penalty.