Posted on August 6th, 2008 at 01:38 PM
Caterpillar Inc. (CAT) has spent the last 3 days toying with the first waypoint to the MOB. This gave plenty of time to practice the money management we teach in our mentoring sessions. This is a good example of making sure you capture profits as the trade develops. See the chart.
Posted on August 6th, 2008 at 03:27 PM
I thought today would be a good day to take another look at the longer term chart of the S&P 500 Index. Keeping proper perspective can be somewhat challenging when you are trading and all of your energy is concentrated on one particular time frame.
As traders we need to have the mental flexibility to quickly change our perspective and look at things differently when the current situation doesn't have anything to offer. Many times by changing the way we observe the market, we can quickly begin to focus on other types of opportunities that may have been overshadowed by our current train of thought.
By Gary Panice
I trade S&P E-minis, and, when I'm doing well, the markets talk to me. I'm here today to draw your attention to the story that volume tells in short-term trading. As a day trader, I spend a large portion of my time looking for trend reversals. Nothing screams trend reversal like climax buying or selling volume. Volume moves price. Stochastics and MACDs hold a prominent place in my analysis, but volume is clearly "the man".
A volume surge may be the red flag that an extended move could be ending and setting up for a reversal. A volume surge is most likely what is necessary to move price out of a trading range and into the next tradable trend.
By Ed Ponsi, a globally recognized lecturer and teacher and the former chief trading instructor for Forex Capital Markets*
Posted: August 8, 2008
You are an American. You work hard, and you save your money. Your investment portfolio is in good shape, and your house is still worth more than you paid for it. Your net worth is greater than it has ever been. Yet, somehow, you don't feel as wealthy as you imagined you would at this stage. The money you have doesn't seem to go as far as it should. It's almost as if someone or something is draining your wealth while you sleep at night.
