Larry Levin's Blog – August 2012 Archive (6)

Do you like poorly crafted movie sequels? It seems like there hasn’t been an original movie blockbuster in forever. The money making formula in Hollywood appears to be: take a movie that made money on the first go, slightly change the plot, and then release the sequel, the prequel, the 3-D version until they’ve milked every last dollar out of the original idea.  “Finding Nemo” in 3-D would be the latest version.



Sadly things aren’t all that different in the markets. Friday’s…

How to Determine Where the Real Support and Resistance are Everyday     

  

Understanding support and resistance levels is an extremely important technical skill in any market, and I think it's absolutely critical if you plan on trading the S&P E-Mini market. Professional Floor Traders are aware of an entire range of major and minor support and resistance levels before the market opens each day. They also know how to…

Hey, did you hear the one about the banker that pilfered over $1billion from his clients and got away with it? Oh wait, that’s not a joke – it’s real life. How about a proverb: Give a man a gun and he can rob a bank – give a man a bank, and he can rob the world. Oh wait, that’s real life too!



Last week came word from US regulators that neither Jon Corzine, nor any of his senior management, will be prosecuted for stealing $1,000,000,000.00+ of client funds to back their terrible…

Avoiding Mental Sabotage



I have heard that 95% or more of all traders ultimately fail.

Have you ever wondered why?…

(Like a Zombie, not much changes…) While comparing zombies and our current “walking dead” stock indices yesterday I said “…I mentioned the day’s preposterously low volume with a better close.  By the way, at the close of the session, the ES had more aggressive sellers than buyers…and it managed to keep from liquefying into a bowl of zombie…

Candlesticks & Engulfing



Candlestick charts have all kinds of potential patterns that technicians are watchful for. One of the easiest to spot is an engulfing pattern. This set-up consists of two candlesticks, one of which is “engulfing” the previous one. That…