September 2012 Blog Posts (18)

Secret Trading Tip #9

The Double Stop Reversal



Stop orders are often used to try to protect profits. Take the stop order to another dimension and use it to reverse your position and open another trading possibility!



When you place a stop order, it is only activated if the market trades at or through the stop price. These stop prices are often key technical levels.



If…

As traders came into Thursday’s open and then shortly thereafter, they were deluged with bad data.  Whether it was from the US, Asia, or Europe – the economic data was in a word: horrible.  



Because of this bad data the US indices opened lower.  Yes, a lower open is shocking, but that didn’t last long.  Although the ensuing waves of bad news hadn’t even…

Healthy respect for the markets

Markets are powerful things. When you first start trading, you are likely to hear a lot about the risk that comes with the potential opportunities in trading. Don't just pay it a lip-service. It is important that before you risk one dollar, you…

Knowing your way around a chart   



For most traders, charts are like their road maps to potential trades. Technicians see potential patterns, key clues that they interpret for trading opportunities. Fundamentalists see confirmation of news stories or supply and demand dynamics playing out in the price fluctuations. Charts are indispensible to traders



Understanding what a chart is telling you is paramount for traders

We are going to…

Is this a new normal where little-to-no job growth is, well, “normal?”  Friday’s employment data was very sub-par again.…

EUR/USD: Technical Analysis

Eurodollar has stalled a little this morning. The current level lies close to the monthly pivot, which could mean we are at a reversal point and the exchange rate could roll over here. A break back down below 1.2761 would give a strong confirmation signal, with 1.2700 then in sight. A move above 1.2803, however, could see it push higher to the major multi-month trend-line at 1.2900 where it will probably stop because of…

Trade with a Plan – Setting Your Limits    

  

I think trading with a specific plan is one of the most sensible things a trader can do. It helps you learn and identify key areas to watch for in a market. More importantly, it helps you avoid sabotaging yourself because it helps keep your emotions in check. One of the key components of a trading plan is knowing your exits. One way to close an open trading position is with a limit order.  …

EUR/USD: Technical Analysis

Eurodollar has moved up to the upper channel line and hit resistance. It has also finished an A-B-C formation and therefore it will probably fall from here, down to perhaps support at 1.2625, although there are no reversal signs from price yet. The other alternative is a move higher, however , this would constitute a breakout from the channel and is a little less likely. A strong move above 1.2695 or so might signal such a breakout with the…

EUR/USD: Technical Analysis

Eurodollar has reached a strong level of resistance at the 1.2625 mark where price has been repulsed several times before. A shooting star candlestick has already formed on the hourly chart and if a move lower evolves then it will probably reach support from moving averages at 1.2565. A move to the bottom of the range at 1.2510 is also possible. Another possibility is a move higher to the top of the channel at 1.2650 – or even an upside…

EUR/USD: Technical Analysis

Eurodollar has pushed lower, breaking down though the neckline of the double top and almost reaching the profit target at 1.2475. Now it has rebounded and begun moving higher again. This is probably a counter-trend move, or Elliot wave 4 of the move down and will probably move up to the 1.2555/60 level where clustered resistance should turn it back lower again – although wait for confirmation - and it may then reach the 1.2475 level of the…

EUR/USD: Technical Analysis

The EUR/USD is still in a counter-trend rally. It is unlikely to be the start of a new trend higher and therefore will probably roll-over. Currently there is a possibility the pair could be starting a move down to 1.2550. If it goes below there it would constitute a break of the neckline of a double top pattern and target 1.2475. If the trend continues tracking higher, however, it could also reach resistance from the upper channel line at…

I thought it was unusual that nobody in the Lame Street Media mentioned the recent momentous accomplishment of the Obama administration: it has already racked up enough (current) DEBT, when added to the prior DEBT, equates to a sickening $16,000,000,000,000.00 (that’s trillion$) in the red.  Yes sir, like Fraud Street, Congress just keeps kicking that can down the road that never seems to end. But when it might, Congress decrees that another 10 miles of road lay beyond the horizon…jut…

There isn’t much left to say before the J-Hole symposium.  The market is dead, there’s no volatility and little volume.  Whether Bernanke green lights QE3 or not, one still wonders if there will be better trading ranges.  Only time will tell and time is running out.



The following is Morgan Stanley’s take on it…



Vincent Reinhart, Morgan Stanley: The Message from the Mountains



We have had low expectations for significant…