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Day Trading or Swing Trading strategies based on the first trading day of the year

The January Effect For Day Trading & Swing Trading

The phrase “January Effect” has come to describe many different beliefs about how January can create some unique market insight. These beliefs range from tax loss selling in December creates buying opportunities for traders willing to hold into the first week of January, to the belief that the outcome of the year can be predicted [...]

Executing Short O.R. Day Trading Strategies

In this post you’ll find a video that shows you more specifically how I adjusted my day trading bias as a result of the New High / New Low indicator’s reading. In my last blog post I explained how the New High / New Low indicator works, and how it has recently changed my bullish [...]

Warnings At The Top

Warnings At The Top

Did you see the recent correction coming? Will you know if a rally to new highs is a head fake? I’ve used MarketGauge’s New High/New Low Ratio indicator for decades to help answer these questions. Here’s how it works, and where you can follow it for free… First, I don’t expect to pick exact tops [...]

A Big Move Coming Before Year End

The most important consideration in determining market direction is price action. It's not indicators that measure overbought or oversold. That said there and interesting oversold pattern in the 3-day RSI and the McClellan Oscillator. It is not a typical pattern I discuss and a full explanation is beyond the scope of an evening update, but [...]

Text Book Trend Day

Today is a good day to have mental impression of in your trading brain. In yesterday’s Focus List I emphasized the likelihood of a trend day occurring today or soon. While the trend day did not start at the low and end at the high it was a very nice trend day. It started strong [...]

The 200-Day Moving Average Can Make Or Break A Trend

200-Day moving averages are where the big corrections end and major trends are defined. Over the years I've come to respect the 200 like unwelcome advice from a grandfather - you don't always want to believe it, it often takes time to sink in, but unfortunately its usually prudent to follow it. The SPY, DIA, [...]

Markets Close Below Prior Low

Today was a weaker close than the bulls would like to see - below the prior day's low and S1 in the almost all the key the attempt to breakout  - SPY, DIA, QQQ, XLF and KRE.  IWM also closed below S1 but managed to hold above the prior low. The SMH and OIH held [...]

Day & Swing Trading The Space Between Perfect and Divergence

Rules to trade by when considering trading breakouts and reversals: When everything looks perfect across all 4 market watch charts (SPY, DIA, QQQ and IWM) it is often too late to follow the move in that direction. When the 4 market watch charts diverge it is a warning of potential trend change. But if you [...]

Stick to your rules

If you follow our rules for determining bias based on pivot stack, S1 and R1, and/or the 3-day pivot along with the opening range, today was a tough day. Don't be discouraged. The trading room has had a 3 week run of being right on about 70% of our trades. During that time we've had [...]