Blockchain, the technology that underpins Bitcoin, has been called the ‘saviour of global finance’. Banks, exchanges and regulators are keen to assess its applications for markets transactions. Philip Stafford, FT Trading Room editor, analyses whether it could work.
Technology and regulation has ushered in a revolution in equities trading, wresting large parts of the daily flow from the big Wall Street banks. As efficiency squeezes out profits, Nicole Bullock talks to some of the new breed about where they see the best opportunities.
Post-crisis regulation is harming market liquidity, says Christopher Giancarlo, a commissioner with the Commodity Futures Trading Commission. He tells Philip Stafford, editor of FT Trading Room, that regulators are giving too little thought to trading as they test their rules.
The number of futures industry middlemen, the commission merchants, has halved in the past decade. Walt Lukken, chief executive of the FIA, explains to FT Trading Room editor Philip Stafford why this is a concern for markets and trading.
Clearing houses have been likened to nuclear power stations – necessary, but you would not want them to fail. Philip Stafford, FT Trading Room editor, looks at how regulators are tackling systemic risk and the problems arising from this.
BATS Global Markets, the second-largest US stock market, has a new chief executive in Chris Concannon. He discusses with Philip Stafford, editor of FT Trading Room, BATS’ proposals to increase liquidity in small caps and push into foreign exchange markets.
Trading in UK small and mid-cap stocks could be deeply affected by new European securities rules. Brian Schwieger, head of equities at the London Stock Exchange, tells Philip Stafford, FT Trading Room editor, about the pitfalls of ‘one size fits all’ regulations.
The last year has seen a proliferation of corporate bond trading platforms, according to Frederic Ponzo, managing director of GreySpark. He discusses with FT Trading Room editor, Philip Stafford, what the likely winners will need to succeed.
A cynic would ask “When does this rally end?” A trader… couldn’t care less.
Buyers saved the market from another sell-off, short-squeezing the market to a fresh new tradable high.
Let’s dive inside action and note key levels and the trending stocks of the bullish day:
Continue to reference the “S&P 500 Range Planning” post for a broader perspective.
While price continues to push gently to new highs, the underlying internals and momentum just aren’t keeping up.
No, a negative divergence into resistance does not mean the price is required to reverse lower, only that the probabilities suggest that it will do so.
We’ll thus be bearish should price turn and reverse sharply down away from the 2,120 upside target.
However, we’re traders and don’t care about they whys or reasons or price movements, and thus will continue trading long to capture intraday or short-term trading profits from on ongoing bullish move and short-squeeze (financial losses from the logical – yet incorrect so far – bears).
Let’s see what our Breadth Chart reveals about current market strength (or weakness):
There’s a slight mixed message today with sector strength coming from Offensive sectors Financials, Discretionary, and Materials yet this strength is counterbalanced by the top sector today – Utilities (a defensive sector).
Money flow paints a picture of bull/bear struggle at the highs with neither side emerging victorious now.
We have potential bullish trend continuation plays in the following stocks from our scan:
Amazon (AMZN), Microsoft (MSFT), Ball Corp (BLL), and Newmont Mining (NEM)
If you’re must be a bear on a bullish day, you can try these bearish/weak names:
Herbalife (HLF), Boeing (BA), 3D Systems (DDD), and CommScope (COMM)
Follow along with members of the Daily Commentary and Idealized Trades summaries for real-time updates and additional trade planning.
Corey Rosenbloom, CMT
Afraid to Trade.com
Follow Corey on Twitter: http://twitter.com/afraidtotrade