20
May

FT: Clearing houses — too big to fail?

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.

FT Trading Room

13
May

FT: Tweaking the US equity market trading rules

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.

FT Trading Room

6
May

FT: Trading threat to UK small caps

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.

FT Trading Room

29
Apr

FT: The corporate bond trading fight

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.

FT Trading Room

24
Apr

April 24 Rally Rages Market Update and Stock Scan

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)

Afraid to Trade Premium Content and Membership

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

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

22
Apr

FT: Explainer — the 2010 flash crash

FT markets editor Michael Mackenzie explains latest developments on the 2010 ‘flash crash’ that saw the Dow Jones drop massively in a few minutes. He focuses on the arrest of a UK trader, the role of equity futures and flaws in regulation.

FT Trading Room

21
Apr

EURUSD Looks to Have Topped as Projected


The EUR/USD has appeared to have to topped as projected last week.  It has followed the channel resistance well so far.  A nice close beneath the previous low will also break down the upward sloping channel at 1.0710.  A nice close beneath that level should trigger heavy selling pressure with the wave ii) high remaining intact.  Once we get a convincing move downward I will restructure the chart and channels to the downside.  Look for lower levels immediately from here.

PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.


Principle Analysis: Elliott Wave Principle and Automated Strategies

19
Apr

EURUSD 30min


Looks like I was too early on the calling an end to the euro’s correction so I had to relabel my wave count.  The rally is in choppy overlapping waves so I have little doubt this is a correction.  There is a confluence of resistance from the 61% Fibonacci level and the hasty channel I drew at 1.0837 that should cap the rally.  We might get some volatility tomorrow morning with CPI data coming out, so a nice shot higher and reversal lower would be a good sign a top is in.


PLEASE NOTE: THIS IS JUST AN ANALYSIS BLOG AND IN NO WAY GUARANTEES OR IMPLIES ANY PROFIT OR GAIN. THE DATA HERE IS MERELY AN EXPRESSED OPINION. TRADE AT YOUR OWN RISK.


Principle Analysis: Elliott Wave Principle and Automated Strategies

18
Apr

Yes Indeed the Trading Range Continues: What You Need to Know

Given that the S&P 500 remains in a broader trading range pattern, today’s sharp downside action is precisely what was expecting from a charting standpoint under the “Range Continuation” scenario.

Let’s update our levels – which are exactly the same – and put the price action in context as we plan the next target.

Start with the update earlier in the week which clearly defined the trading range and plans.

The pure price chart above highlights the range itself – 2,045/2,050 to 2,110 – and the midpoint at 2,080.

As simple as it sounds, playing “ping pong” reversal trades off these levels has been an effective short-term strategy.

Taking it one step further, we can see the positive and negative momentum divergences that assisted in forecasting a likely reversal away from these support or resistance boundary levels.

A lengthy negative divergence “undercut” the rally and mid-day Double Top into 2,110 and today showcases the aftermath as price once again falls sharply and decisively from this level.

The initial target – the Midpoint – has already been achieved so be sure to monitor this level for a bullish bounce.

Otherwise, a trigger-break down under 2,080 suggests sellers will dominate the market and thus price could fall once again toward the 2,050 level.

Here’s the bigger picture once again as seen on the Daily Chart:

Ultimately, we’re planning for another downside resolution and target play down toward 2,050 (which would be likely IF price breaks firmly now under 2,080).

The Alternate Plan would be the Breakout Scenario which could play out similarly to February.

Note two down days against the (then) upper resistance near 2,060 and then a bullish surge that created a breakout and triggered a Short-Squeeze.

Barring an ‘alternate’ breakout scenario, we’ll expect the power of the trading range to hold price within its gravitational pull (balance/equilibrium).

Whatever strategies you use, be sure to incorporate the simple Range Rectangle Levels into your plans.

Afraid to Trade Premium Content and Membership

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

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

15
Apr

Another Market Reversal Intraday Update Stock Scan April 14

If you followed Market Internals yesterday, you had a clear roadmap to trade today’s session as a Repeat Pattern – Divergences – suggested yet another morning market reversal.

Start with a read of yesterday’s mid-day report (more was detailed to Idealized Trades members) and compare that with today’s session that unfolded so far.

Let’s dive inside action and note key levels and the trending stocks of the day:

Just like the morning Bull Trap yesterday – on a clear and lengthy divergence – today’s session triggered a Bear Trap on yet another big divergence into a key support level just above 2,080.

The result was another, repetitive reversal which set the stage for the afternoon session.

We’re seeing another failure into 2,100 which is our pivot level and now focusing on the movement under 2,095.

Let’s see what our Breadth Chart reveals about current market strength (or weakness):

Unlike yesterday, Breadth actually paints a bearish message with Energy and Utilities the strongest sectors while all others – except defensive Consumer Staples – lag the 50% line.

We have potential bullish trend continuation plays in the following stocks from our scan:

Ciena (CIEN), JB Hunt (JBHT), Coty (COTY), and Fastenal (FAST)

Potential downtrending candidates exist in stocks showing relative weakness today:

Norfolk Southern (NSC), Wynn Resorts (WYNN), Packaging Corp (PKG), and Monster Beverage (MNST)

Afraid to Trade Premium Content and Membership

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

Corey’s book The Complete Trading Course (Wiley Finance) is now available along with the newly released Profiting from the Life Cycle of a Stock Trend presentation (also from Wiley).


Afraid to Trade.com Blog

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