Trader's Thread 05 (Jan 20 - Dec 26)

[winston]

Swing Trading Strategies Could be the Key to Day Trading

“There may not be many significant statistical edges available to day traders.”

Swing trades are ones that last a matter of days or weeks.

Source: Benzinga

https://finance.yahoo.com/news/swing-tr ... 52460.html

[behappyalways]

Gareth Soloway
@GarethSoloway

Today is the 1st trading day of the month. New money flow comes in and usually lifts the markets nicely.

Add light volume and this 'should' be a no brainer up day.

The fact markets have given back all their gains from the gap is significant imo. A warning sign....

https://mobile.twitter.com/GarethSolowa ... 8825884675

[behappyalways]

Technical Analysis of Stock Market | Musical Chairs
https://m.youtube.com/watch?v=AnhxIUXeZqE

[behappyalways]

Points to Ponder | ShadowTrader Video Weekly 06.27.20
https://m.youtube.com/watch?v=gffFxxTTS8w

[behappyalways]

Technical Analysis of Stock Market | Complacency Builds
https://m.youtube.com/watch?v=df6paGVI4Bc

[winston]

Jim Cramer’s three types of stocks to buy if the market sells off

by Tyler Clifford

KEY POINTS

“Remember the three types of stocks to buy on down days:-
1. The ones that rallied anyway
2. The ones where you’re finally getting a long-awaited pullback and
3. The ones that got recommended but failed to rally because of the bad tape

“Think of these stocks as textbook examples of what you can buy on a down day,” he said.

Source: CNBC

https://www.cnbc.com/2021/07/06/jim-cra ... KW,4QWFG,1

[winston]

Want to Be a Tremendous Trader? Follow These 10 Tips

If you react quickly to changing conditions, your chances of making money increase dramatically.

By JAMES "REV SHARK" DEPORRE

#1 Partial Buys and Partial Sells
#2 Diversify by Time Frame
#3 Pressing When You're Right
#4 Force Yourself to Make a Decision
#5 Selling Is Your Most Powerful Tool
#6 Focus on Reaction Rather Than Prediction
#7 Keep Accounts Close to Highs
#8 Charts Are Your Best Management Tool
#9 Worry More About Positions Than the Indices
#10 Stay Positive

Source: The Street

https://realmoney.thestreet.com/investi ... _ven=YAHOO

[winston]

The Questions Investors Should be Asking Themselves

Ahead of third-quarter earnings season, James 'Rev Shark' Deporre has some thoughts on what investors should be thinking about.

by BRIAN O'CONNELL

With the third quarter almost in the rear-view mirror, James “Rev Shark” Deporre has some queries for investors:

--- Can the indexes continue to build on the powerful V-shaped bounce that kicked in after a sharp drop a week ago?

--- While stocks were able to fully recover their losses in just four days, do they have the juice to keep on running as we look ahead to third-quarter earnings?

They’re questions with no direct answer, although the trading trend is positive.

“It picked up steam last Monday with the Evergrande debt crisis serving as a convenient excuse, but this market has had good underlying support, and the dip-buyers quickly showed up.”

The action of the last few weeks was triggered in part by the large disparity between the indexes and secondary stocks.

The indexes and some key big-cap stocks have been extended while only about 40% of all stocks have been trading over their 200-day simple moving average.

With October beckoning, the stock market still has a couple more weeks of negative seasonality to deal with, but Rev Shark said that investors should start to see positioning ahead of strong earnings reports.

“When the market fails to embrace the negative thesis, the folks with idle cash slower put it to work out of fear that they will be left out,” Deporre said. “This pushes the market higher and causes more fear of being left out.”

Source: TheStreet, Inc.

https://www.thestreet.com/investing/the ... Themselves

[winston]

The Keys to Watch During Volatile Trading
James ‘Rev Shark’ Deporre identifies the indicators driving corrective action

by BRIAN O'CONNELL

Two key market barometers to track are interest rates and energy prices, as both are driving further corrective action, says James “Rev Shark” Deporre.

“One bull trap is a spike in energy prices combined with higher interest rates and inflation, which are causing concern,” Deporre wrote recently on Real Money.

“Big cap technology stocks like the FATMAAN names tend to be more sensitive to interest rates, and that is where the brunt of the damage is occurring.”

The market has experienced “periodic spikes” during recent trading sessions, as investors jump in and out of the market. That’s not helping right now.

“The process of failed bounces is what eventually creates the dismay and disgust that leads to a market bottom,” Rev Shark noted in Real Money.

“Negative seasonality still continues for a while, but in about two weeks, there will be some third-quarter earnings news that will help to shift the market narrative.”

As Rev Shark has often said, bad markets don't scare you out, they wear you out. “Bottoms are formed when market players grow tired of the miserable action and don't want anything to do with stocks,” he said.

“That process has been ongoing for months in small-caps, but big-caps still have some selling to do to reach a good level of disgust.”

Another area that needs to be monitored is sector flow.

“Parts of the market have already corrected much deeper than others,” Deporre added.

“Are the small-caps and secondary stocks showing signs of relative strength, and are they building support levels? Typically when the indices are hit hard, small-caps suffer from a lack of bids, but we need to watch to see what the intensity of the selling looks like.”

Source: The Street

https://www.thestreet.com/investing/the ... %2BTrading

[winston]

Three Roadblocks to Successful Trading

by BRIAN O'CONNELL

“You buy 'good' stocks with promising charts or fundamentals at attractive prices and then wait for them to rise in price,” Deporre wrote recently on Real Money.

“If you make a mistake, then you cut your losses and move on to the next stock and wait for it to work. Over time you should have sufficient winners to produce solid returns if you cut losers quickly and stick with winners.”

The three stock tenets:-
1. Luck
2. Randomness
3. Patience

Source: The Street

https://www.thestreet.com/investing/thr ... %2BTrading