Education

Trading Day Classifications and the Prospects for a Year-End Rally

Much is made regarding price action and day type classification. To keep things simple, let’s consider four possible day type classifications for this article. We can have: Inside range Outside range Up range Down range These are all pretty self-explanatory and are simply defined by comparing the current day’s (or…

Trading The Russell 2000: Here’s A Timing Strategy

In our previous article, we looked at using the small cap Russell 2000 Volatility Index (INDEXCBOE:RVX) to better time long entries in the Russell 2000 Index (INDEXRUSSELL:RUT). The Takeaway:  Waiting for a 20 day or 50 day peak in the RVX proved to be a consistently favorable long entry on…

3 Things I Learned From Mike Epstein

I was honored to receive the Mike Epstein award last week in New York from the MTA Educational Foundation.  This is an award given “for support of the MTAEF mission, and being an outstanding advocate of Technical Analysis.” I got to know Mike Epstein toward the end of his career, when…

Using RVX Small Cap Volatility Index to Time Your RUT Entries

With the Russell 2000 index (INDEXRUSSELL:RUT) sitting at record highs, many traders are wondering how much longer it can continue to climb without a meaningful retracement. Aside from a 0.75% pullback in early September, the move has been straight up. While no trader wants to miss out on a strong…

Market Volatility And Opportunity Over The Years

I am often asked what is the best market to create intraday trading strategies. There are maybe literally one million factors – both market related and personal – to answer that question, but one way to try and attack this question is to look at the amount of money each…

S&P 500 Seasonality Turns Negative In Late September

As summer trading (hopefully) comes to an end we all might be in store for a bit more volatility and an increased likelihood for some downward pressure on the S&P 500 (NYSEARCA:SPY) in the coming days. Historically we are entering a negative time of the year dating back to the…

Making Sense Of A Market Of Stocks

I regularly run screens for stocks making new highs and new lows on different time periods. While it’s always been a source of new ideas, it also can serve as a perfect illustration of the market maxim, “It’s not a stock market, it’s a market of stocks.” It’s very easy…

Uncovering Value: Price Discovery And Irrational Investing Behavior

This post was written with Chris Kerlow and Craig Basinger. The essence of money management can be encapsulated in searching for investments that are trading below their intrinsic value. In theory, it works like this:  Buying these companies low, and as the market comes around to realize their intrinsic value,…

Want To Automate Your Trading Edge? Start Here

I have spent most of this entire year working on automating my edge. For my style of swing trading, the only discretionary input now is picking which setups I actually want to enter. Scanning, setups, triggers, sizing, stop/target placement, trailing stop etc. has all been standardized and taken out of…