Time vs. Price Stop Loss…which is better?

–          Time & Price Stop Loss o    Price Stop = certain price where the trade becomes invalid, this will exit your position at a specific price level in the market. o    Time Stop (5-second rule)= certain amount of time that we will accept before it moves.  If the trade triggers (speed, size, moment, pattern) we […]

Euros tumble on Bailout Concerns, Crude Oil tumbles as demand drops, and Finance Ministers attend the G8 Summit in Vienna

Traders around the world are reacting to news this morning out of Europe regarding bailout potential for southern Europe.  The debt level (and concern level) keep rising as northern Europe keeps trying to help save the stability of the Euro. The falling Euro is putting pressure on Global banks to keep interests rates lower (to […]

Inside Day told me to avoid Fake-Out Breakouts

830am est Jobless Claims come out higher than expected, and within the range of the average 430k jobless claims which we have been used to seeing. This is the same concern that Bernanke spoke about on Tuesday night, so these sluggish jobs are making it tough to sell the idea of a recovering economy. We […]

Trade the News Market Internals Update

**Looking Ahead*** – (PE) Peru Central Bank Interest Rate Decision: Expected to raise the Reference Rate by 25bps to 4.50% – 11:00 (US) Fed to purchase $6-8B in Notes/Bonds – 11:30 (US) Fed’s Yellen speaks on Housing in Cleveland – 12:00 (LX) ECB’s Mersch presents annual BCL Report – 13:00 (US) Treasury to sell $13B […]

Can Average True Range be Too High?

What does Lower Average True Range mean? –          There is less trading range on average for the specific timeframe you are looking at. –          HIGHER ATR = wider range –          LOWER ATR = narrow ranges –          Lower ATR will results in more false signals –          Sometimes the ATR can be too high? Can the ATR […]

Crude Oil moves higher, Dollar trades sideways, and Traders Wait for Jobless Claims

Traders around the world are reacting to higher prices on crude oil as OPEC’s Meeting ends in a stand-still on Wednesday. The Dollar Index stabilized this morning after spiking oil prices and lack of confidence pushed the DX 06-11 contract to new lows on Wednesday. Traders this morning are preparing for news on Jobless claims […]

Who Makes the PROFIT from Higher Crude Oil Prices?

OPEC Says No… Crude Oil says GO!

We begin our day reviewing the news.  We know today has 3 phases of crude oil inventories, which means we need to be aware the market personality will be transitioning twice today. We also know that OPEC has their meeting, which will have everyone waiting to hear the news from OPEC.  We also know that […]

Trade the News Market Internals Update

***Looking Ahead*** – (BR) Brazil Central Bank (COPOM) Interest Rate Decision: Expected to raise the SELIC Target Rate by 25bps to 12.25% – 11:00 (US) Fed to purchase $5-7B in Notes/Bonds – 12:00 (EU) EU’s Rehn speaks at Conference in Koenigstein, Germany – 13:00 (US) Treasury to sell $21B in 10-Year Notes Reopening – 14:00 […]

Fade The News when everyone THINKS they know where price is going

Fade The News: Traders expect a certain news event has already been ‘priced into the market’ which means when the news comes out, rookie traders try and buy/sell, only to find the BIG MONEY traders waiting to take it from them. Some easy clues for when to fade the news: –          When its very easy […]