I have been hearing a huge amount of talk on today’s chart about how the volume on the buy side is exceedingly bad. This is clearly not correct in regards to the Nasdaq.
Buy side volume has been increasing into the upward move. If you watch my videos you know that I definitely love buy side volume climbing into the upward move. That implies more and more followers are coming over to the bullish side.
Another reason this is bullish not only for the Nasdaq but the whole stock market is because of sector rotation theory. Technology stocks are usually the first to guide the market out of a bear market.
Take a minute to think about why this is true. Where is the innovation coming from to shrink expenses to business? Technology. A greater number of corporations have increased their use of email and decreased their use of normal postal mail to save expenses. Greater number of companies are purchasing a larger number of computers to advertise for free over the Internet and save money on in-print advertising. Quicker copiers are being bought with instantaneous convert to pdf and email from copier capabilities. Certainly, slender and focused companies will a recession create and technology is the critical component that makes efficiency and cost reduction possible. Consequently it makes sense that tech is the bull market leader coming out of a slump.
From a technical analysis viewpoint you ought to not be trading in this market. You ought to be on the sidelines right now because no prevailing group, neither bulls nor bears, have emerged as the leader. At the end of June the bears held the trend but all that changed in July. Over the last 2 weeks, the bulls have been so dominant that they have negated the downtrend and forced us into a cash and sidelines rating.
Still if we do get a pullback now, I think we’ll have a higher low and a new trend channel might arise. Take into account, the majority of trend channels have lifespans that are a great deal shorter than the current downtrend channel we have experienced ever since April. Put another way, this channel is outside its life expectancy and we might have a fresh one form before long.
The method to play this market is to wait in cash and watch the big boys battle this out for supremacy. You are a little fighter and do not wish to get trapped between two attacking armies. Settle in the bush and let the armies battle it out. When one army, either bulls or bears, becomes dominant, then leap out of the bushes and attack on their side. Just put your bets on the winning side when a obvious dominance or trend has developed.
In Stock Trading News This Last Week And A Special Effects Video
It’s certified. The Stock Trading Master was out traded today. What occurred? Lance was tricked in to shorting the stock market by the bearish Head and Shoulders top and the Burial Cross and then was murdered by bulls as the stock market reversed.
Even more complicated, this is the Stock Trading Master’s third loss in a row. That means that the stock trading rule activates where Lance tells himself he must take a seat on the sidelines for about five trading days.
It’s strange. When you don’t have a individual wager in the stock market how clear matters end up being. You are not a bull considering things from a positive bias, nor are you a bear considering things from a pessimistic bias. You truthfully own no partiality as none of your own money is at stake. So, your opinions end up being clear as you see the stock market for what it really is.
Having a trading loss rule is so vital that many credit the reality that institutional investors out trade amateur traders simply because they have such a rule. When a chap at a trading desk has a series of losses, the supervisor comes up and taps the stock trader on the shoulder. That means he’s finished for the session. No questions. No arguing. At the time the tap comes, you turn off your trading computer and go home.
In this episode Lance literally breathes flames in fury over his 3 consecutive losses. He then lectures himself and screams no more trading! [youtube:h7L7fONnrF0;[link:stock trading];http://www.youtube.com/watch?v=h7L7fONnrF0&feature=related]