ETF Pairs as Sentiment Gauges: IWM and SPY
Recent posts have looked at EEM vs. SPY and XLY vs. XLP as sentiment gauges for the broad stock market. Above we see yet another ETF pair...
ETF Pairs as Sentiment Gauges: EEM and SPY
I recently took at look at ETF pairs--consumer discretionary and consumer staples issues--as sentiment gauges for the broad stock market. ...
Midday Briefing for April 19th: Continued Risk Aversion
Although major indexes have traded below Friday's lows thus far today, we're seeing bank stocks ($BKX, above) holding above those lo...
Morning Observations From the Doc
* As we can see, financial stocks (XLF) broke out to bull market highs in March, only to pull back sharply on very expanded volume on Frida...
Bulls Continue to Dominate: A Survey of Stock Market Sentiment
After Friday's decline, the CBOE equity put/call ratio moved toward levels that have been normal for the bull market, but hardly showed ...
More Coaching Insights for Traders
As a follow up to the recent coaching insights for traders , here's a second round of thoughts and observations: * Pull out your larges...
Sunday News, Views, and Review
* How is personality related to trading success ? * How to turn stress into positive emotion ; * Gauging three states in markets : uptre...
An Updated Look at Stock Market Strength
Even after Friday's broad decline, we can see that over 80% of shares remain above their 50-day moving averages, per the top chart offer...
Where to Trade: Finding a Trading Career
Props to SMB Trading for their excellent post on finding a new trading home . Time and again, I've found that long-term success in mark...
A Picture of Risk Asset Selling
The futures heat map from FinViz shows how the GS-related selling kicked off a general divestment of risk assets, with stocks, metals, and ...
Midday Briefing for April 16th: Following Up a Sell-Off
Note how we saw a significant uptick in volume and volatility on the downside breakout that followed the GS news. We traded below support a...
Dr. Brett's Coaching Insights for Traders - Volume One
* If you're not seeing the market well, step back and reassess your views. If you're not trading well, step back and reassess your...
Macro Perspectives and More
* The role of social cognition in trading ; * What you trade is less important than how you manage the trade; * Record optimism among re...
Reflections of Economic Strength: Chart Review
Here's a quick chart review reflecting the recent market strength that has followed from strong economic performance in the U.S. and Asi...
Midweek Reading and Perspectives
* Creating change with brief therapy techniques; * Nice overview of outlook for currencies ; * Finding opportunity by trading stocks in ...
A Brief Trading Self-Assessment
* How many of your trades today (or this week) had an explicitly defined risk and reward? * How many of your trades today (or this week) d...
Tuesday Insights and Highlights
* The dangers of micromanaging trades ; * What goes into emotional well-being and why it's important; * Great list of deep market tru...
Midday Briefing for April 13th: More Range Trade
We're seeing another one of those range days, in which price oscillates around a relatively flat volume-weighted average price (VWAP; re...
Morning Briefing for April 13th: Market Taking a Breather
We can see that the 1185 area in the ES futures (above) acted as resistance last week and now is offering a measure of support after this mo...
ETF Pairs as Sentiment Gauges: XLY and XLP
Let's think through the relative strength relationship between Consumer Discretionary (XLY) stocks and Consumer Staples (XLP) shares. W...
Life Insights From Great Inventors
* "Opportunity is missed by most people because it is dressed in overalls and looks like work." - Thomas Edison. * "The sci...
Continued Bullish Sentiment: The CBOE Equity Put-Call Ratio
We are seeing unusual levels of bullish sentiment in the CBOE equity put-call ratio, with the lowest level of put buying relative to call pu...
Midday Briefing for April 12th: Slow Range Trade
We're looking at roughly a five-point intraday range in the S&P 500 e-mini (ES) futures, as slow volume contributes to a range trade...
Low Volume Bull Market: What to Make of It
One of the points I made in the recent indicator review concerned the relative absence of selling pressure in the stock market. Even on dow...
Indicator Update for April 12th
Last week's indicator review found that we remained in a bullish trending mode, but that yellow signals were beginning to flash, indica...
Reflections on the Kent State University Program in Financial Engineering: Investing in Your Career
I had the pleasure today of talking with graduate students from the Kent State University master's of science program in financial engin...
The Risk Rally Continues
On the heels of news of a bailout program for Greece , the euro has rallied very sharply against the U.S. dollar (top chart), putting in a m...
Sunday Morning Views and Reviews
* Making use of trading journals to identify and change problem patterns in trading ; * Using the body to regulate emotional responses ; *...
Vicarious Trauma and Personal Identity
Sometimes therapists exposed to the emotional traumas of their clients experience vicarious traumatization : they can become overwhelmed by...
Kicking Off the Weekend With Fresh Views
* How personal, problem patterns tend to cycle ; * Approaching your trading business as an entrepreneur ; * Excellent 10-year look at whe...
A Look at Price Changes During Day and Overnight Sessions in the Stock Market
It is natural to think of the day session in the S&P 500 Index (SPY) as an extension of overnight trading both in stock index futures an...
An Intraday Look at a Momentum Measure
This display from Barchart gives a five-minute perspective over the past three days, tracking the percentage of stocks trading above their ...
Midday Briefing for April 9th: Back in the Range
After making a marginal new high in mid-morning trade, we've returned back into the trading range, returning toward VWAP. Sector perfor...
Notes on Trading a Range Market
We've seen some decent moves this morning, but note the importance of catching day structure early in the session. By making the call o...
Tracking Market Strength With Moving Average Indicators
A useful display in the Barchart site charts the percentage of stocks trading above their 20 day moving averages (top chart) and above their...
Morning Briefing for April 9th: Near the Highs
8:56 AM CT - I've added the top Market Delta chart to show how we built volume between 1185 and 1187 in the ES futures, only to fail at...
Reflections on Dr. Brett's Blow Up
I've worked hard over the years on my trading, developing ideas, indicators, and ways of looking at markets. And making some money. To...
Keeping Your Eye on the Ideal
As I stressed in an important earlier post , great traders creates bridges between the real and the ideal: from where they stand now to whe...
Midday Briefing for April 8th: Bounce
Notice how we rejected the early lows today when we dipped below yesterday's lows and now have moved above the overnight highs, back int...
Morning Briefing for April 8th: Risk Aversion
Continued concerns over Greece have renewed pressure on the euro, and we can see that stocks have moved back into the top of a multiday tra...
Imagery, Visualization, and Anchoring: Building Positive Trading Behaviors
My recent post outlined important steps to take in raising one's trading size. This is one area where imagery exercises can be especia...
Growing Your Trading Size: How to Take More Risk
A developing trader recently asked me one of the most common--and important--questions that I encounter: How do I become comfortable growin...
