leovirgo
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Ok, here I am starting a new thread to help newbies. It doesn't mean that I am not a newbie, I have a few years experience of learning how to trade. I had to learn the hard way. And I am not an expert, not yet, but I believe sharing is good. My online mentor Grey1 said .. "open the door and the door shall be opened to you in mysterious ways..". I will be posting how I trade, specifically on $INDU (ym futures) and US stocks. My 2cents to newbies is .. "Pay attention to broad market".
Today, for example, is 'No Buying day'. US congress voted down the rescue package. Many fund managers thought it had to be passed. It didn't and the market tanked.
Here is the set up and how it should be traded.
1. NYSE market breadth was bearish ( < -2000 ) since the opening. It means only one thing to me. It's not a buy day. If it is consistently bearish (red) the whole day, it is a good set up for shorting the dow.
2. NYSE Volumes were bearish too. (On buying days, it'll be blue colors or neutral colors.)
Regardless of the outcome to the vote, the market set up, to me, was to the downside. So we can sell the market at the red dots. Use any kind of method to sell the market today.
[ If the bailout had been passed, then we should see the rise in Market Breadth and NYSE Volume upticks. ]
Today, for example, is 'No Buying day'. US congress voted down the rescue package. Many fund managers thought it had to be passed. It didn't and the market tanked.
Here is the set up and how it should be traded.
1. NYSE market breadth was bearish ( < -2000 ) since the opening. It means only one thing to me. It's not a buy day. If it is consistently bearish (red) the whole day, it is a good set up for shorting the dow.
2. NYSE Volumes were bearish too. (On buying days, it'll be blue colors or neutral colors.)
Regardless of the outcome to the vote, the market set up, to me, was to the downside. So we can sell the market at the red dots. Use any kind of method to sell the market today.
[ If the bailout had been passed, then we should see the rise in Market Breadth and NYSE Volume upticks. ]