InTheMoneyStocks Market Analysis

[InTheMoneyStocks]

Trade lesson: Never fall in love with a stock

Many times traders fall in love with stocks. They feel as if they actually are a part of a club or organization. This is very far from the truth. The traders motto is 'stocks are for trading not loving'. Do any of the CEO's now the small share holder? The answer is simply no. Instead traders want to take advantage of the price action of a stock by using the chart.

For example, look how INTC traded higher on earnings and faded right from the gap higher. This is telling you that traders do not believe INTC should be at that price are are taking profits or selling short. This is a way the market talks to us. Then on 10.22.09 INTC hits the 60 minute 200 moving average and gets a sharp 1 point bounce. Then on 10.30.09 INTC makes a double bottom pattern and has a nice quick bounce. There are endless opportunities when you understand to read the charts. Remember stocks are not for loving just trading. It is critical to always use stops and to move your stop in the money to secure profits.

 

[InTheMoneyStocks]

The easy way to find a runner

This morning there was news out in the premarket that Warren Buffet's firm Birkshire Hathaway was going to buy Burlington Northern(BNI) for a $25 dollar premium above the previous day's closing share price. BNI is a leading stock in the railroad and transportation industry. This should cause a rally in the entire transportation sector. Therefore, as a trader you can look for sympathy stocks that are leaders in the transportation sector regardless if they are railroad stocks. Yes, railroad stocks will rally as well, however, they may already be trading higher by the time the public gets the news. Therefore, stocks such as FDX, or UPS, are candidates for a move higher on the back of freight and cargo movers that use air travel. Often less popular names will run as well, however, the higher percentage play is with a leading stock.

 

[jaspertrademaster]

nice.

 

[forexpeters]

what a runner ?

 

[InTheMoneyStocks]

A runner; fast moving stock that earns mucho dinero in a relatively quick time frame. Mostly geared towards scalp, intra day trading.

 

[InTheMoneyStocks]

Trade lesson: Knowing the trading environment to profit intra-day

It is very important to understand the current trading environment. If you were a construction worker or a landscaper it is safe to say that you may check the weather outside before going to work. Therefore, as a trader it is important to know what the pulse of the market is. One simple way to do this is to follow the U.S Dollar. When ever you see the dollar lower it will generally give and upside bias to all commodity and inflationary stocks. For example, if the dollar is lower it is important to look at stocks such as Potash(POT). POT is a leading agriculture stock and very inflationary. In this case a weak U.S. Dollar would be beneficial to agriculture stocks.

Simply put, it is important to know the trading environment to start the day.

 

[virtuos0]

I like POT

 

[InTheMoneyStocks]

Using moving averages on multiple time frames

It is important to use multiple time frames in order to find the best support/resistance levels. Often what looks to be a bullish level on a smaller time frame may not necessarily be a bullish pattern on the larger time frame. The same theory holds true for moving averages on different time frames.

For example, the SPY today was putting in a bullish pattern on the 5 and 10 minute charts. However, IntheMoneyStocks.com traders identified the 200 moving average on the 60 minute chart as resistance. The SPY seemed to halt right at the 60 minute 200 moving average and begin a small pullback from that level. Intra-day this was a very nice pullback. Use the moving averages on multiple time frames to capitalize intra day.

 

[Black Swan]

It is important to use multiple time frames in order to find the best support/resistance levels. Often what looks to be a bullish level on a smaller time frame may not necessarily be a bullish pattern on the larger time frame. The same theory holds true for moving averages on different time frames.

Wow, no 5hit Sherlock...thanks for this...:whistling

 

[subarashi]

It is important to use multiple time frames in order to find the best support/resistance levels. Often what looks to be a bullish level on a smaller time frame may not necessarily be a bullish pattern on the larger time frame. The same theory holds true for moving averages on different time frames.

For example, the SPY today was putting in a bullish pattern on the 5 and 10 minute charts. However, IntheMoneyStocks.com traders identified the 200 moving average on the 60 minute chart as resistance. The SPY seemed to halt right at the 60 minute 200 moving average and begin a small pullback from that level. Intra-day this was a very nice pullback. Use the moving averages on multiple time frames to capitalize intra day.

I use Guppy moving averages which track 2 groups of traders; short term and long term traders. Consider each moving average as a poll concerning the feelings of those traders about a particular security. When you have agreement averages run in parallel but disagrement about the value of a security causes averages to diverge or contract.

 

[InTheMoneyStocks]

Is the 'friday effect' in play today?

For nearly nine months the market averted big declines on Friday's by usually finishing flat or slightly negative or positive for the day. However, the past two weeks we have seen major selloffs in the markets on Friday's with very high volume. Therefore, it is prudent to remain cautious today as the market has recovered from the premarket lows.

 

[virtuos0]

It's NFP's you simpleton! Friday effect.. whatever next.

 

[robster970]

Analysis my trading record, I seem to have a tuesday effect in play.

What can this mean Mystic Meg?

 

[N Rothschild]

rofl classic

 

[GladiatorX]

Analysis my trading record, I seem to have a tuesday effect in play.

What can this mean Mystic Meg?

That co-incides with the day; common food retailer - Mcdonalds (MCD) show there highest sales... Meaning on Tuesday; the majority of traders are on a fatty diet and this could cause lower-energy and less concentration, meaning abnormal market behaviours (as per norm) and maybe this is the reason your trading isn't working out, perhaps, perhaps not, perhaps its something else, or perhaps after all MCD is the reason, or perhaps not.

 

[robster970]

That co-incides with the day; common food retailer - Mcdonalds (MCD) show there highest sales... Meaning on Tuesday; the majority of traders are on a fatty diet and this could cause lower-energy and less concentration, meaning abnormal market behaviours (as per norm) and maybe this is the reason your trading isn't working out, perhaps, perhaps not, perhaps its something else, or perhaps after all MCD is the reason, or perhaps not.

Yes - you're right, it must be my diet. Thanks for the advice - where do I send the cheque to? You should set yourself up as a trading mentor, you have the gift after all.

 

[GladiatorX]

Yes - you're right, it must be my diet. Thanks for the advice - where do I send the cheque to? You should set yourself up as a trading mentor, you have the gift after all.

Thats the sweetest thing anybody has ever said to me.

 

[robster970]

Thats the sweetest thing anybody has ever said to me.

What - where do I send the cheque!

 

[fayalac]

Friday effect?..., thats a new one!.

 

[tightstops]

It's NFP's you simpleton! Friday effect.. whatever next.

fm how small is your dick, every time i read something youve written youre belittling someone or insinuating youre the best trader since sliced fcking bread wind your neck in will you