tightstops
Active member
- Messages
- 245
- Likes
- 19
this site has turned into such a toxic piece of **** i defy anyone to read here for more than half an hour an not feel like a miserable cnt
InTheMoneyStocks Market Analysis
- Thread starter InTheMoneyStocks
- Start date
- Watchers 167
virtuos0
Well-known member
- Messages
- 423
- Likes
- 117
It's about average I guess, but regardless my girlfriend must be ok with it as she is marrying me soon!
The reason I'm belittling Mr InTheMoneyStocks is that he has no business giving advice, or selling a product. It's healthy therefore to point out to other members that he knows absolutely zilch about trading, just in case they find themselves taken in by it.
See, I'm Robin Hood.
If you find any other of my posts to be 'toxic' there is an ignore option somewhere, so feel free to ignore me.
InTheMoneyStocks
Experienced member
- Messages
- 1,236
- Likes
- 17
Trade lesson: Learn the relative strength of a stock
Often when a stock cannot catch a bid or rally higher with the major indexes it is signaling weak relative strength. Stocks that have or signal weak relative strength compared to the market are good candidates to be sold short on bounces. For example, FSLR the leading solar stock has not been able to rally with the NSADAQ or the other major indexes. These are the kind of stocks that you can watch for small bounces and take short positions. Remember it is prudent to always use stops as stocks can do anything at anytime.
Often when a stock cannot catch a bid or rally higher with the major indexes it is signaling weak relative strength. Stocks that have or signal weak relative strength compared to the market are good candidates to be sold short on bounces. For example, FSLR the leading solar stock has not been able to rally with the NSADAQ or the other major indexes. These are the kind of stocks that you can watch for small bounces and take short positions. Remember it is prudent to always use stops as stocks can do anything at anytime.
InTheMoneyStocks
Experienced member
- Messages
- 1,236
- Likes
- 17
How to trade the best double bottom patterns
One of the most common and best patterns is the double bottom pattern. This is simply when the market seems to retest a low and then bounces higher off the low level. It is important to watch for the double bottom low to pierce the prior low before reversing back higher. This is because market makers are looking to bait in momentum short traders and then come in and rip it against them. Once they are forced to cover their short trade by buying back the stock it creates extra momentum to the upside and therefore pushes the stock even higher. The best double bottoms usually have prior support levels on the chart. In the example below you can see the prior support on CAT at the 54.25 area on October13th-15th. This is signaling that CAT should have good support at this level. Remember as traders we are always looking to increase the odds and make the trade more favorable. Please understand it is always prudent to use stops and good money management in any trade.
One of the most common and best patterns is the double bottom pattern. This is simply when the market seems to retest a low and then bounces higher off the low level. It is important to watch for the double bottom low to pierce the prior low before reversing back higher. This is because market makers are looking to bait in momentum short traders and then come in and rip it against them. Once they are forced to cover their short trade by buying back the stock it creates extra momentum to the upside and therefore pushes the stock even higher. The best double bottoms usually have prior support levels on the chart. In the example below you can see the prior support on CAT at the 54.25 area on October13th-15th. This is signaling that CAT should have good support at this level. Remember as traders we are always looking to increase the odds and make the trade more favorable. Please understand it is always prudent to use stops and good money management in any trade.
Hi Inthemoneystocks -
I am new to the forum and planning to make a journal about trading the E-mini S&P 500 (which recently CAT has acted very similar too); I'm new to trading aswell but i know quite a lot of the basics and am no longer naive to the markets.
How would you go about playing these double bottoms?
Would you place a limit order on the previous support ? The problem being that price may not form a double-bottom or do you wait for a fully formed one and play the breakout?
Its also because market makers want to execute the stop orders below recent swing lows, not just to get an introduction of momentum players.
I've been wondering something, i wonder if you can help -
Why do market makers want to chase stop orders?
Surely if a bunch of stop orders to SELL are hit, this will create supply and push the markets down ?
Alternatively, once these orders are executed, there are no more sellers left and that creates the potential for further future (because everyone is out their longs) demand?
Could you explain that in a bit more detail please.
I am new to the forum and planning to make a journal about trading the E-mini S&P 500 (which recently CAT has acted very similar too); I'm new to trading aswell but i know quite a lot of the basics and am no longer naive to the markets.
How would you go about playing these double bottoms?
Would you place a limit order on the previous support ? The problem being that price may not form a double-bottom or do you wait for a fully formed one and play the breakout?
Its also because market makers want to execute the stop orders below recent swing lows, not just to get an introduction of momentum players.
I've been wondering something, i wonder if you can help -
Why do market makers want to chase stop orders?
Surely if a bunch of stop orders to SELL are hit, this will create supply and push the markets down ?
Alternatively, once these orders are executed, there are no more sellers left and that creates the potential for further future (because everyone is out their longs) demand?
Could you explain that in a bit more detail please.
the best thread for this type of trading, especially on ES and the other eminis is anekdoten's over at elitetrader: http://www.elitetrader.com/vb/showthread.php?s=&threadid=99283&perpage=6&pagenumber=1
How to trade the best double bottom patterns
I've learned the most extensive definition from various experts in the field regarding double bottom patterns last night.
According to Schabacker, the double bottom is a "much misunderstood formation." John Murphy, MaGee & Edwards also said so. Many investors assume that, because the double bottom is such a common pattern, it is consistently reliable. This is not the case. Bulkowski estimates the double bottom has a failure rate of 64%, which he terms surprisingly high. If an investor waits for a valid breakout, however, the failure rate declines to 3%.
A double bottom occurs when prices form two distinct lows on a chart. A double bottom is only complete, however, when prices rise above the high end of the point that formed the second low.
The double bottom is a reversal pattern of a downward trend in a stock's price. The double bottom marks a downtrend in the process of becoming an uptrend.
Murphy cautions the terms "double tops and bottoms" are greatly overused in the markets. Most of the patterns referred to as double bottoms are, in fact, something else. Because of this, Murphy advises investors to make their investment decisions only after prices have broken through the confirmation point, completing the reversal pattern. Watching the volume throughout the development of the pattern can help determine whether the pattern is a valid double bottom.
This is my favourite part: Bulkowski offers advice for both short-term and long-term investors. Because only approximately 68% of double bottoms meet their price targets, he advises short-term investors to be ready to take profits as price nears the target. In other words, sell as prices get close to the target.
http://www.trending123.com/patterns/double_bottom.html
One of the most common and best patterns is the double bottom pattern. This is simply when the market seems to retest a low and then bounces higher off the low level. It is important to watch for the double bottom low to pierce the prior low before reversing back higher. This is because market makers are looking to bait in momentum short traders and then come in and rip it against them. Once they are forced to cover their short trade by buying back the stock it creates extra momentum to the upside and therefore pushes the stock even higher. The best double bottoms usually have prior support levels on the chart. In the example below you can see the prior support on CAT at the 54.25 area on October13th-15th. This is signaling that CAT should have good support at this level. Remember as traders we are always looking to increase the odds and make the trade more favorable. Please understand it is always prudent to use stops and good money management in any trade.
This is the full article:
I've learned the most extensive definition from various experts in the field regarding double bottom patterns last night.
According to Schabacker, the double bottom is a "much misunderstood formation." John Murphy, MaGee & Edwards also said so. Many investors assume that, because the double bottom is such a common pattern, it is consistently reliable. This is not the case. Bulkowski estimates the double bottom has a failure rate of 64%, which he terms surprisingly high. If an investor waits for a valid breakout, however, the failure rate declines to 3%.
A double bottom occurs when prices form two distinct lows on a chart. A double bottom is only complete, however, when prices rise above the high end of the point that formed the second low.
The double bottom is a reversal pattern of a downward trend in a stock's price. The double bottom marks a downtrend in the process of becoming an uptrend.
Murphy cautions the terms "double tops and bottoms" are greatly overused in the markets. Most of the patterns referred to as double bottoms are, in fact, something else. Because of this, Murphy advises investors to make their investment decisions only after prices have broken through the confirmation point, completing the reversal pattern. Watching the volume throughout the development of the pattern can help determine whether the pattern is a valid double bottom.
This is my favourite part: Bulkowski offers advice for both short-term and long-term investors. Because only approximately 68% of double bottoms meet their price targets, he advises short-term investors to be ready to take profits as price nears the target. In other words, sell as prices get close to the target.
http://www.trending123.com/patterns/double_bottom.html
InTheMoneyStocks
Experienced member
- Messages
- 1,236
- Likes
- 17
Could the market be talking to us ?
The VIX (CBOE VOLATILITY INDEX) has put in a very nice bottoming tail on the 60 minute chart. This tail was on heavy volume and could be signaling further upside to the VIX. Often the VIX rises when there is fear in the market or when traders want to hedge their long positions. In any case keep an eye on the VIX.
The VIX (CBOE VOLATILITY INDEX) has put in a very nice bottoming tail on the 60 minute chart. This tail was on heavy volume and could be signaling further upside to the VIX. Often the VIX rises when there is fear in the market or when traders want to hedge their long positions. In any case keep an eye on the VIX.
InTheMoneyStocks
Experienced member
- Messages
- 1,236
- Likes
- 17
U.s. Dollar: How low will it go?
The U.S. Dollar index has broken down again after the Fed Chairman Ben Bernanke's speech. The DXY is now at new lows for the day and for the year. The market obviously does not believe the Treasury or the Federal Reserve Banks's tough talk on a strong dollar policy.
The U.S. Dollar index has broken down again after the Fed Chairman Ben Bernanke's speech. The DXY is now at new lows for the day and for the year. The market obviously does not believe the Treasury or the Federal Reserve Banks's tough talk on a strong dollar policy.
salvadorveiga
Active member
- Messages
- 228
- Likes
- 5
hmm interestingly, EURUSD, GBPUSD and other pairs haven't confirmed this low... so we have some bearish divergence here,... i think ultimately the dollar is very close to start a big rally... that is my perspective for mid-long term.
Of course that doesn't put me in the wrong side of the trade since currently i'm short USD 😀 gotta follow the price... but ithink we may go for a big rally.
Of course that doesn't put me in the wrong side of the trade since currently i'm short USD 😀 gotta follow the price... but ithink we may go for a big rally.
trader_dante
Veteren member
- Messages
- 4,535
- Likes
- 1,538
Its nearly time for a Dollar rally.
Need some more bears.
Watch for media headlines.
salvadorveiga
Active member
- Messages
- 228
- Likes
- 5
ive been watching... for the past month has been so much negativity towards the dollar... especially the daily sentiment index.. only 2-3% of traders believe the dollar will go up, which is an historic extreme....
The S&P back in march was sitting at 2% bulls adn we all know how the story ended 😀
The S&P back in march was sitting at 2% bulls adn we all know how the story ended 😀
MORGZTRADER
Junior member
- Messages
- 16
- Likes
- 0
hopefully back to $2 to £1 so my golfing holiday to florida is even cheaper :clap: :cheesy:
InTheMoneyStocks
Experienced member
- Messages
- 1,236
- Likes
- 17
Dollar falls at 3:00 pm getting the indexes green
The dollar has fallen giving the markets a lift in the final hour of the day. Watch these levels on the dollar.
The dollar has fallen giving the markets a lift in the final hour of the day. Watch these levels on the dollar.
InTheMoneyStocks
Experienced member
- Messages
- 1,236
- Likes
- 17
Dollar Utilized As Market Tool To Control Ups And Downs...Smart....But For How Long W
The markets gapped higher today on the back of yet another weak dollar day. The dollar is at its 52 week lows again and looking like it may wan to break lower. This tells us the markets will be up due to the inverse relationship that the dollar has with the markets. Why is there an inverse relationship? Basically it is the the reinflation rally syndrome. As the dollar falls, commodities rise to keep their par value. As they rise, stocks that are based off commodities like gold stocks, oil stocks and such, rise as well. In the S&P 500, these are approximately 20% of the index. Therefore they have a huge weight on the overall index. The reinflation rally is and can be utilized by those in government to prop the markets up and keep them up. Just think, the Federal Reserve just needs to keep pressure on the dollar each day by a slight amount and in theory this market will never fall. Granted, that is in theory and of course reality with be different at some point in time. The problem with a reinflation rally is this. When you hit the dollar it makes each Americans net worth less. Meaning, when the dollar falls by 10%, each citizen is now worth 10% less (buying power). In addition, commodity prices go higher which adds even more pressure to someones wallet as it works just like a tax. Enjoy the ride and thank the Federal Reserve and government. The key level we are hitting now intra day is the SPY $111.15 level. That is not a strong level and very likely will be broken. The big level above that is $111.50. Watch that closely!
The markets gapped higher today on the back of yet another weak dollar day. The dollar is at its 52 week lows again and looking like it may wan to break lower. This tells us the markets will be up due to the inverse relationship that the dollar has with the markets. Why is there an inverse relationship? Basically it is the the reinflation rally syndrome. As the dollar falls, commodities rise to keep their par value. As they rise, stocks that are based off commodities like gold stocks, oil stocks and such, rise as well. In the S&P 500, these are approximately 20% of the index. Therefore they have a huge weight on the overall index. The reinflation rally is and can be utilized by those in government to prop the markets up and keep them up. Just think, the Federal Reserve just needs to keep pressure on the dollar each day by a slight amount and in theory this market will never fall. Granted, that is in theory and of course reality with be different at some point in time. The problem with a reinflation rally is this. When you hit the dollar it makes each Americans net worth less. Meaning, when the dollar falls by 10%, each citizen is now worth 10% less (buying power). In addition, commodity prices go higher which adds even more pressure to someones wallet as it works just like a tax. Enjoy the ride and thank the Federal Reserve and government. The key level we are hitting now intra day is the SPY $111.15 level. That is not a strong level and very likely will be broken. The big level above that is $111.50. Watch that closely!
InTheMoneyStocks
Experienced member
- Messages
- 1,236
- Likes
- 17
The Keys To The Market Are Right In Front Of You...
The markets opened flat on the day after the ADP jobs number came in slightly worse than expected yet still showed a constant small improvement month after month. News means nothing. Why? Well because the dollar is king right now. As we have said day after day just keep your eye on the dollar and it will show you everything. After the open, the dollar slowly sank down; this gave the markets a solid push higher taking us to new 52 week highs on the SPY at $112.01. This was a great number for a few reasons. First it was an even number play (part of the InTheMoneyStocks methodology). This tells our subscribers how and why to short that. Second, before any subscriber looks to go long they must first look for confirmation. That did not happen. So two signals here told our premium members and traders to look for a pull back. All of a sudden the markets started to tank. Coincidence? We think not as the methodology continues to be the best out there. Why are the markets falling back to the flat line on the day? Simply put, the dollar has caught a solid bid. For those of you with InTheMoneyStocks, you know the support level double bottom on the dollar got tagged yesterday and is holding today. Another reason to expect a pop on the dollar and a near term intra day pull back on the markets. The methodology is simple yet amazing. Enjoy folks.
The markets opened flat on the day after the ADP jobs number came in slightly worse than expected yet still showed a constant small improvement month after month. News means nothing. Why? Well because the dollar is king right now. As we have said day after day just keep your eye on the dollar and it will show you everything. After the open, the dollar slowly sank down; this gave the markets a solid push higher taking us to new 52 week highs on the SPY at $112.01. This was a great number for a few reasons. First it was an even number play (part of the InTheMoneyStocks methodology). This tells our subscribers how and why to short that. Second, before any subscriber looks to go long they must first look for confirmation. That did not happen. So two signals here told our premium members and traders to look for a pull back. All of a sudden the markets started to tank. Coincidence? We think not as the methodology continues to be the best out there. Why are the markets falling back to the flat line on the day? Simply put, the dollar has caught a solid bid. For those of you with InTheMoneyStocks, you know the support level double bottom on the dollar got tagged yesterday and is holding today. Another reason to expect a pop on the dollar and a near term intra day pull back on the markets. The methodology is simple yet amazing. Enjoy folks.
