Originally posted on atoast2trading:
Todays price action at the close reminded me of something from the Market Wizards interview with Paul Tudor Jones: “One thing I learned as a floor trader was that if, for example, the old high was at 56.80, there are probably going to be a lot of buy stops at…

BI used the market delta zig zag tool and I found 525 instances of swing being more than 2% since 2006. The % figure was decided by myself by looking at the chart to see swings that would occur during many weeks. I was looking for something that would help estimate the length of swings…

A basic visualization of CBOT SPX Put/Call ratios vs avg of following 5 days price change on ES over 3 years. This is built from a free software called Qliksense with data from Quandl. A chart of all values: Focusing on area between 2.0 and 2.8 (below 2.0 the avg change is almost meaningless, above…

This post has a little more information than usual. I read so much doom this weekend about the impending rate hike and the effects it will have on emerging market currencies. There are anticipated knock on effect of those countries having to sell US Treasuries to stabilize their FX markets. Some people are expecting bonds…

50 on Markets “Don’t count on Graham and Dodd to make you a fortune, everybody in the market knows the theory, ever wonder why fund managers can’t beat the S&P 500? ‘Cause they’re sheep and the sheep get slaughtered. I been in the business since ’69. Most of these high paid MBAs from Harvard never…

Some wild moves the week before last, a lot calmer this week creating some nice trading opportunities. Next Thursday is the E-mini Contract roll http://www.cmegroup.com/trading/equity-index/rolldates.html. This is typically a difficult week to trade. As I have been saying I expect more selling into this as is normal when participants sell the expiring month and buy…

For another week COT data is tough to analyse as you don’t know exactly what happened later in the week but you have to infer with ETF fund flows and advancing volume. (SPY didnt sell much earlier in the week and was a gainer on the week including Thursdays data – have to wonder how…

Ideas early today: Another day with 3 million plus traded. Test for sellers and rejection of multiple previous range (cant say was low volume). Buyers in control for now and wanted to buy at lower prices. Template of end of 2014 – some gap fill areas were enough to stop the slide. Delta was -50k…