tale of the tape

This post is a bit disjointed but it is a description of what happened yesterday and some current thoughts I have. This is what I observed yesterday: I used to sometimes look at my charts at the start of the day and know I missed a huge move in the Asian and early European sessions.…

review 10/25-10-26

I did not trade much yesterday – I spent the day playing Battlefield 3 keeping an eye on the market. Yesterdays market action was a classic buy the rumour sell the news, or so it seemed. The V shaped pattern formed after a pre-market run up on news: “German Bundestag passes EFSF motion with large…

pullback to VWAP

A good article via smbtraining: Now… how to use VWAP. First of all, I dont make any mechanical trades off of VWAP, but one I think you can make (haven’t really run the numbers to prove it) is to buy the first retracement to VWAP after a strongly trending stock makes a new high of…

you got to know when to hold em

You got to know when to hold ’em, know when to fold ’em, Know when to walk away, know when to run. You never count your money when you’re sittin’ at the table, There’ll be time enough for countin’ when the dealin’s done. Lyrics from Kenny Rogers “The Gambler” This means you do the right…

trading mantras

Broken support becomes resistance, resistance becomes support. Don’t be the guy long at the top or short at the bottom. If you missed the move then you missed it – forget it and don’t chase. Wait for setups. Questions to ask before making a trade: “what is the market doing, what is the market trying…

fair value and program trading

The “cash market” is the same as the SPX inasmuch as the SPX represents the index for the S&P500. You can’t actually buy the SPX because it’s an index. The SPX will usually trade a few points above the ES because of a concept called “cost of carry.” This, in simple terms, is what it…