Noise Increase

If we look at the S&P 500 yearly charts, we can see price is around the highs of last year and earlier this year. This will always be considered a sticking point for price due to reversal levels and congestion from the past.

SPX Yearly Aug 3 2020

If you were on yesterdays webinar, you will know we have been in a resting phase of the market and also the reason why we are in that phase. We need to (more…)

Continue Reading Noise Increase

Sensible Driver Ahead

Get ready for the week ahead. It will be an interesting one. Earnings accompanied by the Fed rate decision on Wednesday and a bunch of profit-taking to spice it all up.

Methods change

We are now officially in a sensible driver phase of the market so get ready for the rocky road ahead and watch for those support levels to hold.

Do not look to trade breakouts unless from a good base such as DB.

Pullbacks will (more…)

Continue Reading Sensible Driver Ahead

Volatility and Noise

Hi ,

S&P 1.3% away from turning positive and we have 156% of return.

Ignore the noise

The year started off where 2019 finished and we were enjoying the longest bull run in history, until the pandemic hit the market.

That’s when everything changed.

We have seen the fastest turnaround from the ATHs to a bear market.

Dynamic Traders turned bullish within 2 weeks of the lows being set and have since enjoyed plenty of buying opportunities, especially (more…)

Continue Reading Volatility and Noise

Most Valuable Car Company

Hi Dynamic Trader,

TSLA closed +3.7% yesterday giving the company a market value of about $208 bln.

Tesla

That is now more than TM (Toyota) which has a market value of about $202 bln.

From $350 to over a $1000 in less than 4 months. That is phenomenal. I imagine the hedge funds that were short this stock are probably very happy they exited their positions with the loss they had when they did.

Lets go (more…)

Continue Reading Most Valuable Car Company

Volume

Hi ,

One of the absolutely most useful indicators is volume.

Volume is the wind beneath the stocks wings

For stocks, volume shows the number of shares being traded.

So if stock ABC had 20 shares purchased and 10 shares sold on a particular day, the volume for that day would be 30.

In futures and options, the come represents the number of contracts being exchanged.

Adding volume to a chart and checking the levels and behaviour will provide a greater understanding of (more…)

Continue Reading Volume

S&P 500 Recorded Its Best Second-Quarter Performance Since 1938

Hi ,

Balanced

March 23 2020 was the low registered for the year so far and from there we have seen a nice recovery in the market. We started our bullish stance just 10 days from that low this year. The prior year the low was registered on Christmas Eve 2018 before the recovery began and we began our bullish stance just 6 days later in 2019.

Both times this was against what the majority of (more…)

Continue Reading S&P 500 Recorded Its Best Second-Quarter Performance Since 1938

Morning Update for Jun 25 2020

Hi ,

Yesterday the market had a pullback. At least for the moment, we can assume it is a pullback and nothing more.

These are generally good for continuations as long as they hold at or near support zones.

On a big one day pullback, it is often difficult to find opportunities compared to neat BuF or similar patterns the happen over time. As a result of the one day swing yesterday, we need to (more…)

Continue Reading Morning Update for Jun 25 2020

Herd Mentality

Hi Trader,

From one dog all dogs bark

Herd Mentality

As many of you will know, we have been long this market since April 7 2020.

During this period many traders were either short and losing money or looking for the markets to resume the decline so they can take shorts.

We have been taking long positions and continue to do so and now we can see the late comers are joining into this bull party.

It’s (more…)

Continue Reading Herd Mentality

Where Next for the Market?

Hello Dynamic Trader,

We have a day away from the markets as the UK and US are closed so expect low liquidity on FX today.

SPX 20200525

We continue to wait for the S&P to show its hand. Right now it is staying very close to the DVI so we have to apply patience.

We have a few new stocks on our list for the week ahead. This will be dependent on the market but we need (more…)

Continue Reading Where Next for the Market?

End of content

No more pages to load