IdealTradingLifeStyle.com

Versatile Trading Strategies

admin — Fri, 04 May 2012 21:37:37 +0000

It takes market experience to manage trading in uncertain times. When markets are flat they are usually indicating a change is forth coming. It is important to adhere to a trading strategy that involves reduced profits and tighter stop-losses. This way if the market looks to break to the upside you are able to take advantage of the upward moves and if the market breaks to the down-side, you are able to execute on stops with minimal impact to your over-all portfolio.

Most investors know only one strategy and they apply it to all markets. There are times to be all in and holding longer, in the bullish conditions. To be conservative with smaller positions and tighter sells/stop-losses, in flat to slightly declining markets. Or, to be sidelined in steep declines looking for a solid confirmation of support before going long.

Another aspect of trading is to determine when to go long or when to short positions. Here “Inverse ETFs” can provide excellent returns in declining markets and are easier to trend as they reflect a sector/index rather than an individual stock. For example, choosing “QID” (Proshares Ultra-short ETF DOW) is an excellent choice when the DOW is confirming a declining trend and has closed below a significant supporting trend/channel.

It takes seasoned market experience and lessons learned to develop versatile trading strategies. It takes time to build these strategies and test them ensuring they apply to the various market types. Most Investors will struggle at various market times unless they either adopt proven strategies or have been able to develop themselves over time.

InvestorsEye: Stocks Close Lower on Global Concerns

admin — Sun, 15 Apr 2012 22:22:28 +0000

Stocks moved sharply lower over the course of the trading day on Friday, giving back some ground after posting strong gains in the two previous sessions. Renewed concerns about corporate earnings and the global economy contributed to the weakness in the markets. The major averages saw further downside going into the close, ending the session near their worst levels of the day. The Dow slid 136.99 points or 1.1 percent to 12,849.59, the Nasdaq tumbled 44.22 points or 1.5 percent to 3,011.33 and the S&P 500 fell 17.31 points or 1.3 percent to 1,370.26. With the losses on the day and the sell-off seen earlier in the week, the major averages all posted weekly losses. The Dow fell by 1.6 percent, while the Nasdaq and the S&P 500 dropped by 2.2 percent and 2 percent, respectively. The pullback on Wall Street on Friday was partly due to disappointing economic news out of China, the world’s second largest economy behind the U.S.

InvestorsEye: Markets Look to Trade Lower on Weak US Jobless Report

admin — Mon, 09 Apr 2012 13:01:17 +0000

The major U.S. index futures are pointing to a lower opening on Thursday, with futures paring back their losses after the release of the U.S. jobless claims report, which showed that claims fell to their lowest level in about four years. Commodities are rebounding after the sell-off seen in the previous two sessions. Given the apprehensions concerning the course of the economy, especially ahead of tomorrow’s non-farm payrolls data, some consolidation around current levels is the most likely outcome.

U.S. stocks ended Wednesday’s session sharply lower, as economic fears spooked the overbought markets. The major averages opened lower as the previous session’s negative sentiment generated by fading stimulus hopes lingered and a Spanish debt auction received a lukewarm response. Thereafter, the averages declined steadily till late morning trading before moving sideways. Although the indexes pared some of their losses in the afternoon, they ended notably lower.

The Dow Industrials ended down 124.80 points or 0.95 percent at 13,075 and the S&P 500 Index closed 14.42 points or 1.02 percent lower at 1,399, while the Nasdaq Composite retreated 45.48 points or 1.46 percent before closing at 3,068.

Technically, the markets are looking to break below the supporting trend-line for the first time since mid-December 2011 with a strong Declining momentum providing advanced warning that markets are going lower.

investorseye@gmail.com

InvestorsEye: Markets Close Mixed as Bulls Retreat

admin — Thu, 05 Apr 2012 21:28:28 +0000

Stocks showed a lack of direction throughout the trading day on Thursday, with some traders looking to get a head start on the long weekend. Uncertainty about Friday’s monthly employment report also contributed to the choppy trading.

The major averages bounced back and forth across the unchanged line, eventually ending the session mixed. While the Nasdaq rose 12.41 points or 0.4 percent to 3,080.50, the Dow edged down 14.61 points or 0.1 percent to 13,060.14 and the S&P 500 slipped 0.88 points or 0.1 percent to 1,398.08.

Meanwhile, the major averages all moved lower for the holiday-shortened week. The Dow fell by 1.1 percent, while the Nasdaq and the S&P 500 dropped by 0.4 percent and 0.7 percent, respectively.

The lackluster performance on Wall Street came as many traders stayed on the sidelines ahead of the release of the Labor Department’s March jobs report on Friday.

Technically, the S&P is at trend support and the momentum is under-crossed and below support for the first time since Aug 2011. This is a strong indication of a declining market and a need to confirm support.

investorseye@gmail.com

InvestorsEye- Markets Close Below Momentum Trendline Support

admin — Wed, 04 Apr 2012 21:26:09 +0000

Stocks saw considerable weakness during trading on Wednesday, extending the downward move seen in the previous session. The sell-off reflected continued disappointment with the minutes of the latest Federal Reserve meeting as well as lingering concerns about the global economy.

The major averages ended the session well off their worst levels of the day but still closed firmly in the red. The Dow fell 124.80 points or 1 percent to 13,074.75, the Nasdaq plunged 45.48 points or 1.5 percent to 3,068.09 and the S&P 500 dropped 14.42 points or 1 percent to 1,398.96. The weakness on Wall Street came as traders continued to react to the minutes of the latest Fed meeting, which seemed to indicate that the central bank is not likely to engage in any further quantitative easing.

Technically, the S&P momentum has closed below a trend line that has been in place since Aug 2011 and this is a strong indicator of further declines as these markets struggle after realizing such a strong rally.

investorseye@gmail.com

InvestorsEye: Markets Pause on Fed Minutes

admin — Tue, 03 Apr 2012 21:15:49 +0000

Stocks moved mostly lower over the course of the trading day on Tuesday, with considerable selling pressure emerging in afternoon trading following the release of the minutes of the Federal Reserve’s latest monetary policy meeting. The major averages climbed well off their worst levels going into the close but still ended the day in the red. The Dow fell 64.94 points or 0.5 percent to 13,199.55, the Nasdaq edged down 6.13 points or 0.2 percent to 3,113.57 and the S&P 500 slid 5.73 points or 0.4 percent to 1,413.31. The pullback seen in afternoon trading came as the minutes of the Fed’s March meeting seemed to indicate that the members were less willing to initiate another round of quantitative easing amid signs of improvement in the U.S. economy. Technically, markets are seeing resistance at new 52-week high trends and look to confirm support before trending upward again. These pauses in the market are key indicators used in determining the beginnings of a market pullback. Need to see the S&P confirm support at current levels.

investorseye@gmail.com

InvestorsEye: Markets Show Strength on Upbeat Manufacturing Data

admin — Mon, 02 Apr 2012 21:33:24 +0000

Upbeat Manufacturing data from the US and Germany squashed a lack luster trading day and saw the S&P closing at a new 52 week high.

Technically, markets are trading in a very narrow range and as these lines converge we will see a breakout to either the up-side or the downside. We are still cautious as all indicators are still over-bought and the market has yet to see any kind of a pull-back since mid-December. Still, we are bullish with tighter stops and sells going forward until the market provides any indications of which way the breakout is going to be.

investorseye@gmail.com

InvestorsEye: Markets Close Higher Confirming Support

admin — Fri, 30 Mar 2012 23:34:26 +0000

US Consumer Spending rose sending markets higher globally and confirming support.

Technically, markets found support at current levels and look to regain momentum still having to confirm at volatile levels. We are expecting a pullback but nothing that will have a serious impact on the markets, mainly to realign indicators and allow for some profit-taking. Probably 3-5% drop, unless negative news hits the markets and changes overall market sentiment.

InvestorsEye- Higher Consumer Spending Supports Markets

admin — Fri, 30 Mar 2012 13:25:16 +0000

Markets are teetering on rally support at current levels and strong US spending data supports futures rising on the last day of the quarter.

Technically, markets are losing momentum and volume is thinning at current levels with stocks looking to rise after 3 days of decline. Look to tighter sell targets at trend/channel resistance levels and recommend not carring posiitons for an extended length at present.

investorseye@gmail.com

InvestorsEye: Markets Shrug-off Earlier Losses Closing Slightly Lower

admin — Thu, 29 Mar 2012 23:45:18 +0000

Markets were able to minimize losses closing slightly lower in North America, while European stocks hit a 3-week low.

Technically, the S&P is now in an under-crossed Declining Bullish momentum and needs to confirm support at current levels if a rally is to continue. With the VIX looking to to confirm support and trending with a Rising Bearish momentum, it is likely to see markets trending lower. Supported by weaker than expected GDP and Unemployment data Investors are becoming quite skeptical that this rally can continue.

investorseye@gmail.com