Chart Analysis On QQQQ And Crazy Special Effects
I have been reading a ton of babble on today's chart about how the volume on the buy side is thoroughly dire. That is really not accurate in regards to the Nasdaq.
Buy side volume has been rising into the upward move. If you regularly watch my videos you know that I absolutely fancy buy side volume rising into a upward move. That implies a greater and greater number of converts are switching over to the bullish side.
Another reason this is bullish not only for the Nasdaq but the entire stock market is because of sector rotation theory. Technology stocks are normally the first to guide the market out of a bear market.
Take a minute to think about why this is true. Where is the innovation coming from to cut costs to business? Technology. A greater number of corporations have picked up their use of email and decreased their use of standard postal mail to cut expenses. More companies are buying more computers to advertise for free over the Internet and save money on in-print marketing. Quicker copiers are being purchased with instant convert to pdf and email from copier capabilities. Indeed, slender and mean companies will a recession create and tech is the essential part which makes productivity and expense reduction achievable. That's why it makes sense that tech is the bull market leader coming out of a recession.
From a technical analysis angle you should not be stock trading in this market. You ought to be on the sidelines right now because no prevailing group, neither bulls nor bears, have emerged as the leader. At the end of June the bears kept the trend but all that changed in July. Over the last 2 weeks, the bulls have been so overbearing that they have annulled the downtrend and forced us into a cash and sidelines rating.
Even if we do get a pullback at this point, I wager we will have a higher low and a fresh trend channel can cultivate. Bear in mind, the majority of trend channels have lifespans that are much shorter than the current downtrend channel we have been in ever since April. In other words, this channel is beyond its life expectancy and we could have a new one form before long.
The way to play this market is to wait in cash and let the big boys fight this out for supremacy. You are a tiny fighter and do not want to get trapped between two attacking armies. Settle in the bush and let the armies fight it out. When one army, either bulls or bears, becomes dominant, then jump out of the bushes and attack on their side. Just place your bets on the winning side when a obvious dominance or trend has formed.
In Stock Trading News This Last Week And A Special Effects Video
It is official. The Stock Trading Master was out smarted by institutional traders. What happened? He got suckered in to shorting the stock market by the bearish Head and Shoulders top and the Burial Cross and then got nailed by bulls as the market reversed.
Worse, this is the Stock Trading Master's third loss in a row. That means that the stock trading law activates where Lance tells himself he needs to park himself on the sidelines for at least 1 week.
It's humorous. When you don't have a personal gamble in the stock market how transparent things end up being. You are not a bull looking at things from a positive predisposition, nor are you a bear looking at matters from a negative preconceived notion. You in fact own no partiality as none of your own money is at stake. So, your opinions end up being clear as you see the stock market for what it actually is.
Having a trading loss statute is so important that some believe the reality that institutional investors beat amateur traders simply because they have such a decree. When a gentleman at a trading desk has a succession of losses, the supervisor comes up and taps the stock trader on the shoulder. That means he's done for the trading session. No questions. No disagreeing. Once the tap comes, you turn off your trading workstation and go home.
In this video Lance actually breathes fire in fury over his three repeated losses. He then rips into himself and screams no more trading!
Article Source: FxTradingStock.com
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Hundreds of stock market videos and lessons. See more stock chart analysis vids like this stock market analysis
by: Daniel Huckabee
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Word Count: 757
Date: Wed, 28 Jul 2010
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