Friday, February 16, 2018

Thursday, February 15, 2018

Dealing with Current Market Conditions




Presented by Dr. Alex Elder on 2/8/18

In this 60-minute webinar, Dr. Elder will review current markets conditions – looking at the major indices. Are stocks finally in the value zone? Is the market still too depressed? Dr. Elder will give his personal insight and he'll even look at stocks requested by webinar participants.

Dr. Elder is the author of the world’s best-selling books on trading, including Trading for a Living. In the past, you could only find such classes in selected cities in the US and worldwide. Now you can learn right from your own home. Dr. Elder will be presenting:

The key ideas from his latest book The New Trading for a Living on planning trades, risk control, and learning from your own trades.

A review of the current markets, including those requested by webinar participants.

Dr. Elder will be using his newly upgraded Enhanced Trading Room add-on for MetaStock. It contains 20 unique indicators, 15 pre-built templates, 8 explorations, and 6 expert advisors to help you lift your trading to a higher level.

About the Presenter

One of the most intriguing characters on the commodity scene is Alexander Elder, MD. He has his fingers in many different pies and does a quality job in all of them. Elder is a living advertisement for the American dream and the place of futures trading in it." -- Commodity Traders Consumer Report

"How Alexander Elder grew up in Estonia, was educated as a psychiatrist, escaped from a Soviet ship in Africa and became a successful futures trader and head of his own firm, Financial Trading Inc. in New York, would make an interesting book itself." -- Futures Magazine

"Dr. Alexander Elder offers a unique view on the markets. A New York City psychiatrist and professional trader, he runs Financial Trading, which helps people become better traders." -- Financial World

--------------------------

Get your copy of Dr. Elders Enhanced Trading Room for MetaStock, and save $100, visit https://www.metastock.com/dreldera

Monday, January 29, 2018

How to Trade Profitably in a Sideways Market

From the desk of Sagar Nandi and Superior Profit:

Superior Profit traders using CUE Systems follow a step-by-step systematic approach that is fast and easy at the same time.

The first question they ask themselves is "what state the Market is in?". We have identified four distinct Market conditions. One of them is Sideways Market. In a Sideways Market the instrument moves sideways (duh!) where the peaks and troughs are at approximately the same level.

The other three Market States are Trending, Reversing, and Exhausting. You may learn more about these from this and other videos on our YouTube channel.

For now, we focus on the Sideways Market.

Once Superior Profit Traders identify the Sideways Market, next step is to see if there is a valid Sideways Market Trade Setup on the chart. We call this Setup Box Setup as if the Stock is contained inside a box and not able to break out.

It helps that for the Sideways Market we have defined only one trade setup. Not three or seven or twenty-one. And if you are curious, I am happy to share that for each of the other Market Conditions also we have established only one trade setup. This simplicity makes a trader's life easier.

A trader needs to make decisions at the right edge of the chart. Superior Profit Traders do that using Unambiguous Checklist for each Trade Setup. You may refer to the Entry Checklist page for the setups and their checklists.

Applying this, you could identify a Long or Short Box Trade Setup instantly. We came across such a trade in Apple Inc. (AAPL) a few days ago.

Before delving into the trade, have a look at what Analysts were suggesting at that time. They were subtly telling you to Buy AAPL.
Picture

It may be worthy to note that as of the Trade Signal Days (16th and 19th Jan 2018) or even today (25th Jan after Market Close), average Analyst Recommendation on AAPL is a Buy. And consensus Price Target is 10% higher than the price as of 25th Jan Market Close (source: Metastock Xenith or Thomson Reuters EIKON).

In fact, if you see the recommendations, the Price Target was going higher every month from Oct 2017 to Jan 2018 (this current month).

Not the time you would consider taking a Short Trade unless you had a robust systematic approach that was telling you to take a Short and not Buy AAPL at that time. Superior Profit Traders are confident on their own disciplined and data-driven systems and don't go by analysts' recommendations. In fact, they avoid looking at those as it sometimes influences a traders' decision, for the worse.

Below is a CUE Chart that is used by Superior Profit Traders to decide Box Trade Setup. This chart showed possible Box Short Trade Setup on AAPL, and one of our traders executed the trade elegantly.
Picture

The Unambiguous Checklist for the Box Trade Setup is available on the Entry Checklist page.

All the conditions of Box Short Setup were met on the two days 16th Jan and 19th Jan, these are the days that displayed the Bear Release down arrows. The Candle Shape of 19th Jan was Indecisive with both upper and lower tails. That might lead the trader to enter the Short the next day (22nd Jan) when the Candle color turned Bearish (red).

Note also that these two Bear Release signals formed False Upside Breakout - a situation where the Stock tried to go above Sideways Resistance but failed and reversed inside the range. These False Breakouts tend to be more apt times to take a Box Trade.

While mentioning the color, you may see that all the CUE Charts use red/magenta for Bearish signals, green/cyan for Bullish signals and yellow for Neutral signals.

Furthermore, even the CUE Systems for Industry Rotation Analysis and Fundamental & Peer Analysis uses the same color coding. This consistency allows you to respond intuitively to the facts you see on the charts or the Scorecards.

CUE Traders don't just use Technical Charts. They like to perform a complete 360° Analysis before placing any trade. Our trader did the same. Here is the Vital Fundamental and Peer Analysis Scores of Apple Inc. as of 25th Jan Market Close. 
Picture

The CUE Vital Fundamental & Peer Analysis as shown above pointed to a potentially lucrative trade in Apple using Put Options.

What about the Industry Analysis? Was Apple's Industry going up or down? You could know that instantly from CUE Edge Industry Analysis, as described below.
Picture

The Industry was weak - and the color Scorecard showed that unambiguously within seconds.

We, therefore, had a Stock that was giving a CUE Box Short Trade Setup on the CUE Chart while its Industry was weak. Fundamentally it was in the middle. The trader decided to take a Put Options trade. As of 25th Jan, the trade gave more than 100% profit. For the Box Trade, Initial Profit Target is the Lower Range. That target was approached on 25th Jan. With discipline, the trader exited enough Options Lots so that the entire trade is risk-free from now onward.
Picture

This trade was a real-life example of Box Short Trade in a Sideways Stock following one's systems and not looking into others' (Analysts) views. The trade was entered based on unambiguous signals on Charts and also based on Fundamental and Industry Analysis. The comprehensive 360° Analysis could be completed in minutes using Visual CUE Systems.

There are many such Box Trade Examples in the Market. This setup allows for very Low-Risk Entry and sizable Profit. You can search for such Box configuration on CUE Global Technical Trading system. The CUE Sonar program can go through thousands of Stocks and shortlist those with potential Box Trade Setup in a matter of minutes.

The Unambiguous Checklists, Vital Fundamental Scorecard and Industry Rotation Table helps you to make your trades the truly Highest Probability Trades. You may know more about these systems from the Product page.

I end with another Stock (Littelfuse Inc., LFUS) that gave a similar Box Short Trade Setup on 23rd Jan and is working out beautifully.

CUE Chart gave a Box Short Setup. CUE Vital shows LFUS was and is Overvalued. And CUE Edge shows its Industry (Electronic Components) is weak. You could probably figure all these out in minutes from the color-coded CUE Systems. And take another profitable Sideways Market trade with confidence, Shorting the top with a Low-Risk Entry and Trading Profitably using 360° Analysis
Picture
Picture
Picture

Tuesday, November 7, 2017

From real-time industry rotation to profitable trades

From the desk of Sagar Nandi and Superior Profit.

Traders used to read about Sector and Industry Rotation in newspapers or subscribe to delayed information based on after the fact data. Not anymore. With CUE Edge, you may observe Sector and Industry Rotation happening in Real-Time in front of your eyes using Heat Map and Ranking Table.

Real-Time Sector & Industry Rotation at your fingertips

​You see Sector and Industry Rotation in Real-Time using Heat Map and Ranking Table. You may recognize the exact turning point of an Industry by seeing it change color from magenta to cyan (or vice versa). All done using Visual Analysis.

CUE Edge analyzes eleven Sectors and more than one hundred seventy Industries across twelve monthly review periods and more frequently for recent times across ten days, five days, two days and even one day (in Real-Time). It assigns Ranks for each of the analysis periods: 1 to the best performer and large number to the worst performer.

CUE Edge also applies a Heat-Map to the Ranking table that helps you visually, unambiguously and quickly identify which Sector or Industry is strong. Which one is weak. Which one is transitioning from strength to weakness and vice versa. Magenta represents weakness and cyan represents power.

The Pace Ranks at the right edge of the table indicates how fast a laggard is catching up (cyan color shows rapid strengthening ) or a leader is falling behind (magenta color suggests quick deterioration).

From this Ranking and Heat Map table you know where you may look for Long trades (i.e., in strong or strengthening Sector-Industry) and where you may look for Shorts (i.e., in weak or weakening Sector-Industry).

starting at the top: Sector analysis

​Which Sector was going up rapidly for a long time? Information Technology.

Is it weakening now? Yes.

Which Sector was weak earlier and is gaining strength? Energy.

You instantly and in Real-Time can answer these and many similar questions that can add extremely valuable edges to your trades.

Knowing the above facts, you would like to slow down on buying Technology Stocks. Probably book some profit or, at a minimum, use Protect Profit Stop.

For taking new Longs, you would look into Energy Sector, looking for potential Bottom Fishing Opportunities. However, you would like to do that in Fundamentally Strong Stocks. Isn't it? You can do precisely that by effortlessly drilling down from Energy Sector to its Industries to the Stocks and do a Peer Analysis to identify the most reliable Stocks.

Drilling down from sector to industry

Well, Energy as a Sector is going up.

Why don't we find the exact Industry in this Sector that is going to give you the best Long trades?

Just a click of the mouse. And you can view only the Energy Sector's Industries and identify the one best positioned for taking a Stock Buy Position.

Which Industry would that be? Oil & Gas Exploration and Production.

And all it takes is a glance at the drilled-down Industries and look for the cyan color over the five days period. Oil & Gas Exploration and Production Industry is having the best score of all Energy Industries. You may also visually identify the strength from the cyan color.

pinpoint the exact industry for best Long/Short trades

If you did not want to drill down from Sector, that is also perfectly alright.

After all, there are hundreds of Industries and all you might want is to identify which one is strong and look for Stocks to buy there. See which Industries are weak and look for Short opportunities in them.

You can of course do that in CUE Edge.

Using its Real-Time analytics, you see that Broadcasting had been weak for long and is still weak. Well, the best Short opportunities have passed. And the Long opportunities are not ready yet. You may keep an eye on the Industry to see if its starts to turn from magenta to cyan. That might give some Bottom Fishing opportunity.  Wait for that. That day will come when Broadcasting turns cyan. And CUE Edge will show that in Real-Time.

On the other hand, Construction Machinery & Heavy Trucks is an Industry that was strong before (cyan) and is becoming weak. It may be time to protect profit in any Long position in this Industry.

Do you take Short trades? Then it may be time to drill down to the Stocks in this Industry and look for the Fundamentally Weakest Stocks. You can do that in CUE Edge of course.

Drill down from industry to STRONG/WEAK stocks in secs

​Another mouse click. And in seconds you can identify the Fundamentally weakest Stocks in this weakening Industry.

The Vital Statistics tab calculates and puts together all the key and only the essential Fundamental parameters of the Stocks in an Industry. Vital provides Scores across multiple dimensions and applies consistent color coding to let you quickly carry out a Visual Peer Analysis and identify the strong and weak Stocks.

Magenta and Low Score Value is weak. Cyan and High Score Value is strong. It is that simple.

TEX (Terex Corp) is undoubtedly one of the weakest. It is overvalued, recognized instantly by magenta color and low Score in the Relative Valuation Score. It is having poor Growth relative to Peers - as is known from the magenta color across the EPS and Revenue Growth columns along with Low Scores.

It is also near 52 Week High. Would it not be nice to be able to Short the Stock at such high level?

At a minimum, looking at the Industry changing color from cyan to magenta and seeing this Stock Overvalued and having poor Growth, one would book profit or use Stop Order to protect profit.

There is more insight in this Vital tab. The shaded backdrop shows that Growth is in fact negative. And you get the prize for guessing it right. You can drill down to see the exact growth data - visually again.

Analyze key fundamentals using visual data

​Growth is one but not the only area of Fundamentals that you can drill down.

You can see Performance data and conduct Visual Peer Comparison across multiple periods from as long as one year to as recent as today.

You can see Stocks' Fundamental Valuation parameters and compare Stocks in the same Industry.

There are other insights also that you may get from CUE Edge.

For now, if we focus on the Growth of TEX, we see that its Growth is slowing down and has become negative in recent years. Not a time where you would like to add to already existing Long positions. You may start to consider booking profit. Or even look for Short?

truly highest probability long & Short term trades

There you have it.

You are now able to drill down from Sector to Industry. And then from Industry to Stocks and get a comprehensive insight from Fundamental Ranking and Peer Analysis of the Stocks.  Delivered by CUE Edge. Powered by the reliable data from Metastock Xenith (Thomson Reuters EIKON).

What is the result? You can catch the move in an Industry well ahead of others. Be it in the Long Direction or the Short Direction. Finding them just at the moment they start to turn up or down and then riding them until the trend reverses; that is the Industry rotation is complete.

Using this Unique yet, Easy to Use Visual Tool you are also able to decide in minutes if a Stock meets your standard for Long Term Holding. Or is it merely a Short-Term Play as a Swing Trade. You can see if a Stock is Overvalued or Undervalued. Is it having higher or lower Growth relative to peers? And much more.

For Swing Trading, you can take Longs only in strong Industries and in Fundamentally strong Stocks. And take Short Trades in weak Industries and Fundamentally weak Stocks.

Using this unique and multi-faceted CUE Edge, you can trade with a lot more confidence, knowing that Sector-Industry strength/weakness, as well as the Stock's Fundamental strength/weakness, are aligned with your trade.

Finally, of course, you would like only to Buy a Stock that is going up. And Short a Stock (including TEX) that is undoubtedly going down. For that, you may use CUE Charts Technical System and its unambiguous checklists to identify a trade setup at the right edge of the chart. You may refer to our Education Center for more information on that.

And if you are those who would rather watch a video than reading detail books, these Weekly Roundup Videos will show you CUE Edge and CUE Charts in action on Live Market.

Monday, October 30, 2017

Top Market Timer Mark Leibovit takes a look at Twitter

From the desk of Top Market Timer Mark Leibovit:

After consolidating for two years, Twitter (TWTR) appears to be in the early stages of a significant upside move.  The weekly chart displays Positive Volume Reversals (VRs) on August 21 and October 2.  I full anticipate TWTR to clear the 25.25 high from October 3, 2016 and push next to the 29-30 area. Next upside target is 39.00.

https://youtu.be/xeDmBplRRDs

Monday, August 21, 2017

Mark Leibovit takes a look at TSLA

From the desk of Top Market Timer Mark Leibovit:

TESLA -TSLA has been a great trading vehicle for quite some time, but in recent weeks we honed in on  the short-side a couple of times using my Volume Reversal tool as a guide.

Here are the general guidelines.  The chart is simple. It displays the 50 day moving average in blue, the 200 day moving average in green, my VR chart and a 5/3/3 stochastic.  The volume bars at the bottom are color coded to match the VR chart.  As a general rule, I use a rising 5/3/3 stochastic as confirmation of a Positive Leibovit Volume Reversal and a declining 5/3/3 stochastic as confirmation of a Negative Leibovit Volume Reversal.  

On June 26, a Negative Leibovit Volume Reversal and a declining 5/3/3 stochastic perfectly intersected setting up a short-sale or put buying opportunity.  If you scan the chart, you will notice good correlation between the Negative and Positive signals and subsequent price action.  We even look at the weekly chart.  Pretty good correlation there too!  Check it out.

Friday, July 28, 2017

An Amazing Technique for EUR/USD from Domistock's Technical Rating System

Domistock Tools Used: Fast Dominant Hedging Signal System, Auto-drawn Support/ Resistance Lines & Trendlines, Trading Strategies - Tools Exploration, DomiStock’s Technical Rating System
When EUR/USD gets an A rating on a daily chart it attracts the portfolio optimizers and the trading algorithms of the leading investment funds. When it gets an A rating on an intraday chart it attracts trading algorithms of more speculative funds.
When it gets an A rating on both a daily and an intraday chart this means that both the leading investment funds and speculators are looking for opportunities to long EUR/USD.
And one of the best opportunities is when it gets deflated. Then it becomes a candidate for DomiStock’s “Long the deflated winner” strategy. This strategy brought some amazing profit in the last 3 sessions on the 60 min chart of EUR/USD, where the rating was an A and it got a price deflation alert three times, marking two major intraday bottoms.
The “Long the deflated winner” gets a “go long” confirmation when there are either dominant or hedging “buy” orders. And that was the case for both of EUR/USD’s rallies while during it’s correction move the “sell” orders where the dominant ones, as sawn from the Dominant & Hedging Signal System.
It’s important to remember that DomiStock’s tools are made for the modern market ecosystem where over 90% of trading is done automatically.