Saturday, November 29, 2008

Video - Weekend Market Summary - 11/29/08

Here is a video for this weekend. I did take a few inverse ETFs on Friday's close so I am expecting a pullback here for various reasons mentioned in the video. I know it doesn't have to happen, but it looks pretty likely here. I also highlight a few short candidates that may work out if we do pullback early in the week. Good luck Monday.


**** Here's a link that should work better for IE users if the first link doesn't work.

8 comments:

Anonymous said...

Great videoMac ... I also went long SDS at the close on Friday. Frankly, if it does gap down, I am more than happy to buy more ...

Would you explain the "Balance of Power" stat?

G

Mac said...

BOP is a proprietary indicator for Telechart that shows the buying power or selling power present in a stock. Bright green shows it is being accumulated and red shows a stock being sold hard.

Fred said...

Everyone thinks that the market is going to be up on monday. I don't think it will. As you said, there is a couple of divergences short term. There is no volume, we are overbought, and it was a ThanksGiving rally. This bounce is over. At least we need a pullback. Everyone expects a bounce monday. Expect the unexpected.
Watch out below monday guys!

Sorry for my english ....

Mac said...

I hope you are right that everyone expects a rally - that would be good for me and my outlook. I am a little worried about a gap up but I think that would be reversed.

Nergo said...

Been listening to your videos for several months. Thanks. Learn something everytime. Question: Are the sma's, Bop, trend lines, volume, and other indicators shown on your vids the primary indicators you use to buy stocks? Are there others? Q#2: When you buy a stock do you have an INDICATOR you use to "automatically" exit/sell the stock? Or, do you let it run and go by "feel"/market conditons? I am having a terrible problem selling a stock much sooner than I should ... taking a little profit only because concerned with volatility and a fast drop in price? Help!

Nergo said...

Are the indicators you use on your vids (sma, bop, volume, trends) the primary indicators you use to buy stocks? What other indicators if any? Is there an indicator to sell a stock or do you use overall market conditions? I tend to sell much sooner than I should and I lose out on +++profits. Great explanation of charts and analysis of market. I'm a routine listener for several months now. Thanks for putting "food on my table", literally... I have 3 kids work full time as you.

Mac said...

Thanks Nergo. I also have one son and another one on the way in less than a month, and I also have a full time job, so I know what it is like.

I would say the main indicators I use are volume, the moving averages, and basic support and resistance lines, like the trendlines you mentioned. BOP works better in a bull market but is something I look for in long candidates.

In terms of selling (or covering in the case of shorts) it is by far the most difficult part of trading. The first key is to realize you are never going to sell at the exact top. You will either be early or late. That's just how it is. Accept that and you'll be on your way.

I would try to come up with a set of rules to use for selling positions based on how much of a gain you have. There is nothing wrong with taking some of your profit when you reach a predetermined level and then letting the rest ride.

Personally, I like to use the 9 day moving average as a stop loss point, although I think it works better on longs than shorts. I try to hold onto positions as long as they close above this level. My emotions get involved from time to time and I don't follow this plan as I should, and it costs me.

Hope this helps. Don't get too down on yourself - you are trading in quite possibly the most volatile environment in history. Good luck.

seeer said...

If you are a swing trader then use trailing stops. I trail my stops 15 cents under the previous days low. Don't be afraid to get stopped out. If you get stopped out, do not be afraid to get back in if it still looks good. Don't panic.
This is my simple rule.