Sunday, May 20, 2007

Weekend Reading and Market Insights

* Large Cap Strength: The updated Trading Psychology Weblog reviews the recent strength among large cap stocks and looks at where money is flowing among the S&P 500 sectors.

* Developing Creative Trade Ideas: The Trader Performance Page and my recent post on market vision represent directions I'm taking in my own research and trading. The idea is to trade themes, not just broad market movements.

* Great Weekly Review: Every weekend from Barry Ritholtz and the Big Picture's linkfests. This week's links include some insight into what happens when markets display bad breadth. See also the top ten water stocks.

* An Alternate View of Web Search: Trader Mike notes the recent interview with Jimmy Wales and wiki implications for search.

* Membership Hath Its Privileges: Charles Kirk offers a wide ranging Q&A session for members touching on such issues as what could derail the bull market, recommended software for learning technical patterns, setting trading goals, perspectives on market timing, and much more.

* Blogging the Frenzy: The Wall St. Journal MarketBeat feature does a nice job of tracking trading ideas, market developments, and posts through the day.

* More Fine Links: Abnormal Returns hits a number of fine posts, including a view on how financial stocks are turning in disparate performances.

* The Value of Moving Averages: Michael Covel shares a great perspective from Ed Seykota.

* Wrapping Up the Market Week: Larry Nusbaum offers a great collection of posts, including ETF performance.

* Chronic Stress: Dr. Hong outlines the biology of chronic stress and the implications for traders. Great new site.

* Perspectives Galore: From Misstrade, including a bicoastal view of trading.

Have a great start to your week!



g0thm0g said...

I know that Larry does more than summarize the ETF market, but you might find my dollar weighted daily/weekly ETF/CEF market summaries interesting. Dollar-weighting is money-flow-weighting for daily and a decent approximation on longer terms.

That moving average quote is great as well. Looks like the 2/5-crossover traders might be the ones leaving E*T/Ameritrade and heading to the zero-commission brokers.

-Michael Bommarito

MIsstrade said...


Have you done any studies of your successful traders, where the live, what they do outside of trading with their free time, and how they balance the stresses of work with a productive life outside of the charts?
Just curious?
Miss Trade

Brett Steenbarger, Ph.D. said...

Thanks for the link, Michael. The correlation data with SPY are quite helpful--


Brett Steenbarger, Ph.D. said...

Hi Miss Trade,

Interesting questions, but, no, I haven't systematically studied what successful traders do in their time outside of trading. I have found, however, that the presence of a full life outside of trading is very helpful in the trader's ability to withstand drawdowns and other performance pressures. Very difficult to succeed if well being is wholly dependent on P/L.