Thursday, February 07, 2008

A Few Good Ideas for a Thursday

* When Selling Sentiment Can't Push the Market Lower - Above we can see the S&P emini futures and the NYSE TICK. Note the selling bouts in TICK, with raw levels in the -1000 range (blue arrows). Despite these selling squalls, prices held above their early AM lows. When intense selling sentiment can't push the market lower, we usually get a bout of short-covering, good for a short-term trade.

* The Many Causes of Misjudgment - Thanks to a very sharp trader who sent this my way. It's a must-read from Charlie Munger on "The Psychology of Human Misjudgment".

* Addictive Trading? - Thanks to a reader for bringing this NY Times article to my attention. I continue to believe that addictive trading is a topic no one (exchanges, educators, coaches) want to go near; it brings in too much business. Here's a post designed to assess possible trading addiction. Here's John Forman's advice on pursuing trading in a responsible manner.

* Biological Consequences of Stress - Excellent post from Sharp Brains on how stress affects the brain.

* Gloom, But Not Doom - Gallup finds consumer confidence in the economy on the wane.