Friday, March 28, 2008
Trading Rangebound Days and Other Resources for Friday
* Buying and Selling Sentiment on Range Days - Here's a chart of today's NYSE TICK; five minute bars and a 3-period moving average. One of the clues to a range bound market is that we'll get the moving average of the TICK oscillating around the black zero line. On the moves below the line, we end up not being able to sustain fresh price lows, and on the moves above the line, we can't sustain upside breakouts (the move around 11 AM was picture perfect: buying pressure unable to move ES to new highs for the day). The quicker we can recognize the dynamics of range days, the quicker we can adjust our expectations and be nimble in taking profits near range extremes.
* How to Test Your Trading Ideas - I see that Henry Carstens is offering his ebook on the topic free of charge. Excellent, excellent resource. I've just started looking over his Volume I of Trading Ideas; it compiles a number of good sources of inspiration. Unique opportunity to learn from a professional money manager.
* Trading Rules - While we're on the topic of generous sharing, take a look at Globetrader's excellent summary of his trading rules, complete with illustrations. Formulating rules in a structured way is a fantastic aid in controlling the trading process, rather than letting markets control you. Globetrader is one of the bloggers who truly gets it, when it comes to both trading methods and trading psychology.
* Testing Trading Assumptions - A market pullback on light volume is bullish, right? Well, Rob Hanna tests ideas like this and breaks a few myths. Here was his look at market history anticipating the current pullback. Great stuff. I also like his newsletter, which pulls together his various historical studies.
* Risk Management and Position Sizing - Ray Barros has been on a tear, with excellent posts on these topics. Great ideas from an experienced trader and mentor of traders.
* Tracking Market Research - The Research Recap site offers some nice integration of perspectives. Here's a recent overview of the airline industry and here's a look at credit card delinquencies and their relationship to unemployment.
* Bear Market Investing - FOLIOfn has developed some interesting products, enabling investors to buy and sell entire portfolios with a single order. Their recent product allows for bear market portfolio investing. The range of folios and markets covered are impressive.
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