Thursday, July 17, 2008

Trading Breakouts and Other Market Themes

* Tracking A Breakout - Note the move this AM of the Russell 2000 (ER2) futures to a multiday high, breaking above longstanding resistance. Rennie Yang of the excellent Market Tells service notes favorable market expectations following very strong NYSE TICK days. As I noted this AM in my Twitter comment, we had an explosive up move in the Demand/Supply indicator that I track for market momentum. When an upside breakout move is accompanied by indicator strength and participation of multiple market themes, it gains credence. Check out this excellent post from Corey on trading the trend day.

* Tracking Market Themes - Trader Mike's updates include a look at the credit rating of U.S. debt and especially interesting interviews with hedge fund managers. Abnormal Returns takes a look at S&P 500 dividends, an explosion of stocks making new lows, and borrowing costs in the U.S. The Big Picture offers a word cloud for the Fed chair.

* Tracking Blogs - I still think NewsFlashr is *the* tool for tracking updates on financial blogs. I notice they'll be adding live tracking of keywords, quite a nice feature for active traders.

* The Foundation of Failure - Great quote from Brian at AlphaTrends.

* Last Frontier? - Thanks to an alert reader in South Africa for this link to an article on Africa as the last investment frontier.

* Trading for a Living - An interesting formula on how much capital traders need from The Proprietary Trader.