Traders' Library Blog

Stocata S&P 500 Analysis: Januari 27, 2018.

Two weeks ago I wrote: "Drawing a medium term Fibonacci target, the index is close to the 2805 target I mentioned last week. Indicators are topping and we are close to this 423.6% Fibonacci target. Short term I expect some pullback, possibly after reaching the short term Fibonacci target. Long term it looks like the 3000 level is now within reach. I commented this in the weekly and monthly chart. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

he index broke the 423.6% Fibonacci target from 2 weeks ago. Now even the R3 Pivot level of the current Month is broken. However, price is far away from the lower side of the volatility channel and from all averages. The Stochastic RSI may be making a negative divergence with the index. Normally this means that a pullback is not far away. As mentioned with the weekly chart I expect a reaction around the 3000 level. On the other hand I expect a continuation of the move after a correction. The longer term Fibonacci target is around 3200. Maybe you should try a long trade after the expected reaction for a ride to 3200. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view. The short term SVEPRExp Price Range expert system is green for a long position. Black means a short position and red is a warning for a possible short. 

Sylvain Vervoort   http:/stocata.org/

Stocata S&P 500 Analysis: Januari 13, 2018.

Last week I wrote: "The reaction was limited to what we had already the previous week on Friday. The first week of the year was apparently reserved for celebrating the good trading year 2017. We are getting more and more gaps that need to be filled. The index reached the R2 pivot resistance of the current month and is possibly on the way to a next Fibonacci target at 2805. My best guess is that this 2805 is the top for the coming weeks. We will most probably get at least a small correction from this level. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view."

Drawing a medium term Fibonacci target, the index is close to the 2805 target I mentioned last week. Indicators are topping and we are close to this 423.6% Fibonacci target. Short term I expect some pullback, possibly after reaching the short term Fibonacci target. Long term it looks like the 3000 level is now within reach. I commented this in the weekly and monthly chart. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

The short term SVEPRExp Price Range expert system is green for a long position. Black means a short position and red is a warning for a possible short.

Sylvain Vervoort  http://stocata.org/

"Got My Ass Handed To Me”

Here is a note I got from a student:

 

"Started trading Options in Sept with $7500, was making good money in BA and LMT, so I dumped my Risk Mng, and bought 5 contracts for each. Account rocketed to $14,000, then, got my ass handed to me and fell off to $5300 !!! Haaaaa, Ouccchh, then as you advised, I put my "Pro Hat" on and started to watch my Risk Mangement like a PRO, now at $9003!!!

 

Thanks for helping me get my mind right, appreciate you Courtney."

 

Bob raises some great points.

 

First, he starts to get a case of the Midas Touch Syndrome. This occurs when you have a run of profits and start thinking you don't have to follow your rules. You just have to touch trades and they make a lot of money. But, of course, it doesn't work that way.

Just because you made some money doesn’t mean you raised your IQ by 100 points!

 

Of course you can make a lot more money if you don't use good risk management but breaking that discipline is nearly always a path to ruin.

 

Bob lived through the storm and was able to recover and put on his Pro Hat! Awesome!

 

It is important for us to always put on our Pro Hat and stop acting like an amateur. Pros make money and amateurs don't. Good for Bob!

I love the fact that Bob was able to raise his account by almost 80% after putting on his Pro Hat. Awesome!

 

I can help you with this! This is a good reason to subscribe to my new Smith’s Stock Swing Trader service. I will guide you through the stock and option markets twice a day! Watch me make a living trading! Click here to register.  

 

Twice a day I put out my action swing trades in stock and options. I’ve been crushing it! You

can learn more by clicking here.

 

 

Good trading,

Who Wins In A Fight? Day Traders or Swing Traders?

I’ve done both and made money doing both. Here’s how I see the fight.

 

Day traders are those that buy and sell a stock, futures, options, or forex and liquidate before the day ends. Swing traders will likely hold the position 1-5 days.

 

Day traders will talk about how they close out all their positions at the end of the day so they don’t have any risk overnight.

 

Swing traders will retort that they do take more risk overnight but they will also often be making money over night. Making money while they sleep!

 

Swing traders will talk about how they make more money on average than a day trader. The day trader will respond by pointing out that the swing trader takes only a few trades to the many trades a day trader takes.

 

In the final analysis, I prefer swing trading to day trading because I don’t have the patience to stare at a screen for hours each day. Seems more like a job than a way to make money.

 

To me, one of the most important aspects of trading is the ability to NOT spend time trading! To live your life instead of having a job.

 

Sound interesting?

 

Twice a day I put out my action swing trades in stock and options. I’ve been crushing it! You can learn more by clicking here.

 

Yes, you can make a living as a trader!

 

Click here to register.  

Stocata S&P 500 Analysis: Januari 6, 2018.

Last week I wrote: "We are two weeks later and the last gap is closed. You can see the negative divergence between the index with higher tops and the indicators with lower tops now confirmed with a larger negative candle and a convergent move between the index and indicators. Technically we must expect a further move down in first instance to 2660 and next to 2625 closing the next gap in the up trend. At that point we should expect some pullback. Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view. I wish you all the best for 2018 especially a good health, lot's of fun and good profits with your trading!"

The reaction was limited to what we had already the previous week on Friday. The first week of the year was apparently reserved for celebrating the good trading year 2017. We are getting more and more gaps that need to be filled. The index reached the R2 pivot resistance of the current month and is possibly on the way to a next Fibonacci target at 2805. My best guess is that this 2805 is the top for the coming weeks. We will most probably get at least a small correction from this level. The short term SVEPRExp Price Range expert system is green for a long position. Black means a short position and red is a warning for a possible short.Read my comments on the weekly chart and monthly chart  for more information regarding the longer term view.

Sylvain Vervoort   http://stocata.org/