The bulls have a real spring in their step. For eg: over the past five weeks – the S&P 500 up 31% from the March 23rd low. However, technically (for me) not much has changed. Our 10-week EMA (red) remains below the 35-week EMA (i.e., a weekly bearish trend)…
It was the market’s best week in 46 years… but is it a bear trap? I think so. Here I will describe how I use longer-term momentum indicators to help identify when a potential “bear trap” is over and it’s safer to buy stocks
If you have cash – it’s king. And assuming you have low amounts of leverage – you have what I call financial flexibility.
A review of 4 key indicators which help us make an informed decision on economic (and market) risks.
The VIX has been trading at very low levels the past few months. Typically this is a sign of high complacency from traders. The question is how long will that last?
I cannot over-emphasize the importance of stringent (rules based) capital and risk management
As an aside, I remember reading when Paul Tudor-Jones started his day – he wasn’t focused on how much we could make – it was how much he could lose.
Now in today’s volatile market (e.g., where a stock price can fall “20%” from one week to the next) — you must be rigorous with how you apply capital. There are no excuses.
And this brings me to basic “2 & 20” Rule. And this rule will apply not matter where you are in your trading journey…
