Posted by 31 July 2003

Low Volatility to High Volatility

After yesterday’s super tight range, I started thinking that we were experiencing the calm before the storm. That is to say that low volatility gives way to high volatility. Here’s an article that talks about that very concept by examining the current action in the VIX — A Big Move Is Near — Here’s Why, [...]

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Posted by 31 July 2003

Headfake

It sure looked like today was the day for the trading range to break. The economic reports released this morning had the indices flying high by mid-day. But sellers stepped in late in the day and found little resistance. The Dow actually got above its June high today but it closed 100 points below that [...]

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Posted by 31 July 2003

Gapping Up… Again

Well this morning’s economic reports have the futures flying in the pre-market session once again. Were looking to gap up near the upper end of the trading ranges on the indices. Could this finally be the move that breaks us out of the range? I don’t know, but I do know that Rule #1 is [...]

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Posted by 29 July 2003

Frustrated

I’m glad I’m not the only one who’s been cursing at the screen every time one of these #@&*ing Iraq rumors (or actual news for that matter) surfaces: (from Briefing.com) 14:53 ET Floor Talk : In speaking with institutional desks today, traders expressing frustration that macro events such as Saddam rumors are influencing intraday action [...]

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Posted by 29 July 2003

Death by a Thousand Cuts

MaoXian gives an excellent illustration of how the market hunts for stop loss orders. And I love the quote he references — “Trading is the toughest way to make an easy buck.” Truer words have never been said.

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