Posted by 26 June 2004

Trading 101: Moving Averages

Moving averages (MAs) are very simple, yet extremely useful tools for investors. A moving average is simply the average of a series of numbers over a period of time which is constantly updated by dropping the oldest value and then adding the newest value and recalculating the average. So a 5-day moving average of stock [...]

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Posted by 25 June 2004

More Chop

The NASDAQ acted kinda strange today which I think was due to the Russell 2000 re-balancing. While the S&P 500 and Dow closed more than 0.5% lower, the NASDAQ gained 0.5% thanks to a late day surge. Whatever the reason it just proved to be another choppy day. Below are charts of the NASDAQ and [...]

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Posted by 25 June 2004

Lots of Strength This Morning

Once again the NASDAQ is on fire for the entire first hour of trading. This is why I wait for my set-ups to trigger (shorts have to trade under the previous day’s low). You’ve gotta wait for confirmation! So even though I have way more shorts on my list most haven’t triggered. I did short [...]

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Posted by 25 June 2004

The Dangers of Thinly Traded Stocks

I just found a good article discussing the ‘art of buying thinly traded stocks.‘ It has some great information about such stocks, despite the author’s low blow at bloggers. Here’s a snippet (emphasis is mine):

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Posted by 25 June 2004

Watchlist for June 25, 2004

All of a sudden there are lots of good looking shorts, especially in semiconductors and drugs. I’m tempted to try some of those semis but I’m torn because I really want to stay in cash ahead of the Fed meeting. Maybe I’ll try a couple if they trigger. Currently holding:

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