|Powerful convergence of moving averages forming on the IWM. Plus additional info.|
13, 50, 100
7, 44, 89
10, 30, 100
20, 50, 200
50, 100, 200
The smaller HFT machines are going to come to 'irrelevant conclusions' and ram into each other left and right. I wouldn't let a machine trade at a time when human traders are dominating the field.
It is really important to have a slower trading strategy in times like these and fall back on solid fundamental analysis...
And trust me when I say that things are only going to get better for equities for the simple fact that QE 3-4 in in session and we are NOT in a recession.
Pay attention to theMagician and his technical analysis
And pick strongest stocks in solid sectors...stick with well known companies in case they unleash 'the disruptor' and flash crash us to death or jam us to new unrealistic highs (both are scary).
Catalysts could be Oil or Gold because Europe is losing its market moving psychology... so pay attention and pick up some low beta positions. Meaning, Don't just play Billy Jo's cash rich Bio-Pharma and Mad Cats Technology Mouse Pad Extravaganza Stocks. Those are fun, but sometimes they are stupid and NOT good for new traders (or even old traders). theMagican calls most of these these turd stocks for a reason. A lot of these are companies exist to IPO, sell off shelf shares, dilute your a$$, then close and move on to do it again.
Remember we mice can only play and win for so long before the firms rip us to shreds...Just be ready, be cool, don't be surprised and don't overreact.
Peace, commerce and honest friendship with all nations--entangling alliances with none. ~ Thomas Jefferson (First Inaugural Address)
War therefore from its productiveness as it easily furnishes the pretense of necessity for taxes and appointments to places and offices becomes the principal part of the system of old governments and to establish any mode to abolish war however advantageous it might be to nations would be to take from such government the most lucrative of its branches ~ Thomas Paine