NEW YORK (AP) -- Stocks futures are rising after the leaders of France and
Germany vowed to strengthen Europe's banks to help them weather the region's
debt crisis.
German Chancellor Angela Merkel and French President Nicolas Sarkozy on
Sunday said a "comprehensive response" to the debt crisis would be finalized by
the end of the month, including a plan to ensure banks have adequate
capital.
That reassured investors, even though the leaders provided few specifics on
how the plan would work.
Ahead of the opening bell, Dow Jones industrial average futures are up 125
points, or 1.1 percent, at 11,191. Standard & Poor's 500 futures are up 14,
or 1.2 percent, at 1,169. Nasdaq 100 futures are up 29, or 1.3 percent, at
2,230.
The bond market is closed for the Columbus Day holiday.
Monday, October 10, 2011
NEW YORK (CNNMoney) -- U.S. stocks were poised to open sharply higher Monday, as investors welcomed a pledge from European leaders to unveil a plan to solve the European debt crisis by the end of the month.
Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up more than 1% ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
Dow Jones industrial average (INDU), S&P 500 (SPX) and Nasdaq (COMP) futures were up more than 1% ahead of the opening bell. Stock futures indicate the possible direction of the markets when they open at 9:30 a.m. ET.
NEW YORK (MarketWatch) — U.S. stock market futures rose Monday
as France and Germany pledged to do everything necessary to support Europe’s
banks, while investors also looked ahead to the start of third-quarter earnings
season.
Futures on the Dow Jones Industrial Average /quotes/zigman/2976950 DJ1Z +1.14% gained 137 points to 11,203 and those on the Standard & Poor’s 500 index SP1Z +1.29% rose 15.60 points to 1,170.50.
Nasdaq 100 futures ND1Z +1.41% were up 29.50 points at 2,231.25.
Technicians turn bullish
By Barry Ritholtz - October 10th, 2011, 7:30AM
By Barry Ritholtz - October 10th, 2011, 7:30AM
I mentioned last week that I believed we were due for a rally lasting 4-7 days, and a move 5-7% higher.
The WSJ Ahead of the Tape column discusses some of the reasons many Technicians are starting to turn Bullish — whether its for a trade or something longer lasting. Last Tuesday was an “Outside reversal” day, something pointed out by several traders in the article.
I do not blithely dismiss technicals the way many value or fundamental managers do. But I do want to see statistical evidence that there is some validity there. Recall that our prior look at technical signals like the Death Cross and the Hindenberg Omen pointed out they were less reliable than a random coin toss. Some explanation as to causation helps, so we know we are not confusing mere correlation as well.
Which brings us to an Outside Reversal day. I understand the thinking behind the Japanese Candlestick charts, but I have been unable to find any data that shows the reliability of this day historically.
But to me, the real key is going to be the next few quarters of earnings. If we see a move off of the recent peak as the economy softens, it suggests stocks are priced dearly. If earning can maintain their strength, then stocks are cheap here.
>
The WSJ Ahead of the Tape column discusses some of the reasons many Technicians are starting to turn Bullish — whether its for a trade or something longer lasting. Last Tuesday was an “Outside reversal” day, something pointed out by several traders in the article.
I do not blithely dismiss technicals the way many value or fundamental managers do. But I do want to see statistical evidence that there is some validity there. Recall that our prior look at technical signals like the Death Cross and the Hindenberg Omen pointed out they were less reliable than a random coin toss. Some explanation as to causation helps, so we know we are not confusing mere correlation as well.
Which brings us to an Outside Reversal day. I understand the thinking behind the Japanese Candlestick charts, but I have been unable to find any data that shows the reliability of this day historically.
The technical data points that support a rally here include:The bailouts in Europe, the German pledge to protect European banks, the Merkel and Sarkozy pledge for bank recapitalization, are just as likely a cause of today’s lift as the technicals.
• Divergences between NYSE New 52 Week Lows and Market lows — NYSE is making less New lows while the S&P isn’t, a positive divergence.
• % of NYSE Stocks above their 200-Day Moving Averages — about 15%, up from 7%. When in this range, stocks tend to eventually rally. Note they slipped from 15% over a few months to 1% in March 2009 — so its hardly a precise timing tool.
• VIX: The spike last week to 45 suggests excessive fear (Caveats abound for this indicator also, whixh hit 48 on August 8)
• 90/10 days — several downside 90/10 days in volume and breadth help washout sellers, albeit somewhat temporarily these days. At the very least, the 90/10 days imply a short term rally.
But to me, the real key is going to be the next few quarters of earnings. If we see a move off of the recent peak as the economy softens, it suggests stocks are priced dearly. If earning can maintain their strength, then stocks are cheap here.
>
The market (YM Futures) is gaining ground from this 5-min chart from the Globex market.
Looks like a positive outcome today is possible due to some encouraging news coming from Europe.
The best way to trade for a long position today is to wait for a pullback after the open and analyze the price action.
Gauging the S/R price is the right area to put on a trade.
Let's see the action if there is a probable to trade, otherwise, we'll stay on the sideline.
Looks like a positive outcome today is possible due to some encouraging news coming from Europe.
The best way to trade for a long position today is to wait for a pullback after the open and analyze the price action.
Gauging the S/R price is the right area to put on a trade.
Let's see the action if there is a probable to trade, otherwise, we'll stay on the sideline.
Sunday, October 9, 2011
The market (YM) made a three day move upwards last week.
But the way I can analyze this daily chart is that it might stay idle for a few day(s) possibly by Monday or Tuesday then will stretch its trend from there.
It might take a while to move from the range, 10500 (support) - 11500 (resistance).
It is still a traders market from this area but it is still a good area to make a long position with a good price stop to make it sure not to incur (big) losses.
For the long term investors (fundamentalist) is not yet time to make a bet in the market due to unforeseen/unpredictable events that is coming from the economy of other countries.
But the way I can analyze this daily chart is that it might stay idle for a few day(s) possibly by Monday or Tuesday then will stretch its trend from there.
It might take a while to move from the range, 10500 (support) - 11500 (resistance).
It is still a traders market from this area but it is still a good area to make a long position with a good price stop to make it sure not to incur (big) losses.
For the long term investors (fundamentalist) is not yet time to make a bet in the market due to unforeseen/unpredictable events that is coming from the economy of other countries.
Saturday, October 8, 2011
Traders Ask: How does your posture affect your trading? Oct 4th, 2011 | By Bella |
Hi. My question concerns body posture when sitting at a screen for hours a day.
I’ve learned i need to be very aware when trading of what’s going on in my brain, what I’m seeing and how I feel and think about it, and what baggage from life might be influencing my mood.
Often though I also realise that my body is there with me too too, often being sadly neglected..
Maybe I’m slumping, hunching shoulders and back. I’ve tried different kinds of chairs, soft and hard regular ones, a special kneeling posture one, now I’m on a large inflatable pregnancy ball. it’s an ongoing search for how best to look after myself physically. I spend a good bit of time doing physical stuff outside trading time but it’s the hours spent on screen when I’m not sure I take best care of my one and only body!
Any advice to offer on how you guys deal with this aspect of a traders lot?
Thanks
Dr. Andrew Menaker responds
Being very aware of what you’re thinking and feeling is a critical component of self-management.
And self-management has a huge impact on how we make decisions. As we move from one mental state to another, our body, including our posture, and breathing, plays an important role. So, learning to tune into your body is a big part of self-management.
There is an abundant amount of research in psychology, medicine, and in business that shows how
posture plays a role in communicating emotional state and influences our decisions and actions. In fact, many technology companies have departments that conduct research on user interface and nonverbal behavior. Microsoft calls their department, Decision Theory and Adaptive Systems Group.
We have both a central nervous system (brain and spinal column) and a peripheral nervous system
(nerves that extend throughout the body). The two systems communicate with each and have a profound impact on decision-making and behavior.
Try this. Spend a few minutes sitting slouched, with your shoulders slumped, legs stretched out, chin
dropped toward your chest. Next, spend a few minutes sitting up straight or slightly forward, raise your chin and lean your head slightly to one side. Notice a difference in how you feel and the type and quality of your thoughts?
Not only does our posture impact our internal state, our body can also act as an emotional warning
system. And if you think about it, that can be very helpful in trading. We may be following price action, order flow or something on the chart as an indicator to help us decide what to do; we can also use our body as an ‘indicator’.
Being aware of your emotional state is an important part of learning how to control your actions.
Many people have difficulty tuning into their emotional state. Focusing on physical sensations throughout the body can help you become aware of your emotional state. Tense shoulders, butterflies or ‘pit’ in the stomach, clenched fist, muscle twinge, ‘nervous tick’, heart rate variability, and depth and rate of breathing can be examples of an emotional state reflected in one’s physiology. Our emotions are a form of self-communication, when we learn what the message is, we can often make better decisions.
In my work with traders, I sometimes recommend a standing desk, instead of sitting, for traders that have an attention or focusing issue.
Many people, including traders, report that regular practice of yoga helps them maintain body awareness as well as reducing stress.
Possibly the single most powerful thing you can do with your body is to become aware of your breathing and change it, if necessary. When trading, anxiety and tension can overtake us, often resulting in decisions and actions that our not in our best interest as a trader. As traders, we must learn to use all the tools available to us, including our own body, to make better decisions and learn to take control of our actions.
Here’s a simple but very effective technique I refer to as “breath first aid” because it can quickly alter
your internal state and influence your decisions and behavior. Take four long, slow deep breaths, filling your abdomen (not your chest) with air. Pause for a second at the end of each inhalation and exhalation.
And if possible, inhale through your nose and exhale through your mouth.
Dr. Andrew Menaker
@popdoctrader
Dr. Andrew Menaker is a full-time trader, with a PhD in psychology and has worked as a consultant and coach with institutional and retail traders since 1995.
I’ve learned i need to be very aware when trading of what’s going on in my brain, what I’m seeing and how I feel and think about it, and what baggage from life might be influencing my mood.
Often though I also realise that my body is there with me too too, often being sadly neglected..
Maybe I’m slumping, hunching shoulders and back. I’ve tried different kinds of chairs, soft and hard regular ones, a special kneeling posture one, now I’m on a large inflatable pregnancy ball. it’s an ongoing search for how best to look after myself physically. I spend a good bit of time doing physical stuff outside trading time but it’s the hours spent on screen when I’m not sure I take best care of my one and only body!
Any advice to offer on how you guys deal with this aspect of a traders lot?
Thanks
Dr. Andrew Menaker responds
Being very aware of what you’re thinking and feeling is a critical component of self-management.
And self-management has a huge impact on how we make decisions. As we move from one mental state to another, our body, including our posture, and breathing, plays an important role. So, learning to tune into your body is a big part of self-management.
There is an abundant amount of research in psychology, medicine, and in business that shows how
posture plays a role in communicating emotional state and influences our decisions and actions. In fact, many technology companies have departments that conduct research on user interface and nonverbal behavior. Microsoft calls their department, Decision Theory and Adaptive Systems Group.
We have both a central nervous system (brain and spinal column) and a peripheral nervous system
(nerves that extend throughout the body). The two systems communicate with each and have a profound impact on decision-making and behavior.
Try this. Spend a few minutes sitting slouched, with your shoulders slumped, legs stretched out, chin
dropped toward your chest. Next, spend a few minutes sitting up straight or slightly forward, raise your chin and lean your head slightly to one side. Notice a difference in how you feel and the type and quality of your thoughts?
Not only does our posture impact our internal state, our body can also act as an emotional warning
system. And if you think about it, that can be very helpful in trading. We may be following price action, order flow or something on the chart as an indicator to help us decide what to do; we can also use our body as an ‘indicator’.
Being aware of your emotional state is an important part of learning how to control your actions.
Many people have difficulty tuning into their emotional state. Focusing on physical sensations throughout the body can help you become aware of your emotional state. Tense shoulders, butterflies or ‘pit’ in the stomach, clenched fist, muscle twinge, ‘nervous tick’, heart rate variability, and depth and rate of breathing can be examples of an emotional state reflected in one’s physiology. Our emotions are a form of self-communication, when we learn what the message is, we can often make better decisions.
In my work with traders, I sometimes recommend a standing desk, instead of sitting, for traders that have an attention or focusing issue.
Many people, including traders, report that regular practice of yoga helps them maintain body awareness as well as reducing stress.
Possibly the single most powerful thing you can do with your body is to become aware of your breathing and change it, if necessary. When trading, anxiety and tension can overtake us, often resulting in decisions and actions that our not in our best interest as a trader. As traders, we must learn to use all the tools available to us, including our own body, to make better decisions and learn to take control of our actions.
Here’s a simple but very effective technique I refer to as “breath first aid” because it can quickly alter
your internal state and influence your decisions and behavior. Take four long, slow deep breaths, filling your abdomen (not your chest) with air. Pause for a second at the end of each inhalation and exhalation.
And if possible, inhale through your nose and exhale through your mouth.
Dr. Andrew Menaker
@popdoctrader
Dr. Andrew Menaker is a full-time trader, with a PhD in psychology and has worked as a consultant and coach with institutional and retail traders since 1995.
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