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WTF Chart of The Day: What Separate Amateurs From Experienced Traders On a Trend Day
2014 Jun 12 Thu 22:28:04 | by
Today (Jun 12, 2014) US stock market dropped in a directional manner.
Red down arrow marking the start of the day.
The horizontal blue lines highlight the range of Monday and its downside expansions are highlight in other colours.
The rejection of Monday low from Wednesday tells us today 100% expansion of Monday's range is very likely. Even a breakdown to 200% expansion is likely. It is pure STOPD play.
Trend channel breakdown also points to a drop to an expanded level below.
Yet, all day we see in various trading forums and real-time stock tweets that people kept trying to pick the low of the day as if they have no idea what a trend sell day is. The selloff has to happen although majority of traders refused to believe it. It is funny how they raised all kinds of conspiracy theories why the selloff took place.
Experienced traders who have learned to let go of their egos long time ago know better to not picking bottom all day on a day like today. Being able to sense the difference in price actions from the prior trading days is not a special skill. It is just being observant.
There was a point in time I tried hard to see if I could persuade new traders and hotshots from making such mistakes. I have given up since because I have learned that it is a waste of my time on people who refuse to accept their ignorance. I find it much more rewarding to help those who seek better understanding on how the stock market really works.
WTF Chart of the Day: VIX Is Settling At Its New Home
2014 May 13 Tue 17:34:15 | by
A quick note on VIX why it has moved towards 12.
Anyone who has read my article on the real underlying behaviour driving VIX level should know that as S&P500 moves towards 1900, VIX is bounded to move towards 12. That's the way it is. The fact that VIX drifts into 12-13 area is not a signal by itself that the market is topping.
It takes more than that for a market top setup.
Ukraine Nudging Towards What Russia Wants Update
2014 Apr 30 Wed 13:49:23 | by
I posted back in the beginning of March that the crisis in Ukraine that my first hand information indicates the only thing that really matters is the control of the pipelines.
It is proven to be correct and that the mainstream media has been all wrong. I am not sure what their intentions are but accurate reporting is probably not high on the list.
As of this point in time, the second phase of the struggle in Ukraine has locked in.
All you have to do is check out the map of the pipelines from the original post, you will see that it is imminent for Eastern and Southern part of Ukraine to be severed. Specifically, it is the region where the main southern pipeline is located. The rest of the Eastern region is just bonus.
Do not mistaken that it is Russia's fault causing Ukraine to break up. The fault can be squarely cuffed onto United States, its European allies and the so-called government Ukraine has created at this point. The suppression of people and corruption at the top always backfire.
Putin just takes advantage of the opponents' stupidity. His offer of hope and jobs to Crimea is all it takes to nudge the people in Eastern Ukraine to choose at least independence over the control from Kiev.
Putin is one step closer to what he wants now.
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I've read and discuss about what happens in Ukraine since last week with many parties who are directly affected by the event. These stake holders all mentioned the same thing which I pointed out to the others - pipelines. Specifically, the natural ...
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