studying stock market trends
March 17, 2014
Stocks gapped up on Monday, but the daily signal from volatility remained bearish. I closed speculative bearish positions at a loss in the morning.
March 14, 2014
The volatility study is accelerating below its moving average, suggesting a meaningful bearish trend is underway. I re-established bearish positions today.
March 12, 2014
The volatility study remains bearish, but looks as if it could flip to a bullish signal on Thursday. I closed my bearish positions today and must reenter if shares continue down.
March 11, 2014
Shares fell sharply, with bearish signals becoming more pronounced. The discretionary/staples ratio is decidedly bearish now. I bought puts in the morning.
Financial markets are predictable because segments of price action fit together in a limited number of patterns that are not random. Markets are unpredictable too because there is enough variability in the patterns to hide the trend at some stages of development. I am fascinated by the market and spend a lot of time working to identify price trends so I can exploit them for profit.